Hmmm, good to see another new borrower, and another UK company that actually appears to make money making stuff. But I do wish a loan secured against wasting assets (in this case, chattels mortgage over production machinery) was structured as amortising rather than interest only.
Note to self: probably wise to exit before term!
Almost always wise to exit before term.
Exiting before the term is wise yes. Exiting before the default requires clairvoyance
Or luck. It's wise to consider the risk profile against elapsed time for each loan. Generally speaking, for an interest-only loan the risk is loaded at the end, especially so when the business is creating cash which is supposed to be accumulating to pay off the principal at the end, or to permit a refinance. They should at least be able to keep up the interest payments. In such cases I reckon it is safe for half the term. More if the interest is borrowed and held by the platform.
And even when they find they cannot pay or refinance the principal at the end, there is just a possibility that the loan may be restructured rather than defaulted, and trading may continue.
There has only ever been one proper default on an Ablrate loan, and that was fully recovered. The container loans were rather unusual.
but blender not a penny of the container loans has been recovered more that 2 years after default and we don't weem any closer to recovery on those.
Yes, sorry, they are defaults but I mean that they had an unusual and totally unpredictable failure mode, which could not be avoided by deciding how long to keep it on the basis of the proposition. I do not wish to comment on the borrower here, but with Ablrate loans I think I can generally rely on the bona fides of the borrowers. Albrate would not be at home to an FC Crappy Scrappy or an FS Whitehaven timber-frame constructor.
Investment through Ablrate involves lending to companies and therefore your capital is at risk and interest/capital payments are not guaranteed if the borrower defaults. The statements made on this forum are provided for information only, are not intended as a financial promotion