des
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Post by des on Jul 15, 2019 11:27:41 GMT
Monday 15th July 2019 - Loan Launch Details:
Borrower Sector: Entertainment
Amount: upto £500,000.
Term: 48 months (12 months minimum term).
Rate: 13% - Interest and Capital.
Security: Company Debenture, Personal Guarantee from shareholder, Chattel Mortgage over certain assets to be acquired from loan proceeds.
Instant Returns: Enabled.
Loan Launch: 11am – 15th July 2019 (READ ONLY).
Loan Live: 2pm – 15th July 2019.
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blender
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Post by blender on Jul 15, 2019 11:36:59 GMT
The fees to be charged by the platform look quite low for this one. It's good to start with a positive comment.
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withnell
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Post by withnell on Jul 15, 2019 11:37:14 GMT
I struggle with some of these loans to understand why the high net worth shareholder doesn't fund the loan themselves, at a much lower rate?
In this example, if the shareholder is worth a net 6m there must be headroom to borrow 500k if the asset base is solid?
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IFISAcava
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Post by IFISAcava on Jul 15, 2019 11:40:09 GMT
Seems like a largely unsecured loan. Equipment will be 200% LTV initially. It's probably large enough to be worth enforcing a personal guarantee if it came to it. It's amortising at least.
I'll put in a modest sum based largely on ABL's reputation and my positive experience with the platform to date.
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blender
Member of DD Central
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Post by blender on Jul 15, 2019 11:56:31 GMT
I struggle with some of these loans to understand why the high net worth shareholder doesn't fund the loan themselves, at a much lower rate? In this example, if the shareholder is worth a net 6m there must be headroom to borrow 500k if the asset base is solid? You do wonder if the anonymous HNW shareholder/guarantor might also be providing a guarantee for anything else. I wonder if the 6m is net of contingent liabilities. May also include the odd intangible business asset? No way we can value it.
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Post by Deleted on Jul 15, 2019 12:01:35 GMT
From my brief read, it looks like every time they launch a new venture it makes the company break-even, but year two they make a good profit. Since so much of the profit comes from people like St James as long as the company keeps bringing in high net wealth individuals the money will keep flowing. So the reason for the loan is to accelerate the model's growth before they get any competitors (after all it is not ring-fenced in any way) while the giant tents are not really going to be a very resalable asset (they depreciate pretty fast) but would be available for the extra loans for garden parties in the Northern summer season.
Does it make sense? 1) the key market, the wealthy, does not stop partying in a financial downturn. 2) the model will work in Dublin as well as Northern UK. 3) not sure it will work in the Gulf as well as it might in say Germany, but I guess their sponsors want to access the Gulf.
Is there a risk? 1) Competition, this is copyable 2) High net worth individuals who need to borrow £500k may make a lot of money out of having a lot of fingers in many pies but can also lose the lot. So it depends on what else he is investing in. I begin to believe we should be told stuff like that. So high net worth individual with these assets that are not mortgaged (list enclosed).
3) Other assets are not worth a hill of beans, if the management muck up one party the news will spread. So they "bet the farm" every time.
Will I invest? Yes, it is risky but if all goes well they will pay back fast. Now the mystery backer....
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Post by thingy on Jul 15, 2019 12:31:51 GMT
Am I right in thinking that one of the named directors has/had something to to with B***k***** which is involved with other loans on this platform? Pubs and a brewery.
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Jul 15, 2019 12:38:47 GMT
Am I right in thinking that one of the named directors has/had something to to with B***k***** which is involved with other loans on this platform? Pubs and a brewery. The current CH listed sole shareholder/PSC has involvement in a significant number of the loans on the platform, including the ones you allude to.
If he isnt the sole shareholder/PSC as the proposal implies then CH should have been updated within 28 days - possibly only a recent change given the new appointments. (Edit - actually two months ago, just late filings)
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Post by Deleted on Jul 15, 2019 12:44:39 GMT
"ooh noo", puts most of his wad back in his wallet.
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Post by Badly Drawn Stickman on Jul 15, 2019 12:50:28 GMT
"ooh noo", puts most of his wad back in his wallet. Only most? It's just walking on a high wire with a barbed wire safety net, interesting to watch maybe but not something I fancy doing.
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IFISAcava
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Post by IFISAcava on Jul 15, 2019 12:50:34 GMT
Am I right in thinking that one of the named directors has/had something to to with B***k***** which is involved with other loans on this platform? Pubs and a brewery. oops
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nick
Member of DD Central
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Post by nick on Jul 15, 2019 13:09:43 GMT
Am I right in thinking that one of the named directors has/had something to to with B***k***** which is involved with other loans on this platform? Pubs and a brewery. The current CH listed sole shareholder/PSC has involvement in a significant number of the loans on the platform, including the ones you allude to.
If he isnt the sole shareholder/PSC as the proposal implies then CH should have been updated within 28 days
It is worth noting that in respect of changes in shareholdings, CH only needs to be notified on the next annual confirmation statement where all changes in shareholdings are reported. The company is required to immediately update its shareholder register which is public but is normally held in physical form at the company's registered address and is not held or accessible via CH.
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macq
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Post by macq on Jul 15, 2019 13:10:42 GMT
doing a roll call of all the other directorships at CH i thought i had clicked back to my account page on ABL by mistake
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Post by ablrate on Jul 15, 2019 13:17:24 GMT
Mr K*** is an accountant. We also utilise him for monitoring on some companies that have loans with us, hence why he is on number of loans from Ablrate.
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Post by darren on Jul 15, 2019 13:17:53 GMT
Is it normal for the balance sheet forecast to not include the loan liability (assuming it doesn't)?
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