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Post by dan1 on Mar 15, 2019 19:00:42 GMT
Interesting new loan in which a retailer doesn't physically take/have possession of the items on sale (don't wish to say anymore for obvious reasons). I suspect the purchaser is none the wiser but could you imagine the situation if the platform or retailer were to fail in the intervening period between a purchasers payment and delivery of the high end item?
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Post by investor1925 on Mar 16, 2019 10:26:16 GMT
The on-line retailer or platform failing doesn't worry me at all.
It could quite easily happen to any on-line purchase, from any other retailer, that's why we use credit cards as opposed to debit cards/bank transfers etc.
The thing that occurs is that they are buying watches at 60% retail, then paying UB & us 10%+ for the privilege.
That doesn't leave them much of a margin to make when selling them, not in normal retail circles anyway, where margins are usually more than this.
Anyone got any more succinct views on this ?
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picnicman
Member of DD Central
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Post by picnicman on Mar 16, 2019 10:56:31 GMT
Interesting new loan in which a retailer doesn't physically take/have possession of the items on sale (don't wish to say anymore for obvious reasons). I suspect the purchaser is none the wiser but could you imagine the situation if the platform or retailer were to fail in the intervening period between a purchasers payment and delivery of the high end item? - yes a new concept (your obvious reasons are not obvious to me?? - if you want to PM me/or not!), but UB will still have possession of the security but just in a different way. One assumes UB are not silly enough to pay for the goods before they are in their possession?!. Given that, these assets are no more risky than any other watches on the platform in my opinion re LTV - except I cannot tell whether this is a non protected loan - I assume so because the rate is 0.8%, but it would have been nice to have it clearly stated. Will be interesting to see how quickly it fills on Monday, given that deposits are likely to be needed and the office is closed over the weekend?  Cheers P
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picnicman
Member of DD Central
Posts: 238
Likes: 215
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Post by picnicman on Mar 16, 2019 11:01:33 GMT
The on-line retailer or platform failing doesn't worry me at all. It could quite easily happen to any on-line purchase, from any other retailer, that's why we use credit cards as opposed to debit cards/bank transfers etc. The thing that occurs is that they are buying watches at 60% retail, then paying UB & us 10%+ for the privilege. That doesn't leave them much of a margin to make when selling them, not in normal retail circles anyway, where margins are usually more than this. Anyone got any more succinct views on this ? - no   ! - I know little of retail margins, but considering they are brand new watches, I would have thought a margin of 30% would be reasonable - happy to be told I am talking complete tosh. Do not know if you invest on MT, but if you do, I cannot see the difference between these watches and the prestige cars on MT. Cheers P I have taken a 'small' bite for what it is worth.
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Post by dan1 on Mar 21, 2019 22:11:44 GMT
Interesting new loan in which a retailer doesn't physically take/have possession of the items on sale (don't wish to say anymore for obvious reasons). I suspect the purchaser is none the wiser but could you imagine the situation if the platform or retailer were to fail in the intervening period between a purchasers payment and delivery of the high end item? - yes a new concept (your obvious reasons are not obvious to me?? - if you want to PM me/or not!), but UB will still have possession of the security but just in a different way. One assumes UB are not silly enough to pay for the goods before they are in their possession?!. Given that, these assets are no more risky than any other watches on the platform in my opinion re LTV - except I cannot tell whether this is a non protected loan - I assume so because the rate is 0.8%, but it would have been nice to have it clearly stated. Will be interesting to see how quickly it fills on Monday, given that deposits are likely to be needed and the office is closed over the weekend? Cheers P Apologies P, forgot to reply. My obvious reasons were just that it may be possible to track down the borrower (I haven't tried and was probably being overly cautious). In terms of the risks to lenders then I agree and can't see a great deal wrong with this proposition, brand new watches direct from the supplier with Unbolted having possession of them. If you can't tell if it's protected then it's safe to assume it's not but I agree it's not clear enough on the site (I don't invest in unprotected so don't tend to check the new loans page). There still appears to be £25k available but more surprisingly there's still availability on a loan protected by the provision trust.
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Cheers P
! - I know little of retail margins, but considering they are brand new watches, I would have thought a margin of 30% would be reasonable - happy to be told I am talking complete tosh. Do not know if you invest on MT, but if you do, I cannot see the difference between these watches and the prestige cars on MT. Cheers P