mikes1531
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Post by mikes1531 on Dec 19, 2014 23:49:44 GMT
An email from fundingsecure indicated that the Auction going live Saturday is to renew/replace a maturing loan, but the procedure seems to be different from past practice in an important way. In the past, when a loan has been renewed the maturing of the old loan and the starting of the new auction have been pretty much simultaneous, whereas on this occasion my investment in the maturing old loan was repaid the day before the new auction is to start. Inasmuch as the borrower is renewing the loan, the original funds lent are unlikely to have been repaid by the borrower on Friday so that they can be paid pack to the borrower on Saturday -- presuming that the loan is completely funded that day, which I expect it will be. I expect this means that FS have used their own funds to repay the lenders in the original loan. I take this as a positive development as it suggests that FS have a significant amount of working capital at their disposal. Of course, I may have drawn an erroneous conclusion from the evidence, so I'd appreciate it if others could express an opinion as to whether they think there could be a different interpretation of what has happened. |
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ianj
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Post by ianj on Dec 20, 2014 9:55:47 GMT
As I understand it, there is no roll-over as both the amount to be lent and LTV have been altered.
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Post by Come_on_Grandad on Dec 20, 2014 13:25:11 GMT
An email from fundingsecure indicated that the Auction going live Saturday is to renew/replace a maturing loan, but the procedure seems to be different from past practice in an important way. In the past, when a loan has been renewed the maturing of the old loan and the starting of the new auction have been pretty much simultaneous, whereas on this occasion my investment in the maturing old loan was repaid the day before the new auction is to start. Inasmuch as the borrower is renewing the loan, the original funds lent are unlikely to have been repaid by the borrower on Friday so that they can be paid pack to the borrower on Saturday -- presuming that the loan is completely funded that day, which I expect it will be. I expect this means that FS have used their own funds to repay the lenders in the original loan. I take this as a positive development as it suggests that FS have a significant amount of working capital at their disposal. Of course, I may have drawn an erroneous conclusion from the evidence, so I'd appreciate it if others could express an opinion as to whether they think there could be a different interpretation of what has happened. The ongoing renewal of 6 racing yachts has also seen those original lenders who chose not to roll-over repaid their capital in advance of the renewal auction completing. I reckon about 35% of funds were repaid, so that seems about £50k funded either by the borrower or by additional working capital employed by FS at the same time as your £30k above. There is another feature of the yacht renewal that is not so welcome. See separate thread.
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mikes1531
Member of DD Central
Posts: 6,453
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Post by mikes1531 on Dec 20, 2014 21:25:04 GMT
An email from fundingsecure indicated that the Auction going live Saturday is to renew/replace a maturing loan, but the procedure seems to be different from past practice in an important way. In the past, when a loan has been renewed the maturing of the old loan and the starting of the new auction have been pretty much simultaneous, whereas on this occasion my investment in the maturing old loan was repaid the day before the new auction is to start. Inasmuch as the borrower is renewing the loan, the original funds lent are unlikely to have been repaid by the borrower on Friday so that they can be paid pack to the borrower on Saturday -- presuming that the loan is completely funded that day, which I expect it will be. I expect this means that FS have used their own funds to repay the lenders in the original loan. I take this as a positive development as it suggests that FS have a significant amount of working capital at their disposal. Of course, I may have drawn an erroneous conclusion from the evidence, so I'd appreciate it if others could express an opinion as to whether they think there could be a different interpretation of what has happened. The ongoing renewal of 6 racing yachts has also seen those original lenders who chose not to roll-over repaid their capital in advance of the renewal auction completing. I reckon about 35% of funds were repaid, so that seems about £50k funded either by the borrower or by additional working capital employed by FS at the same time as your £30k above. Thanks for pointing that out -- I hadn't thought of that. And I suspect that a lot more than 35% of the funds were repaid because, IIRC, when the new loan first appeared on the list more than half of it was available for investment. Even now, about 20% of the funding still has not been offered.
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