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Post by Badly Drawn Stickman on Mar 5, 2019 19:24:52 GMT
Loan value £618,000.00 Asset value £1,583,000.00 LTV39.10% Rate (pa) 12.00% Start date 05/03/2019 End date 11/03/2024 Well nobody can complain about the amount of information given, but........ '£620,000 giving an LTV of 39.1% for the initial loan of £618,000.' Does this suggest a further loan is to be added later MoneyThing ? Presumably a bid limit? |
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johni
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Post by johni on Mar 5, 2019 19:45:25 GMT
Bid limit £2500
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ptr120
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Post by ptr120 on Mar 5, 2019 20:29:22 GMT
To get the questions started: Any interest held on account or all serviced monthly? On the 2 x BTL properties, are they currently tenanted and does the rent match the valuation report? On the 2 x second charges, how much is the first charge on each property and how much equity is left in each property after our second charge? Do you have any agreement with either of the first-charge holders about liquidating the security in the event of default? Is the rent from the BTL properties mandated to us? Any minimum loan term? Current value of the PG? If I read the table correctly it suggests that the borrower is in fact an existing borrower (perhaps off the platform?) given that annual MT interest costs are shown under prior years. Is this correct? Does / has the borrower provided services to MT? Welldone MoneyThing for the new deal |
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SteveT
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Post by SteveT on Mar 6, 2019 8:53:42 GMT
MoneyThing Ed, a couple of things from me for the FAQ: 1) (Already touched on above) Is the inclusion of £93k "Annual Moneything Interest Cost" in each of the 2016 / 2017 / 2018 figures merely intended to demonstrate what the historic Interest Coverage would have been in those years, had the company's existing loans already been refinanced with this MT loan. Or was MT already providing loans to the company offline? I presume the former, given the figure is identical across the years. 2) Given the extent to which the LTV figure relies on the robustness of the Debtors covenant, can you please give more detail on how and when this covenant will be monitored / tested, and by whom? Monthly / bi-monthly / quarterly? Externally audited? What, in practical terms, will MT's plan be if the Debtors balance declines and the covenant is breached?
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SteveT
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Post by SteveT on Mar 6, 2019 9:02:53 GMT
MoneyThing And, out of interest, how was the £620k covenant figure arrived at? It seems curiously precise if current Debtors are running at around £1.3m, so was it set at "50% of the current Debtor balance as at [date]", or is it the sum of certain longstanding customers' balances, or ...?
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baldpate
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Post by baldpate on Mar 6, 2019 9:33:45 GMT
They have to do with the Debt Covenant, which is a very significant factor in making the headline LTV an alluring 39.1%; if you exclude the Debt Covenant, then (calculated on the property security alone) I make the LTV a much less enticing 80%, of which 2 of the 3 security properties are 2nd charges!. My concern is that the debtor book can rapidly disappear in a sticky situation, and MT won't know it's gone until it's too late!.
1. You state that the Debtor cover " ... is measured by reference to the statutory accounts or other regular financial information to be provided by the borrower." - What is the nature of this "other regular financial information" - is it Management Accounts for the individual group companies, or what?
- How frequently will this information be produced - quarterly? half-yearly? something else?
- How quickly will it be produced and made available to MT after the relevant period end? Is this a contractual requirement?
2. Barclays Bank have an existing debenture over the group (and over several of the subsidiary companies).
- Will this/these be satisfied and discharged when the MT loan is completed, or will the MT debenture be second ranking?
3. Will this arrangement allow MT, if it should be necessary, to take control of the group (presumably via Administration?) quickly enough to actually realise value from the debtor book?
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gwenynwyr
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Post by gwenynwyr on Mar 6, 2019 15:47:48 GMT
Looking forward to answers to all of the above, but for me the big question is why does such a sucessful firm such as Arm ****** with it's connections to major banks need to borrow from p2p lenders at such high rates? |
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Post by mrclondon on Mar 6, 2019 16:23:16 GMT
The central London flat has three title records at LR, two leasehold and one shared freehold. The VR comments the property comes with a share of the freehold, but doesn't expand on the leasehold titles, beyond "long leasehold".
It would be helpful to know which of these three titles will be covered by MT charges, the length of the leases, the annual ground rents and review mechanism.
~~~~~~~~~~
The Bassingbourn BTL (*******way) was vacant at the time of the VR in Nov 18. Is it now tenanted ?
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Carter
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Post by Carter on Mar 6, 2019 18:09:49 GMT
Looking forward to answers to all of the above, but for me the big question is why does such a sucessful firm such as Arm ****** with it's connections to major banks need to borrow from p2p lenders at such high rates? Quite. I'm afraid I lost interest when I read the purpose of the loan. If this loan is more competitive than their banking facility then I'd have to ask why.
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liso
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Post by liso on Mar 7, 2019 10:50:48 GMT
Loan launch delayed till tomorrow Friday 8th.
Update on platform.
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sarahcount
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Post by sarahcount on Mar 7, 2019 21:37:44 GMT
FAQ now on platform. MoneyThing Thanks for taking the time to engage with us and answer our questions |
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KoR_Wraith
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Post by KoR_Wraith on Mar 7, 2019 21:47:26 GMT
One of the most detailed responses to lender questions that I've ever seen, much appreciated MoneyThing |
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bugs4me
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Post by bugs4me on Mar 7, 2019 22:53:51 GMT
Well - at long last a detailed outline loan proposal unlike some platforms that are still carrying on as usual even though confidence in P2P would appear IMO to be at an all time low.
At least MoneyThing have taken on board many of the criticisms towards ** and ** and etc which are still just about managing to operate in the 2013/14 era which is obviously having a contagious effect on other platforms. Whether this is a good proposition is of course entirely dependent upon individual investors sentiment.
With the level of disclosure, it certainly makes any DD far quicker and easier so I think MT are to be applauded for that at the very least.
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Post by bobthebuilder on Mar 8, 2019 0:26:10 GMT
MoneyThing One further question if I may? Given the importance of the main shareholder to the day-to-day operation of the business, as revealed in your answer to question 17, is there any keyman insurance in place to protect lenders should anything happen to him?
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Post by SophieThing on Mar 8, 2019 10:57:21 GMT
Hi bobthebuilder, Your question has been answered at the bottom of the FAQ's just now. In short, yes keyman insurance is in place. Kind regards Sophie |
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