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Post by jasonnewman on Apr 5, 2020 22:41:38 GMT
Right there is £104m of loans due to be repaid in the next 4 months...……
Surely that should clear all the queues providing they get back all the cash? So it is a case of waiting for time to pass and the money to come in naturally?
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Post by jasonnewman on Apr 5, 2020 22:43:59 GMT
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Post by Harland Kearney on Apr 5, 2020 22:50:06 GMT
Why are you pinging them like mad? Because it is a Sunday, normally from what I've seen, when funds are paid for a loan they distubute it to lenders next working day. Yes many loans will be redeemed over the coming months - 180 days. Yes investors will likely see alot of their capital back assuming a majority of those loans repay or partially repay over the coming months. This is what most investor have been saying, but we have been squashed out by spam and panic mongering spam. The lock of AA withdrawals doesn't mean the loan book is suddenly valueless. Its when defaults hit the roof in normal market conditions and lenders run for the exit that there is serious cause for alarm. I'd say it be a good 6 months until a picture is crystal clear if the Loan book is destroyed, or we have seen a grand majority of loans repaid and many more loans being fulfilled. Eventual removeal of lender fees. That may very well still happen (platform death), but my bet is that it won't happen, because AC took steps to prevent that from occuring in shocking fasion as well as fee's to ensure the platform is upheld until those loans can begin being repaid, re-financed or pursued.
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Post by jasonnewman on Apr 5, 2020 22:54:00 GMT
Why are you pinging them like mad? Because it is a Sunday, normally from what I've seen, when funds are paid for a loan they distubute it to lenders next working day. But the money came in 2nd April - today is 5th April, how comes the cash has not gone out next working day?
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Post by Harland Kearney on Apr 5, 2020 22:57:14 GMT
I do not know, but I know in the other thread they saw a increase in cash retention. There could be many reasons for this, we do not know.
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Post by jasonnewman on Apr 5, 2020 23:01:10 GMT
There are some v large upcoming loans due to drawndown in April - How is AC planning to fund these?
Are they going to use cash repaid from existing loans to fund these new loans? Surely not....
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Post by Harland Kearney on Apr 5, 2020 23:05:46 GMT
Other lending sources outside of retail investors im thinking. They have pull for a large amount of institutional, Govermental & still alot of the cash in the loans being repaid is being reinvested into the AA's.
AC has always used other funding sources to contribute to funding loans. Which is again, a reason making them fairly robust for the coming months.
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Mikeme
Member of DD Central
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Post by Mikeme on Apr 6, 2020 7:46:32 GMT
There are some v large upcoming loans due to drawndown in April - How is AC planning to fund these? Are they going to use cash repaid from existing loans to fund these new loans? Surely not.... I am sorry if you put too much into P2P . Many did including me. However we made that decision. In the same way that I am sorry for borrowers borrowed to fund growth and by law were forced to PAUSE trading. As for AC they have made decisions that try to balance as much as possible both sides. They will carefully watch EVERY borrower and those that should be in a position to keep up payments, even if funded from government help. There will be many that for a period of time CANNOT pay. If as some suggest we put pressure on them and they collapse that is a much bigger risk to our capital. Complain and threaten as much as we like at this time they will not change. Time will tell if they are right but the fact that our government looks as if they will use AC to support businesses is a hopeful sign. I stayed in a family owned hotel that had been run by a family for many years and borrowed from us for expansion. They are currently closed but will reopen when this passes and will for sure repay. If we however it is done force sale they will be left with nothing and we will lose more than if we give time. I quote Happy We all need to think about what is going on outside our homes right now: no planes in the sky, no cars on the roads, shops, restaurants, hair salon, bars, cafes and business closed and empty everywhere. Shut down building sites where they can't even work if they wanted because every builders merchant in the country is closed. My young children ask me about what all this will mean to us and my answer is, I truly do not know. Nobody has ever seen or even read of a global event like this in modern times. This global crisis, and it really is a crisis, is an unprecedented event, the effect of which could yet prove to be devastating for all of our financial wellbeing, not just for this generation but for many more to follow us. The actions Stuart and his team are taking show a level of prudence and caution that gives me confidence in their management, not of their reckless disregard for a commitment made in what now might as well have been made in another dimension. Stay safe everyone and look after those you love.
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alanh
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Post by alanh on Apr 6, 2020 7:56:21 GMT
The cash from redemptions is money due to us, the lenders. If Assetz decide that some of this is needed to fund existing projects in order to get a better outcome for us then fine, we will have to trust their judgement on that. If however this cash is used to fund completely new loans then it will indicate that they have no intention of ever returning the cash, but rather are only interested in prolonging the cashflows into their own pockets for as long as possible until the music stops.
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alender
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Post by alender on Apr 6, 2020 8:37:37 GMT
Other lending sources outside of retail investors im thinking. They have pull for a large amount of institutional, Govermental & still alot of the cash in the loans being repaid is being reinvested into the AA's. AC has always used other funding sources to contribute to funding loans. Which is again, a reason making them fairly robust for the coming months. I would suspect government money to go to new borrowers which is where AC is probably looking for future lending streams outside the current structure (which is now probably fatally wounded) but will have to wait and see. Perhaps institutional investors will put some money in but these tend to be canny investors, will only pick the best loans and get better terms than retail investors (will not accept pool for their repayments or repayments diverted where AC chooses fit), they will also have a lot opportunities elsewhere, take a look at the yield on Shell.
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alender
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Post by alender on Apr 6, 2020 8:43:07 GMT
There are some v large upcoming loans due to drawndown in April - How is AC planning to fund these? Are they going to use cash repaid from existing loans to fund these new loans? Surely not.... They will carefully watch EVERY borrower and those that should be in a position to keep up payments, even if funded from government help. There will be many that for a period of time CANNOT pay. If as some suggest we put pressure on them and they collapse that is a much bigger risk to our capital. This can only happen if vote B wins, Vote A as stated gives forbearance to borrowers so no repayments/interest will be chased, it lets AC of the hook to spend time on new business areas instead of doing their day job.
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Post by scepticalinvestor on Apr 6, 2020 9:01:17 GMT
The cash from redemptions is money due to us, the lenders. If Assetz decide that some of this is needed to fund existing projects in order to get a better outcome for us then fine, we will have to trust their judgement on that. If however this cash is used to fund completely new loans then it will indicate that they have no intention of ever returning the cash, but rather are only interested in prolonging the cashflows into their own pockets for as long as possible until the music stops.
This is the crux of the matter.
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Post by jasonnewman on Apr 6, 2020 9:03:09 GMT
The cash from redemptions is money due to us, the lenders. If Assetz decide that some of this is needed to fund existing projects in order to get a better outcome for us then fine, we will have to trust their judgement on that. If however this cash is used to fund completely new loans then it will indicate that they have no intention of ever returning the cash, but rather are only interested in prolonging the cashflows into their own pockets for as long as possible until the music stops.
This is the crux of the matter.
Can one of you provide clarity on what you are planning to do with repaid loans - I am an investor, this is MY CASH and I WANT YOU to pay this CASH back to me.
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cb25
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Post by cb25 on Apr 6, 2020 9:04:23 GMT
This is the crux of the matter.
Can one of you provide clarity on what you are planning to do with repaid loans - I am an investor, this is MY CASH and I WANT YOU to pay this CASH back to me. Do you know of any new loans? I don't think there have been any in weeks (in fact I asked Livechat about this a week/two ago, but they were non-committal). Most recent loan (highest loan number) is #1279 which shows the Arrangement Fee (see Repayments tab) was paid 16 Mar 2020.
Tagging alanh @scepticalinvestor
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Post by jasonnewman on Apr 6, 2020 9:37:17 GMT
Looks at the upcoming loans section
There are £3.6m loans that are due to be drawndown in April
How are AC planning to fund these?
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