criston
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Post by criston on Apr 3, 2020 15:09:57 GMT
Companies have not yet been able to access the Government support scheme.
"A coronavirus loan scheme is to be introduced to cover the cost of salaries and bills will offer loans of up to £1.2m to support small and medium-sized businesses. The Chancellor said: "The government will offer a generous guarantee on those loans, covering up to 80% of losses, with no fees, so that banks can lend with confidence".
Not sure how many of the Assetz loans can be supported by this scheme.
Assetz need to give us some indication of the situation as far as this is concerned.
It appears support is there & losses are covered, albeit difficult for companies to access.
They may need support in the short term, but if they recoup their losses from the taxpayer in the end, Assetz will keep the 0.9% fee.
So are we supporting Assetz or the borrowers.
I originally voted 'A' but have emailed to change it to 'B' until I get clarification, which Assetz accepted.
I have not studied the Government support scheme, so it may be that I have changed my vote because I am ill informed.
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dave4
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Cynical is a hobby not a lifestyle
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Post by dave4 on Apr 3, 2020 16:01:02 GMT
Was wondering on the vote end date timing, any thoughts ?
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criston
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Post by criston on Apr 3, 2020 16:16:31 GMT
Was wondering on the vote end date timing, any thoughts ? Results Monday
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ilmoro
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'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 Apr 3, 2020 18:39:21 GMT
Companies have not yet been able to access the Government support scheme. "A coronavirus loan scheme is to be introduced to cover the cost of salaries and bills will offer loans of up to £1.2m to support small and medium-sized businesses. The Chancellor said: "The government will offer a generous guarantee on those loans, covering up to 80% of losses, with no fees, so that banks can lend with confidence". Not sure how many of the Assetz loans can be supported by this scheme. Assetz need to give us some indication of the situation as far as this is concerned. It appears support is there & losses are covered, albeit difficult for companies to access. They may need support in the short term, but if they recoup their losses from the taxpayer in the end, Assetz will keep the 0.9% fee. So are we supporting Assetz or the borrowers. I originally voted 'A' but have emailed to change it to 'B' until I get clarification, which Assetz accepted. I have not studied the Government support scheme, so it may be that I have changed my vote because I am ill informed. Are you not conflating two different things? The lender fee is clearly to support AC due to a reduction in income. The forbearance vote is to assist borrowers and has no relation to the fee imposition.
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Post by davee39 on Apr 3, 2020 20:18:29 GMT
I cannot see any connection between debt forbearance and Government support schemes.
I interpret it as the taxpayer helping companies with essential payments - staff, suppliers etc, rather than assisting with loan repayments.
The government support is designed to help companies stay afloat, so in the longer term this still benefits A/C lenders.
Assets are already obliged to be fair to borrowers, and even under normal circumstances would allow some arrears to develop before taking action.
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criston
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Post by criston on Apr 3, 2020 21:34:24 GMT
We do not know if Assetz themselves are eligible & have applied for a low interest loan from the Government & they may also also receive 80% cover for any losses.
Most of the borrowers & lenders fees could be bunce for Assetz.
We know Assetz representatives are reading these posts so let's wait for clarification.
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schism
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Post by schism on Apr 4, 2020 17:24:07 GMT
In the present conditions a genuine borrower could easily find themselves in a position where they are unable to pay for the duration of this epidemic through no fault of their own. They may also be able to restart payments shortly after. I'm in this lending business primarily to improve my own position, but a strong second motive is to help SMEs on their perilous journey and provide needed employment for others. Sure, some charlatans will take advantage, but it's ACs job to minimise these. I can't let the odd bad apple spoil the barrel. It's unquestionably A for me. Forbearance is the only sensible option in these conditions IMO. Agree 100% my view too. Can't believe some people are saying borrowers shouldn't have a break when lender don't get one (0.015% monthly fee on live non-defaulted capital) Are they even thinking about this, have they been outside. I went out for a walk tonight around 9PM and I saw 2 cars on the main road to a multi junction round about leading to the mortorway over a 10 minute period. Usally you can't even cross the road there at that time as its spewing with cars and lorries. Only one lorry and one car. Expect borrowers to conduct business when a Govermental lockdown by Law is being enforced? Madness, the only thing that will get enforced is a fire sale and a very small capital return to investors in these conditions. Now is not the time to pull the rug from these businesses, once we return to normal standing by all means light the fire.
I totally agree with the above, from my viewpoint Assetz have done the right things so far. They are doing what I am as a business owner. Trying to figure out a way to come out the other side of this totally unprecedented situation as intact as possible, for the benefit of my employees, suppliers, customers and me, every one in that list is vital.
The only way they are going to do that is by supporting lenders and borrowers, i see option A as giving them the opportunity to help the borrowers hold their projects/businesses intact during this crisis. If that happens and the majority of borrowers come through it then we as lenders have still got some value in the loans.
If Assetz had allowed free reign the cash assets would have gone overnight and that would have been a mess for everyone to cry about. As it stands at the moment im viewing it as positive the way that Assetz are reacting.
A for me.
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