seve
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Post by seve on Jul 3, 2015 9:01:17 GMT
I don't get why the interest rate is so low at 6.75% when it appears that virtually identical loans apparently to same borrower are available on Assetz Capital paying 10%. Anyone got any ideas? I'm keen to spread my lending across multiple platforms but this doesn't seem to make sense.
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shimself
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Post by shimself on Jul 3, 2015 9:20:56 GMT
I don't get why the interest rate is so low at 6.75% when it appears that virtually identical loans apparently to same borrower are available on Assetz Capital paying 10%. Anyone got any ideas? I'm keen to spread my lending across multiple platforms but this doesn't seem to make sense. Cost of the "insurance"? Greed on the part of the platform (who are based in the city after all)?
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Post by hugoarchover on Jul 6, 2015 14:10:32 GMT
I don't get why the interest rate is so low at 6.75% when it appears that virtually identical loans apparently to same borrower are available on Assetz Capital paying 10%. Anyone got any ideas? I'm keen to spread my lending across multiple platforms but this doesn't seem to make sense.
seve
The company you are referring to on Assetz is a sister company of the one we lend to but operates in a different way. The money raised by them is for ‘export’ finance and I believe Assetz rely on Personal Guarantees etc to provide some security for lenders.
The business on our platform only lends to UK businesses requiring ‘import’ finance, so it’s all UK based. We believe this is a safer business to lend to and as the risk is reduced, the cost of money is reduced. Unlike Assetz we insist that the Borrower’s Accounts Receivable (the most realisable asset after cash) remains at a minimum of 125% and we have a First Floating charge at Companies House that allows us to collect the AR if they drop below this level. The Accounts Receivable is also insured against default or late payment as further protection for our lenders.
shimself - we are based on the outskirts of the City in our backer’s building. I suspect this is significantly cheaper than Mayfair where Assetz are based, though I really don’t think this makes any difference for an investor. It is also important that you are fully aware of the facts as your commentary may mislead other investors which I know is not your intention.
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Post by andrewholgate on Apr 21, 2016 7:57:27 GMT
I don't get why the interest rate is so low at 6.75% when it appears that virtually identical loans apparently to same borrower are available on Assetz Capital paying 10%. Anyone got any ideas? I'm keen to spread my lending across multiple platforms but this doesn't seem to make sense.
seve
The company you are referring to on Assetz is a sister company of the one we lend to but operates in a different way. The money raised by them is for ‘export’ finance and I believe Assetz rely on Personal Guarantees etc to provide some security for lenders.
The business on our platform only lends to UK businesses requiring ‘import’ finance, so it’s all UK based. We believe this is a safer business to lend to and as the risk is reduced, the cost of money is reduced. Unlike Assetz we insist that the Borrower’s Accounts Receivable (the most realisable asset after cash) remains at a minimum of 125% and we have a First Floating charge at Companies House that allows us to collect the AR if they drop below this level. The Accounts Receivable is also insured against default or late payment as further protection for our lenders.
shimself - we are based on the outskirts of the City in our backer’s building. I suspect this is significantly cheaper than Mayfair where Assetz are based, though I really don’t think this makes any difference for an investor. It is also important that you are fully aware of the facts as your commentary may mislead other investors which I know is not your intention.
I've only just seen this but your information is wrong. You should be very careful in what you say.
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Post by captainconfident on Apr 22, 2016 13:31:32 GMT
This is by far the most interesting post on the board.
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Steerpike
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Post by Steerpike on Sept 5, 2016 19:25:37 GMT
I am looking at this again and there appears to be quite a difference between the risk/reward ratios for these debenture secured loans to two closely associated companies.
6.75% for 6 month including AR default insurance versus 10.5% for 24 months without AR default insurance.
Currently, I have both, more of the former but I am more likely to increase the latter.
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IFISAcava
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Post by IFISAcava on Sept 3, 2018 16:14:17 GMT
Not looking good...
<link identifying borrower removed by mod>
(courtesy of elliottm)
Hoping Archover haven't drawn down that last E*** loan from last week... hugoarchover ?
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Steerpike
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Post by Steerpike on Sept 3, 2018 16:47:42 GMT
Separate but associated company U* ***m L*mited has 6 loans on AC (#104 #107 #108 #109 #11 #530) that are overdue and suspended.
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Post by stevepn on Sept 3, 2018 16:47:42 GMT
Thank goodness I never renewed when 5236 finished in May. My confidance in Archover is getting less every day.
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IFISAcava
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Post by IFISAcava on Sept 6, 2018 10:36:28 GMT
Confirmation that latest E*** loan not drawn down on Archover. Phew.
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mary
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Post by mary on Sept 6, 2018 11:34:50 GMT
All these loans were Insured - anyone know if this insurance has paid out yet in the case of other defaults?
I think the insurance is a last resort, and all other recovery actions have to complete before it can be claimed against, therefore its going to be quiet some time before we find out if/how much, it covers here.
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IFISAcava
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Post by IFISAcava on Sept 6, 2018 11:50:21 GMT
All these loans were Insured - anyone know if this insurance has paid out yet in the case of other defaults?
I think the insurance is a last resort, and all other recovery actions have to complete before it can be claimed against, therefore its going to be quiet some time before we find out if/how much, it covers here. And depends WHAT is insured - and whether it covers possible fraud (as opposed to just invoice non-payment)..
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IFISAcava
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Post by IFISAcava on Sept 6, 2018 11:51:02 GMT
Confirmation that latest E*** loan not drawn down on Archover. Phew. although thinking about it the 14 day cooling off period offered a potential lifeline too.
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m2btj
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Post by m2btj on Sept 6, 2018 12:06:37 GMT
I would like to see Archover, AC & YG take a tough approach here. It appears to be a case of deliberate misrepresentation or even fraud & involves the company's 'professional' advisors. The background information is complex & I certainly look forward to the speediest positive resolution possible.
I must add that Archover's handling of RS&P was exemplary & I am delighted to see that the company is now trading profitably following Archover intervention.
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Greenwood2
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Post by Greenwood2 on Sept 6, 2018 12:16:19 GMT
All these loans were Insured - anyone know if this insurance has paid out yet in the case of other defaults?
I think the insurance is a last resort, and all other recovery actions have to complete before it can be claimed against, therefore its going to be quiet some time before we find out if/how much, it covers here. And depends WHAT is insured - and whether it covers possible fraud (as opposed to just invoice non-payment).. These types of Insurance look great until you try to claim, then they can be a minefield. It seems to be the income stream for the company that is insured against non-payment (would be glad to be told differently), but at what percentage? And there may be a lot owed to the company that is covered, or not. And then there will be the Administrators cut.
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