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Post by ablrate on Jul 2, 2021 11:30:49 GMT
In doc. 'Borrowing Proposal' re. repayment pg 3 Interest & Capital pg 19 Interest only edit. hey the computer has taken over I didn't put a sad face I put a question mark Thanks will take a look
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Post by ablrate on Jul 2, 2021 11:36:38 GMT
I note that no LTV quoted in the proposal. The security could be better IMHO so thats why its 15% Given there is highly likely to be a peeone loan along soon, I think I'll keep most of my available funds for that and maybe just take a small slice of this one or pass it by - jury here is still out. LW Having done a few sums, I calculate the loan as having a LTV of 76% second-charge (max £700k loan + £1110k prior-ranking loans/£2385k assets), so a bit risky for me. Especially as the loan is secured on the company by a debenture, rather than charges on specific assets. So (as Crowdstacker found with the BN liquidation) all the company's assets could be put up as collateral for other loans, and those loans would take priority over this ABLRate one in event of a default. Taking this aspect into consideration, and only considering the property assets, then increases the loan's LTV to 113% (max £700k loan + £698k prior-ranking loans/£1235k assets). I'm out! The terms of our debenture is an 'all and future' asset debenture. I.e no security can be created against asset that would trump the debenture, unless its a lease / hire purchase etc. If the company did try to create such security it would crystalize the debenture and be an event of default, any security created after hours would therefore be second ranking to us. My understanding was that with the BN liquidation it was a debenture over topco, that doesn't trump chattels already in existence (we know, as we had a number of them) and the waterfall doesn't necessarily flow to subsidiaries and definitely not to sister companies.
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ptr120
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Post by ptr120 on Jul 2, 2021 11:38:39 GMT
Does anyone know how the loan that this is repaying performed at huddle capital? Payments on time, extensions etc.?
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Post by ablrate on Jul 2, 2021 11:40:13 GMT
Does anyone know how the loan that this is repaying performed at huddle capital? Payments on time, extensions etc.? It wasn't on the P2P platform it was from the commercial lending business.
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p2pfan
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Post by p2pfan on Jul 2, 2021 11:48:32 GMT
Agree with previous comment that this should be perceived as an unsecured loan.
In a real world Administration scenario, the likelihood of getting anything more than 20p in the £1 lent by lenders is tremendously low. For instance, the most value assets in the gym, the equipment, have been taken out on HP and belongs to the lender. Therefore you shouldn't even expect to get a 500 gramme dumbbell if/when this company goes into Administration.
Don't forget the Administrator and lawyers will probably steal at least one hundred thousand pounds for themselves at their £650 an hour plus expenses rates, as we see time and again with other other Administrations.
As has also been commented above, and full respects to Ablrate for being totally transparent about this in the documentation, the borrower has a track-record of one failed business after another. I used to not pay attention so much to these matters previously, believing everyone deserved 'a second chance', but having lost so much money to arrogant borrowers in recent times who used my and other lenders money to buy fancy cars for themselves etc., and then when their businesses go bust, start new businesses, anybody who has a gold medal in running failed business ventures and therefore has usually screwed over their lenders holds short shrift with me.
The 'saving grace' for this loan is the high interest rate, being paid on an amortised basis, and the credibility that Ablrate hold in my eyes. For that reason I'll loan a very small sum and see this as a pure gamble.
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ptr120
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Post by ptr120 on Jul 2, 2021 12:56:54 GMT
Does anyone know how the loan that this is repaying performed at huddle capital? Payments on time, extensions etc.? It wasn't on the P2P platform it was from the commercial lending business. In that case, did they make all payments on time? Did the loan need to be extended? I'm guessing not, or we'd have been told
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criston
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Post by criston on Jul 2, 2021 15:27:25 GMT
I note Ablrates higher than usual monthly fees.
That's a good sum that is needed to look after lenders interests & to keep an eye on the borrower, with this type of security.
If the second tranche is not taken up & with the loan amortising, the LTV could look reasonable for this type of loan.
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Post by df on Jul 2, 2021 19:25:13 GMT
Only 64k left. Will be filled when CLE and BKA repayments come through, if not before...
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Post by Badly Drawn Stickman on Jul 4, 2021 21:34:03 GMT
Only 64k left. Will be filled when CLE and BKA repayments come through, if not before... I suspect it will finish filling after the overdue loans are paid (due to weekend payments) there seemed to be a reasonable appetite to invest, but probably not enough to use new funding in some cases. The SM was fairly interesting prior to and just after launch loans being traded at par or just below that suggests a bit of account balancing. The Gym looks very impressive (photos actually do lie a lot these days though, rather rubbishing the old saying that it never does) I am very much on the fence with the loan itself, could be a winner but could equally crash and burn. I have taken a bit currently being in 'dare to dream mode' due to the football. It is very much on vogue to join a gym these days and I guess there is an element of 'status' to joining a slightly posh one, it does have a very positive local press which presumably helps. Personally I am happy to walk five minutes to the local park which seems to have almost identical equipment free to use (No walls, roof or LED lights though so maybe not strictly comparable. Thunder storms here most of the day did make it even less attractive) Downside is I think lasting commitment to using a gym is well known to be fairly transient. Also the sums of running costs and staffing added to the loan payments would not really seem to add up, maybe a coffee bar and clobber shop is where the real money is made.
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Post by Badly Drawn Stickman on Jul 9, 2021 21:31:39 GMT
I am oddly pleased to see this taking a while to complete, I had quite forgotten the pleasure of instant returns that almost seem worth having. I am on holiday next week so if you could drag it out for another week that would work for me ablrate. Thanks in advance.
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blender
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Post by blender on Jul 11, 2021 12:59:30 GMT
I am oddly pleased to see this taking a while to complete, I had quite forgotten the pleasure of instant returns that almost seem worth having. I am on holiday next week so if you could drag it out for another week that would work for me ablrate . Thanks in advance. Yes, very satisfying to get some instant returns. I am expecting well over £1 per day, and it's mounting up all the time. It will help with my current project to save up for a PCR test.
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ptr120
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Post by ptr120 on Jul 15, 2021 14:00:57 GMT
This loan has now drawn down and instant returns credited
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dh1
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Post by dh1 on Jul 27, 2021 12:03:49 GMT
Hmmm... Interesting new (11:17 today) admin note on this one. Wonder where that leaves lenders...?
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GreenZero
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The early bird may get the worm, but it's the second mouse who gets the cheese
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Post by GreenZero on Jul 27, 2021 12:16:54 GMT
Was wondering the same myself with such a change taking place 12 days after taking out the loan....
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Post by Badly Drawn Stickman on Jul 27, 2021 12:30:23 GMT
Was wondering the same myself with such a change taking place 12 days after taking out the loan.... I would be inclined to think it was a big enough change to have paused the ASMX listing for a period. May not have a material effect but to continue trading clearly gave a short term advantage to early readers of the email. Didn't involve me on this occasion but should be automatic prior to releasing important updates.
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