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Post by oppsididitagain on May 6, 2020 18:08:17 GMT
To free up liquidity, don't we want/need companies already with debt on AC to switch to CBILS, and make capital repayments to AC ?
All I'm reading is a benefit to AC not to us (in the short term)- CBILS will fund future tranches, pay all the fee's AC would usually charge, and have minimal risk of default. The new loans written are only available to institutional investors not retail. Not sure how we will benefit in the near term, unless existing debt is paid down ?
I hope AC will drop the annual fee's if they start to fill CBILS loans.
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daveb
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Post by daveb on May 6, 2020 20:20:36 GMT
It certainly sounds positive. Stuart, is it clear whether HMG intends a company that is affected by cornoavirus to be able to take out one of these loans with the purpose of repaying an existing loan to the platform, or whether it is only interested in loans to companies not at present borrowing money but needing it to tide them over the next year? You could imagine the govt. might not want to take on providing the loan to a company that already has one, particularly if the platform/lenders are showing forbearance.
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Post by lendinglawyer on May 6, 2020 20:58:47 GMT
From FAQs on BBB website:
Can the CBIL Scheme be used to refinance an existing commercial facility?
You can, in certain circumstances, use a CBIL Facility to refinance existing debt. For example, where you are seeking to put your business on a more stable financial footing and/or improve your working capital position, then, in principle, a CBIL Facility could be provided. However, you will need to go through the Application Process in relation to a CBIL Facility and, to be eligible, you will need to fulfil the Eligibility Criteria.
Refinancing can be undertaken with or without an increase in the original borrowing. Any refinancing will be treated as a new facility and will be eligible for a CBIL Facility only where all Eligibility Criteria are fulfilled.
When using a CBIL facility to re-finance an existing commercial facility with the same lender, the lender will be subject to certain limits. If the existing debt is help with another lender to the one you are seeking to obtain a CBIL facility to refinance that debt, these lender limits no longer apply.
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littleoldlady
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Post by littleoldlady on May 6, 2020 21:37:35 GMT
If the existing debt is help with another lender to the one you are seeking to obtain a CBIL facility to refinance that debt, these lender limits no longer apply. held
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Post by gravitykillz on May 7, 2020 20:05:33 GMT
Well at least we are more confident assetz will still exist in June 2020.
Unlike some of the other platforms!
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dead-money
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Post by dead-money on May 18, 2020 13:21:15 GMT
stuartassetzcapital following today's update to shareholders could you post the same here and/or on AC's website blog for lenders information. Thanks
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Mikeme
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Post by Mikeme on May 18, 2020 13:37:22 GMT
stuartassetzcapital following today's update to shareholders could you post the same here and/or on AC's website blog for lenders information. Thanks Was this update for seeders if so how did you get it?
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ilmoro
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Post by ilmoro on May 18, 2020 13:37:48 GMT
stuartassetzcapital following today's update to shareholders could you post the same here and/or on AC's website blog for lenders information. Thanks There is also some interesting stuff in the discussion thread relating to this if you haven't seen it.
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dead-money
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Post by dead-money on May 18, 2020 13:55:12 GMT
stuartassetzcapital following today's update to shareholders could you post the same here and/or on AC's website blog for lenders information. Thanks Was this update for seeders if so how did you get it? Need to own one share in AC.
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Post by stuartassetzcapital on May 18, 2020 13:56:25 GMT
Following our accreditation for CBILS government guaranteed lending, our four initial institutional funding lines are in progress. We are targeting commencing CBILS lending at the end of the month and there is much to do. Nonetheless our legal team is experienced in this matter and this speed is possible.
We will be funding both Commercial Mortgages and Development Loans - the latter in particular is not common in CBILS lenders and we could see substantial demand for the development funding as we can only see one other lender under CBILS covering this loan type. CBILS is originally derived from the old EFG government guaranteed loan structure and that was not friendly to property backed lending. We lobbied for that to change and it has which allows substantial support to what would have otherwise been under served SME businesses making a substantial contribution to GDP.
We can fund both new borrowers and also support existing borrowers.
Lenders are not allowed to have retail investment directly in CBILS loans but it is possible indirectly. We as a company are required to participate to a degree in this lending and therefore our shareholders and other funders may participate that way. We are planning a new funding round shortly to allow a further increase in capital to be available to us to scale our operations going forwards and into next year, through CBILS and beyond.
We will provide more news soon.
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dead-money
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Post by dead-money on May 18, 2020 13:56:48 GMT
stuartassetzcapital following today's update to shareholders could you post the same here and/or on AC's website blog for lenders information. Thanks There is also some interesting stuff in the discussion thread relating to this if you haven't seen it. Yep, definitely. This bit.
"We as a company are required to participate to a degree in this lending and therefore our shareholders and other funders may participate that way. We are planning a new funding round shortly to allow a further increase in capital to be available to us to scale our operations going forwards and into next year, through CBILS and beyond."
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Post by oppsididitagain on May 19, 2020 8:05:02 GMT
Following our accreditation for CBILS government guaranteed lending, our four initial institutional funding lines are in progress. We are targeting commencing CBILS lending at the end of the month and there is much to do. Nonetheless our legal team is experienced in this matter and this speed is possible. We will be funding both Commercial Mortgages and Development Loans - the latter in particular is not common in CBILS lenders and we could see substantial demand for the development funding as we can only see one other lender under CBILS covering this loan type. CBILS is originally derived from the old EFG government guaranteed loan structure and that was not friendly to property backed lending. We lobbied for that to change and it has which allows substantial support to what would have otherwise been under served SME businesses making a substantial contribution to GDP. We can fund both new borrowers and also support existing borrowers. Lenders are not allowed to have retail investment directly in CBILS loans but it is possible indirectly. We as a company are required to participate to a degree in this lending and therefore our shareholders and other funders may participate that way. We are planning a new funding round shortly to allow a further increase in capital to be available to us to scale our operations going forwards and into next year, through CBILS and beyond. We will provide more news soon. Hi Stuart, Sounds great for the platform and directors, more fee's more profit with a lot lower risk for AC. However, am I right in saying, we as retail lenders can't invest directly in these low risk loans, yet you have cut the interest rates for retail investors and our liquidity has been reduced dramatically. WE/US the lenders who have been investing/funding the platform are the ones being penalised. Please understand this. Recently I have been asked via the platform to vote on a few loans that have applied and been successful for CBILS loans. The general theme is , they want us to change the terms on the security we hold on these companies,( the bank issuing the CBILS wants to be above us in hierarchy of debt ranking) yet the CBILS will not reduce our exposure to the current loans, or monies from the CBILS will not be used to pay down the outstanding loan with AC, which will free up liquidity. So going forward what will be done to help us the retail investor out ? Seems like a win for AC, a win for the borrowing company, more security for the CBILS issuer but WE get nothing. I suggest any CBILS issues should be used to pay down a % of the current loan with AC. Please enlighten us all how we the retail investors will benefit.
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ton27
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Post by ton27 on May 19, 2020 12:25:26 GMT
I agree with your sentiment but cannot see CBILS being used to partly repay AC Loans nor do I like our security being usurped; however I believe the only benefit retails lenders will get is that it should make AC more stable and, if I put my scepticism to aside, may accelerate the timing of when AC cease to charge their unwelcome fees.
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littleoldlady
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Post by littleoldlady on May 19, 2020 12:26:08 GMT
I suppose it is an advantage to lenders that the platform does not fold.
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p2pfan
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Post by p2pfan on May 19, 2020 13:58:07 GMT
Following our accreditation for CBILS government guaranteed lending, our four initial institutional funding lines are in progress. We are targeting commencing CBILS lending at the end of the month and there is much to do. Nonetheless our legal team is experienced in this matter and this speed is possible. We will be funding both Commercial Mortgages and Development Loans - the latter in particular is not common in CBILS lenders and we could see substantial demand for the development funding as we can only see one other lender under CBILS covering this loan type. CBILS is originally derived from the old EFG government guaranteed loan structure and that was not friendly to property backed lending. We lobbied for that to change and it has which allows substantial support to what would have otherwise been under served SME businesses making a substantial contribution to GDP. We can fund both new borrowers and also support existing borrowers. Lenders are not allowed to have retail investment directly in CBILS loans but it is possible indirectly. We as a company are required to participate to a degree in this lending and therefore our shareholders and other funders may participate that way. We are planning a new funding round shortly to allow a further increase in capital to be available to us to scale our operations going forwards and into next year, through CBILS and beyond. We will provide more news soon. Hi Stuart, Sounds great for the platform and directors, more fee's more profit with a lot lower risk for AC. However, am I right in saying, we as retail lenders can't invest directly in these low risk loans, yet you have cut the interest rates for retail investors and our liquidity has been reduced dramatically. WE/US the lenders who have been investing/funding the platform are the ones being penalised. Please understand this. Recently I have been asked via the platform to vote on a few loans that have applied and been successful for CBILS loans. The general theme is , they want us to change the terms on the security we hold on these companies,( the bank issuing the CBILS wants to be above us in hierarchy of debt ranking) yet the CBILS will not reduce our exposure to the current loans, or monies from the CBILS will not be used to pay down the outstanding loan with AC, which will free up liquidity. So going forward what will be done to help us the retail investor out ? Seems like a win for AC, a win for the borrowing company, more security for the CBILS issuer but WE get nothing. I suggest any CBILS issues should be used to pay down a % of the current loan with AC. Please enlighten us all how we the retail investors will benefit. Well said. I would second these sentiments. Can't see any specific benefit to this for retail lenders (apart from that AC will make more money and hopefully be less likely to fold).
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