littleoldlady
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Post by littleoldlady on Jul 22, 2020 21:50:40 GMT
Interesting new platform. 12.15% on their first loan.
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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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Qardus
Jul 22, 2020 22:57:14 GMT
Post by ilmoro on Jul 22, 2020 22:57:14 GMT
Interesting new platform. 12.15% on their first loan. Needs to be read very carefully. It isnt a true P2P platform, you are investing in an JV SPV to lend money to an SME to purchase goods which will then be sold and profits returned to the SPV. Rate is predicted profit not an interest rate. Slight concern that the Info Memorandum is missing
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littleoldlady
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Qardus
Jul 23, 2020 7:27:51 GMT
Post by littleoldlady on Jul 23, 2020 7:27:51 GMT
The return has to be called profit because of Islamic law, but non-Muslims can, I think, regard it as interest, in the form of a dividend. Under the agreement it is a fixed profit, not variable, although of course there is no guarantee that the borrower will be able to repay if he goes bust, but there is no other reliance on market conditions. Al Rayan bank operates under the same Islamic code of practice and they offer a cash a/c in which the tax man regards the returns as interest.
I had no trouble downloading the Info Memorandum so maybe you have to be registered to get it. It seems to me to show a borrower in robust health and in a position to do very well out of Covid. It requires a little extra liquidity to boost its profits and cannot obtain loans from mainstream lenders because of its Islamic objection to paying interest. I can send it to anyone interested and I would be pleased to get other opinions. I have only made a modest investment so far but am watching with great interest.
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qwakuk
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Post by qwakuk on Jul 23, 2020 8:11:32 GMT
Does it mention what happens if they do not raise the full £100,000 ?
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dave4
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Qardus
Jul 23, 2020 8:24:14 GMT
Post by dave4 on Jul 23, 2020 8:24:14 GMT
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Greenwood2
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Qardus
Jul 23, 2020 8:42:19 GMT
Post by Greenwood2 on Jul 23, 2020 8:42:19 GMT
Does it mention what happens if they do not raise the full £100,000 ? Minimum £80,000 (or what the borrower will accept I think).
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benaj
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Post by benaj on Jul 23, 2020 9:17:47 GMT
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benaj
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Post by benaj on Jul 23, 2020 9:21:47 GMT
So how big is Qardus? in terms of size, 1 man? Not much info atm.
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iRobot
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Post by iRobot on Jul 23, 2020 9:39:00 GMT
One of those 'small world' coincidences I guess, but their registered office is above a borrower's outlet on ABL.
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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 Jul 23, 2020 20:33:43 GMT
Its equity crowdfunding (clearly indicated) not P2P lending and cant be P2P lending as ShareIn doesnt have P2P permissions. littleoldlady if its a dividend then its not interest so is taxed differently (until Rishi changes the rules to pay the debts). I would be wanting to check the tax position out, whether there is any CG liability (unlikely as I assume shares are repaid at par). Certainly not eligible for any loss relief if it goes awry. It says there are no documents for the opportunity but that maybe because Im registered but not verified (and cant as they dont use electronic checks) so they arent shown. |
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littleoldlady
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Qardus
Jul 24, 2020 7:40:52 GMT
Post by littleoldlady on Jul 24, 2020 7:40:52 GMT
Tax free for me, and I guess many others, as covered by the £2k divi allowance.
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dave4
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Cynical is a hobby not a lifestyle
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Qardus
Jul 24, 2020 8:26:41 GMT
Post by dave4 on Jul 24, 2020 8:26:41 GMT
is there any other products similar anywhere ?? Quite like this, just want a comparison.
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Greenwood2
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Qardus
Jul 24, 2020 8:41:46 GMT
Post by Greenwood2 on Jul 24, 2020 8:41:46 GMT
Not quite sure why the interest rate is so high if the business is so good, there are other sharia compliant lenders out there (obviously not structured as interest paying).
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Greenwood2
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Qardus
Jul 24, 2020 8:49:14 GMT
Post by Greenwood2 on Jul 24, 2020 8:49:14 GMT
is there any other products similar anywhere ?? Quite like this, just want a comparison. Similar in what way? Some of the property platforms pay dividends rather than or as well as interest. I don't think I've seen any other sharia compliant platforms but I think Loanpad are hoping to have that option in the future. Lending to SPVs was quite common with development projects with mixed results!
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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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Qardus
Jul 24, 2020 12:34:18 GMT
via mobile
Post by ilmoro on Jul 24, 2020 12:34:18 GMT
Yielders was referenced in Qardus news article
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