jonah
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Post by jonah on Mar 2, 2016 21:28:59 GMT
They are going from a much higher rate according to the q&a, so I would hope they shouldn't have issues with the repayments at least.
or am I in too much of a glass half full mood?
Hot chocolate anyone?
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agent69
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Post by agent69 on Mar 3, 2016 18:14:36 GMT
237 due to draw down tomorrow.
£350k for 4 year fully amortising loan at 11%, LTV 64%. This is the second loan to the borrower, first was taken by an institutional investor.
Whenever anyone says asset protection is via the debtor book I always think of the plumber.
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dermot
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Post by dermot on Mar 3, 2016 18:16:31 GMT
237 due to draw down tomorrow. £350k for 4 year fully amortising loan at 11%, LTV 64%. This is the second loan to the borrower, first was taken by an institutional investor. Whenever anyone says asset protection is via the debtor book I always think of the plumber. Is there a backstory here?
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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 Mar 3, 2016 18:27:22 GMT
237 due to draw down tomorrow. £350k for 4 year fully amortising loan at 11%, LTV 64%. This is the second loan to the borrower, first was taken by an institutional investor. Whenever anyone says asset protection is via the debtor book I always think of the plumber. Is there a backstory here? Not in this, case but there was a loan to a plumber that was a disaster for lenders due to disappearing security. Youll have to look on pink threads or AC for details
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Post by crabbyoldgit on Mar 3, 2016 20:23:23 GMT
Sorry dont understand this loan and all advice on this site and i value the wisdom of people on this site is if it does not make sence keep out and im out .Security as i think i understand is the value of what money is owed to them but they will only be in trouble if what is owed to them is not payed in which case there is no security.As you can see i am out of my depth here,thanks but no thanks.
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Post by bracknellboy on Mar 3, 2016 20:48:30 GMT
Sorry dont understand this loan and all advice on this site and i value the wisdom of people on this site is if it does not make sence keep out and im out .Security as i think i understand is the value of what money is owed to them but they will only be in trouble if what is owed to them is not payed in which case there is no security.As you can see i am out of my depth here,thanks but no thanks. : I don't think you are out of your depth at all, though I don't know whether the particular variety of crustacean you represent prefers shallow or deep water. I think your post is a pretty fair summary of the 'security' of a company debenture where the only real value to be captured is the debtors book.
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mikes1531
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Post by mikes1531 on Mar 4, 2016 3:19:42 GMT
Sorry dont understand this loan and all advice on this site and i value the wisdom of people on this site is if it does not make sence keep out and im out .Security as i think i understand is the value of what money is owed to them but they will only be in trouble if what is owed to them is not payed in which case there is no security.As you can see i am out of my depth here,thanks but no thanks. : I don't think you are out of your depth at all... I think your post is a pretty fair summary of the 'security' of a company debenture where the only real value to be captured is the debtors book. I suspect that's why this loan is paying lenders 11% and not 8.75% like the loan with solid (physical) security that drew down on Thursday. I can't say I understand the business they're in, which probably should be telling me I should steer clear. At least for now, anyway. One bit of good news about this loan is that it is fully amortising over the 48-month term. If all goes according to plan, two years from now the loan will be a lot smaller and the LTV correspondingly smaller as well. OTOH, I get the feeling that when the first tranche was lent, the security was smaller and it's only because it has grown that Tranche 2 is possible. And that suggests to me that even if the debtor book hasn't grown in the next couple of years the borrower might be in a position to issue Tranche 3 because the first two loans will be a lot smaller through amortisation. But I haven't a clue whether things could go in that direction. If the security for this loan is £XXXk of debtors, then this loan ought to continue to tie up that amount of security whether or not there has been some repayment of principal. I think I need to join the 'out-of-my-depth' brigade! 
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jonah
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Post by jonah on Mar 4, 2016 5:18:01 GMT
The figures suggest, imo, that they are definitely trying to grow that loan book. So a hypothetical tranche 3 seems plausible.
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am
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Post by am on Mar 4, 2016 9:18:15 GMT
crabbyoldgit : I don't think you are out of your depth at all... I think your post is a pretty fair summary of the 'security' of a company debenture where the only real value to be captured is the debtors book. I suspect that's why this loan is paying lenders 11% and not 8.75% like the loan with solid (physical) security that drew down on Thursday. I can't say I understand the business they're in, which probably should be telling me I should steer clear. At least for now, anyway. One bit of good news about this loan is that it is fully amortising over the 48-month term. If all goes according to plan, two years from now the loan will be a lot smaller and the LTV correspondingly smaller as well. OTOH, I get the feeling that when the first tranche was lent, the security was smaller and it's only because it has grown that Tranche 2 is possible. And that suggests to me that even if the debtor book hasn't grown in the next couple of years the borrower might be in a position to issue Tranche 3 because the first two loans will be a lot smaller through amortisation. But I haven't a clue whether things could go in that direction. If the security for this loan is £XXXk of debtors, then this loan ought to continue to tie up that amount of security whether or not there has been some repayment of principal. I think I need to join the 'out-of-my-depth' brigade! My reading is that a 3rd party is charging people £3,800 to set up Asset Protection Trusts, and the borrower is lending £3,000 to those people (£800 payment upfront) to pay the 3rd party. What I don't understand is why people wealthy enough to need Asset Protection Trusts don't pay cash, or take out personal loans at a much lower rate. I also don't understand why the 3rd party isn't borrowing working capital secured on their debt book more directly at a lower rate. Do the rules on consumer credit prevent non-authorised businesses offering extended credit terms?
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dermot
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Post by dermot on Mar 4, 2016 14:35:41 GMT
I see #238 is coming up in a couple of days, 300K at 8.5% at 70.59% LTV
It is only a couple of miles from me, might wander past at the weekend and see how shipshape the place looks.
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oldgrumpy
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Post by oldgrumpy on Mar 4, 2016 15:03:44 GMT
I see #238 is coming up in a couple of days, 300K at 8.5% at 70.59% LTV It is only a couple of miles from me, might wander past at the weekend and see how shipshape the place looks. Try 8.25% ... the interest on this loan is very Limted(!!), like AC's proof-reading on the title.
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mikes1531
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Post by mikes1531 on Mar 4, 2016 17:03:26 GMT
I see #238 is coming up in a couple of days, 300K at 8.5% at 70.59% LTV Try 8.25% ... the interest on this loan is very Limted(!!), like AC's proof-reading on the title. It's higher than #239, which will pay 8% on a 12-month bridge of £148k. (59% LTV; scheduled for drawdown on Monday) ISTM that it would take an investor totally unconcerned about defaults to prefer these over a 7% 'managed' portfolio of loans with a Provision Fund. Or am I missing something important?
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SteveT
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Post by SteveT on Mar 4, 2016 17:09:58 GMT
Did anyone else receive emails about upcoming loans #238 and #239? Neither of my accounts seem to have received them (the last one received being #237). Not that I fancy investing in either but I'd rather know about them than not.
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happy
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Post by happy on Mar 4, 2016 17:32:04 GMT
I got neither either! happened to log in and see 238 earlier, better go back and have a look at 239 to see if I agree with your analysis before the kids want their Friday night pizzas!
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mikes1531
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Post by mikes1531 on Mar 4, 2016 17:44:30 GMT
Did anyone else receive emails about upcoming loans #238 and #239? Neither of my accounts seem to have received them (the last one received being #237). Not that I fancy investing in either but I'd rather know about them than not. Email just arrived. Sent at 1737.
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