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Post by GSV3MIaC on Dec 30, 2019 20:55:31 GMT
So unless the documents show this to be a real dog, can we have a BID LIMIT for at least 24 hours, please, ablrate . Something reasonable like £1k or £2k, such that it isn't all sold in the first hour. Ideally not even in the first day.
If not, I'm outta here, sorry.
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blender
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Post by blender on Dec 31, 2019 8:42:58 GMT
So unless the documents show this to be a real dog, can we have a BID LIMIT for at least 24 hours, please, ablrate . Something reasonable like £1k or £2k, such that it isn't all sold in the first hour. Ideally not even in the first day.
If not, I'm outta here, sorry.
Market conditions in p2p have changed radically. You may find that Ablrate do not think bid limits necessary at this time. Whatever they do, and I don't care this time, please consider giving that first day test of their decision.
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Post by GSV3MIaC on Dec 31, 2019 9:56:51 GMT
It may not be necessary, but the downside of having it in place, unneeded, is minimal.
Without it it only takes one whale to eat the whole lot at minute 5, on the assumption (whether right or wrong) they can resell on the SM at a profit.
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blender
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Post by blender on Dec 31, 2019 13:25:40 GMT
It may not be necessary, but the downside of having it in place, unneeded, is minimal.
Without it it only takes one whale to eat the whole lot at minute 5, on the assumption (whether right or wrong) they can resell on the SM at a profit. There is a downside, in that if the take-up is artificially slow it makes the loan appear unpopular, and that in turn discourages others from lending. A loan taken up quickly provides a positive endorsement of the platform, which would be helpful in the current p2p environment - which seems to lack whales and the larger fish. The days of the flipper have gone. The trouble with low limits is that the lenders who might wish to lend £10k + or so (not me) will consider it not worth the bother of doing the due diligence. And many of the smaller lenders will have been scared off by the new FCA rules. And it's a quiet time. Ablrate know more about their platform dynamics than we do. I don't think we should be making the decisions for them.
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Post by GSV3MIaC on Dec 31, 2019 16:10:16 GMT
Historically they have gotten it wrong.. At least for me. And I don't consider 24 hours to fill a loan is going to look unpopularly slow
. As for discouraging 10k punters from looking at it at all, I would think that having it all sold to one such, even as the starting whistle blows, is even more discouraging.
Yep, it is entirely ablrate 's call. I am just suggesting that they need to not get it wrong again. I expect this one to be very popular, unless the documents look really canine.
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blender
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Post by blender on Dec 31, 2019 16:42:25 GMT
Yes they have made some mis-judgements and I am sure that lenders' opinions will be valued. Yes, 24 hours to fill is not slow at all. We clearly have different expectations from this next launch, and I hope you are right. I think it will take a few days to fill even without bid limits. Surely people are not blinded by 15%? There is no mention of any tangible and saleable assets, apart from some stock which is presumably going to be retailed. It looks rather like an FC C or D loan to me - but we will see.
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IFISAcava
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Post by IFISAcava on Dec 31, 2019 17:04:46 GMT
Yes they have made some mis-judgements and I am sure that lenders' opinions will be valued. Yes, 24 hours to fill is not slow at all. We clearly have different expectations from this next launch, and I hope you are right. I think it will take a few days to fill even without bid limits. Surely people are not blinded by 15%? There is no mention of any tangible and saleable assets, apart from some stock which is presumably going to be retailed. It looks rather like an FC C or D loan to me - but we will see. Or one that would usually go on Huddle; we shall see the details. I'm with you - nothing is filling rapidly at the moment. And 15% means only one thing - higher risk.
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ptr120
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Post by ptr120 on Jan 2, 2020 13:50:25 GMT
The borrowing proposal is live - what are your thoughts?
I'd prefer if a debenture over all of the borrowers businesses were offered. Too much opportunity for stock to shift from one business to another. Also, what is to stop funds being spend on things other than stock? Could drawdown be dependent on invoices being seen from suppliers. I have to admit that it does seem like a very high sum to need for stocking of shoes, for a fairly long period of time - particularly considering the equity investment.
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agent69
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Post by agent69 on Jan 2, 2020 13:57:24 GMT
The borrowing proposal is live - what are your thoughts? £2m turn over this year. That's not bad for2 days work
Not a fan of stock being offered as security (still haven't found those Irish sofas yet), or for that matter work in progress or the debtor book. All have the potential to evaporate when the going gets tough.
I'll be giving this a miss.
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p2pmark
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Post by p2pmark on Jan 2, 2020 14:02:02 GMT
The security is not watertight, but the company appears to be profitable which is obviously a big plus.
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blender
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Post by blender on Jan 2, 2020 15:44:43 GMT
It's quite amusing to think of the 'capital equipment' category including stocks of high-end ladies shoes. The weakness is the security, imo, but if you consider it as an unsecured loan it's not that bad. Ablrate's fees are not onerous at 5% up front and .33% pm, and it's amortising over four years which gets some capital back while keeping the payments reasonable. The business is established and profitable and some women are not going to stop buying silly shoes - even after Brexit. Only the poor people will buy clogs. I like the £250k equity. Given that the loan only needs to get to £250k (or does it?) it should get there steadily. Just not really the kind of business I would personally choose.
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ptr120
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Post by ptr120 on Jan 2, 2020 15:49:48 GMT
I wonder what there is to stop the new director from withdrawing their equity injection as a loan once the loan has drawn down?
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macq
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Post by macq on Jan 2, 2020 16:04:30 GMT
story in the Telegraph from a couple of years back about smash and grab robbers including a raid on this shop with a few/some handbags worth £38,000 so don't think it will buy that much stock?
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blender
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Post by blender on Jan 2, 2020 16:10:06 GMT
I wonder what there is to stop the new director from withdrawing their equity injection as a loan once the loan has drawn down? I think it is the existing director who may wish to realise some of his value in the business. There will be an agreement between them which should cover such options, but the new director looks to be the one driving the expansion. You have to rely on Ablrate's assessment, and supervision of the loan.
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agent69
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Post by agent69 on Jan 2, 2020 17:05:07 GMT
Not exactly flying off the shelf.
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