shimself
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Post by shimself on May 2, 2015 19:04:22 GMT
The security on this is all in the PG, but the PG seems fine.
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madpierre
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Post by madpierre on May 2, 2015 19:22:24 GMT
The principal is one canny businessman and will make an excellent return for minimal initial outlay. I admire his style 
I will undoubtedly invest but because we're collectively taking all the risk, it will be a smaller investment than my underlying confidence in the outcome.
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mikes1531
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Post by mikes1531 on May 3, 2015 15:54:17 GMT
15% seems high? What about the fact that 15% is what AC lenders will be accruing. On top of that would be AC fees, which probably include aloan monitoring fee of 2% or so. I'd guess that the APR to the borrower would be at least 18%. And if the borrower's expecting to make a higher percentage out of the enterprise than that - and of course he is by a very long margin - then it's well worth it to him. We'd be taking on all the risk here, so I think the 15% return feels about right. Thinking about it a bit further, the borrower's APR is going to be even higher than I first thought. They're paying interest on the whole amount raised, but may not have it all drawn down all of the time. Since the average capital outstanding will be less than the whole borrowing facility, the effective interest rate on the amount actually borrowed will be higher than the rate shown.
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