Draw down timescales

Andrew made some ambitious forecast for the growth of Assetz in the coming year at the Lenders Day and predicted that  the loan book would grow from £20m to £100m over the coming year. I am sure most of us on this thread are keen to see this achieved and even exceeded.  However whilst I understand how and why some loans get delayed in the drawdown phase, IMO this in itself could become a serious detraction to potential new lenders. Currently I have 9 loans awaiting drawdown, two of which date back to February and I am becoming increasingly irritated by the delay.

Assetz is putting much effort into developing its web site but I for one hope they are putting a similar amount of effort to improving the throughput of loans to completion.

Anyone else finding this a pain?

AC is a recent diversion for me, and I'm certainly horrified by how long things seem to take compared with other platforms offering asset backed loans that I lend through.  I've bid on two loans so far and will be watching to see how long they take to draw down before deciding what to do.  I bought two other chunks via AM, which was much more straight forward and have already received my first amount of interest on one of them, with another due next week.  I guess once I've invested enough to be allowed to make shadow bids I'll be much happier, but it definitely puts me off, so I might not reach that level.  I'll give it a few months and smallish amounts to see how things pan out; it's all about the opportunity costs relating to dead money for me and there are quicker options elsewhere just now.  On the other hand, diversification is worth paying for up to a point.  In summary, I'm on the fence with AC, and the only reason I'm still up there is this issue with draw down timescales.  Otherwise, it all seems active, liquid and all the other good things I'd want.

Ramblin Rose-shadow bid facility is not the solution it may appear given the relationship of new loans appearing versus NONE drawing down.I'm in the position of having to settle shadow bids which are not yet due in order to free up shadw bid headroom.I've since increased my shadow "allowance" but if drawdown timescales dont improve I'll end up back in the same position.

There is normally some compensation regarding extended drawdown timescales but I now visit the AM especially with the delays regarding *% over say 6 months. Any delays simply destroy the return. Shadow bidding is handy but IMO the quickest way is still with the AM and of course that equates to zero idle money time.

I would much rather see quick drawdowns with proper due diligence & documentation than slow drawdowns or loans being cancelled, but I would also much rather have slow drawdowns and cancellations instead of loans where something wasn't done right. For me, the strongest selling point for Assetz is the sense that security really is the priority and the loans are drawn up in a way that maximises the chance of recovering money if something goes wrong. I'm willing to wait longer for drawdown if that's what it takes to get the documentation right.

I do think Assetz could do a better job of communicating progress. It's not so much the having to wait as the uncertainty that bothers me - being given estimated drawdown dates that keep being put back, etc. I'm not sure though what can be done about this. It would be great to be copied in somehow to the exchanges you have with the lawyers but I can see that isn't practical. Any other suggestions?

I also back the idea of having a single page where all updates to drawdown progress/estimates on the loans in limbo are posted, rather than having to look at the Q&As for each individual deal.

Overall, though, I don't want Assetz to compromise the slightest bit on getting the security right, and I'm willing to wait if that's what it takes.

I agree very much with bengilbert. It isn't so much the waiting as the lack of communication on it, an update only ever being given if asked for, and such requests sometimes taking a few days to get a response.

i have suggested previously a weekly update on drawdown of all outstanding loans, either on here or via a weekly email. I think would do a lot to keep lenders calmer and happier about the issue. I'm quite sure most of the issues are out of Assetz's direct control and relate to solicitors etc who don't act on the day they say they will. However, communication is within control and I for one would welcome not having to trawl through every loan to find out if there is any update.  Is what I am suggesting realistic andrewholgate?