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Post by pmac67 on May 26, 2019 10:49:25 GMT
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! Yes, yes. Almost always wise to exit before term.
Exiting before the term is wise yes. Exiting before the default requires clairvoyance
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blender
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Post by blender on May 26, 2019 20:43:25 GMT
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. Puddings are best while they are still fresh.
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ptr120
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Post by ptr120 on May 26, 2019 20:53:08 GMT
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.
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blender
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Post by blender on May 27, 2019 7:48:18 GMT
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.
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Greenwood2
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Post by Greenwood2 on May 27, 2019 8:15:23 GMT
Could have done with a formal valuation of equipment. As currently installed and operating, or potential liquidation sale value?! We all know that "book value" is unlikely to be anything less than a straight-line depreciation of the original purchase price... Liquidation sale value may be very low when the potential buyer factors in the cost of dismantling, moving and reassembling the equipment. Been caught by one like that before.
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Post by PierToPier on Jun 1, 2019 20:29:15 GMT
A bit of a newbie questions ... but I'll throw it out there anyway.
This loan was actioned on the 31st of May, so can I assume that payments will be made on the last day of each month? (28th or 29th Feb, 30th or 31st as appropriate)
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Post by df on Jun 1, 2019 21:00:29 GMT
A bit of a newbie questions ... but I'll throw it out there anyway. This loan was actioned on the 31st of May, so can I assume that payments will be made on the last day of each month? (28th or 29th Feb, 30th or 31st as appropriate) Yes. You can see the schedule by clicking on 'repayments' tab.
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p2pmark
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Post by p2pmark on Jan 2, 2020 13:50:30 GMT
Latest accounts available on Companies House for those that are interested. I didn't see anything alarming, but I'm no accountant.
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brush
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Post by brush on Sept 2, 2020 8:49:11 GMT
Ablrate, anybody mentioned to this company that interest payments are on the 30th of each month? This also applies to 50% payments?
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Post by PierToPier on Oct 6, 2020 10:11:53 GMT
ablrate do you have any news on this borrower and the September payment, which like nearly all of their payments is late. I get the feeling they are struggling in these Covid times.
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Post by ablrate on Oct 7, 2020 9:04:15 GMT
ablrate do you have any news on this borrower and the September payment, which like nearly all of their payments is late. I get the feeling they are struggling in these Covid times. We have been in contact with them, yes they are finding it tough as many businesses in the sector are but we have an agreement for payment and we expect them to keep to it.
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brush
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Post by brush on Nov 3, 2020 17:16:11 GMT
Only 3 of the last 14 payments have been on time, 5 late before Covid and 5 late with interest only. Patience is the key here.
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markyg61
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Post by markyg61 on Nov 10, 2020 13:00:28 GMT
ablrate, 11 days late, any sign of 123 paying what's owed ?
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mw
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Post by mw on Nov 28, 2020 9:34:30 GMT
Think we're due 2 x months interest at 7% (equal to one full month) this month on the 30th aren't we? Doesn't reflect in the due payments area though.
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brush
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Post by brush on Dec 4, 2020 17:18:11 GMT
Ablrate you have treated this company very kindly, they seem to be taking the proverbial. Time to put your foot on their throat.
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