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Post by stuartassetzcapital on May 6, 2020 11:14:02 GMT
In theory - can CBIL funds be used to fund further tranches on current loans? Yes that is what we understand.
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Post by stuartassetzcapital on May 6, 2020 11:59:40 GMT
I am not yet 100% convinced that property development tranches would be eligible. “ Does CBILS require that eligible companies generate a certain percentage of annual turnover from trading activities? An eligible SME must generate more than 50% of its income from trading – the sale of goods or services. CBILS is not designed to support shell companies. Registered charities and further education establishments are exempt from this requirement. Is a company that derives income from property eligible for CBILS? If it derives more than 50% of its income from commercial activity that generates turnover, whether or not this is with the intention of making a profit. This includes real-estate SMEs that derive income from property (including real-estate investment companies and housebuilders)” They most certainly are permitted. As part of our accreditation process it became clear the rules needed to permit this. CBILS is son of EFG and that was most unfriendly to property. CBILS is not. We are a major funder to SME housebuilders and can do a lot of good using this facility and so it needs to support development funding.
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ian
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Post by ian on May 6, 2020 12:02:33 GMT
I am not yet 100% convinced that property development tranches would be eligible. “ Does CBILS require that eligible companies generate a certain percentage of annual turnover from trading activities? An eligible SME must generate more than 50% of its income from trading – the sale of goods or services. CBILS is not designed to support shell companies. Registered charities and further education establishments are exempt from this requirement. Is a company that derives income from property eligible for CBILS? If it derives more than 50% of its income from commercial activity that generates turnover, whether or not this is with the intention of making a profit. This includes real-estate SMEs that derive income from property (including real-estate investment companies and housebuilders)” They most certainly are permitted. As part of our accreditation process it became clear the rules needed to permit this. CBILS is son of EFG and that was most unfriendly to property. CBILS is not. We are a major funder to SME housebuilders and can do a lot of good using this facility and so it needs to support development funding. Will this ensure redeemed capital in the Access accounts is now transferred to the cash accounts of investors who were participants on those loans ?
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SteveT
Member of DD Central
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Post by SteveT on May 6, 2020 12:11:09 GMT
There will be an update on this when the trading market opens. The discounted Access Account trading market announcement already stated that its launch would see a switch to distributing cash for Par withdrawal requests on a pro-rata basis. It makes no sense changing this to "First come, first served" again (and triggering another wave of unhappy campers) until / unless "normal market conditions" are restored, ie. there's sufficient cash buffer in the Access Accounts to support instant withdrawals again. Even in this scenario, sticking formally with pro-rata withdrawals would still make more sense (and precisely zero practical difference in "normal market conditions").
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ian
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Post by ian on May 6, 2020 12:16:02 GMT
Presently the sum of my loans in my access accounts are less than the total invested - I have assumed this is cash. Will this now be freed up to investors for investors to withdraw ??
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ian
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Post by ian on May 6, 2020 12:18:02 GMT
Secondly - when will the prorata basis kick in? Can this be activated immediately this would appease a lot of investors who presently feel they are being unfairly discriminated against.
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jlend
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Post by jlend on May 6, 2020 12:27:24 GMT
Very positive development stuartassetzcapitalHave you been given any indication by the BBB how long the CBIL scheme will be available? Will AC be able to unfurlough any staff now? |
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Post by gobuchul on May 6, 2020 13:19:56 GMT
... Clearly we would appreciate it if some people saw fit to cancel their withdrawal requests as that would speed retail investment funding new loans again ... Understood, but how about giving us the option to move from 90DAA to QAA or (90DAA to 30DAA with a 60 day wait time) to de-risk the situation? At the moment I have no choice but a full withdrawal and re-invest.
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iann
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Post by iann on May 6, 2020 13:42:33 GMT
... Clearly we would appreciate it if some people saw fit to cancel their withdrawal requests as that would speed retail investment funding new loans again ... Understood, but how about giving us the option to move from 90DAA to QAA or (90DAA to 30DAA with a 60 day wait time) to de-risk the situation? At the moment I have no choice but a full withdrawal and re-invest. It would also be good for it to be in all directions within the AAs (with suitable differential notice periods where applicable) without having to withdraw and re-invest.
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Post by closetotheedge on May 6, 2020 14:26:43 GMT
Would be happy to move my holding from 90 day to 30 day and leave it there if that option were given and it offered a better return than the QAA.
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Post by Ace on May 6, 2020 14:34:13 GMT
Understood, but how about giving us the option to move from 90DAA to QAA or (90DAA to 30DAA with a 60 day wait time) to de-risk the situation? At the moment I have no choice but a full withdrawal and re-invest. It would also be good for it to be in all directions within the AAs (with suitable differential notice periods where applicable) without having to withdraw and re-invest. You can already set the destination account to withdraw to. I haven't tested destinations other than the cash account, but don't see why it shouldn't work.
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dead-money
Rocket to the Moon
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Post by dead-money on May 6, 2020 14:49:22 GMT
FYI, once a withdrawal is in the queue/pool/whatever changing the destination account doesn't always seem to register.
You might need to cancel the withdrawal, serve your notice time and go to the back of the queue.
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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 May 6, 2020 15:46:23 GMT
Presently the sum of my loans in my access accounts are less than the total invested - I have assumed this is cash. Will this now be freed up to investors for investors to withdraw ?? This is the cash element which in normal times allows rapid withdrawals and funding of tranches/new loans. It is being released to investors but only where there is surplus over & above the minimum operating levels of the account (MOL). Only AC have the full picture of the amount of cash element that the account needs in order to treat all investors fairly by meeting withdrawal requests while maintaining a cash buffer/maintaining the functioning of the account for the benefit of the majority of the investors who are remaining.
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dovap
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Post by dovap on May 6, 2020 16:04:38 GMT
great stuff - can this be used to clear the zombie property and gbba accounts as well.
seems no reason not to reinstate the old queue and start processing those very few withdrawals from 'quick' access
and just in time for bank holiday eased lockdown frollicking
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ian
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Post by ian on May 6, 2020 17:50:52 GMT
Will this news mean a stop to forbearance given existing borrowers can now access funds underwritten by the government  |
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