Post by arbster on Jul 21, 2015 17:16:31 GMT
I don't wish to sound overly negative, but I wasn't bowled over by the update email.
I'm presuming that the 8% is an annual figure, with interest paid quarterly, rather than 32% per annum. As such, 8% over seven years is a very long commitment, especially given the ready availability of 12% elsewhere, any constant stream of 9-12% loans on FC. The implication of explicitly stating that the second product will be eligible for the SM is that this one will not be, which makes the 7 year term even less attractive.
Personally, I would prefer individual loans associated with individual assets, to a "basket" of assets one step removed from the platform where I have invested my money. However, I will reserve judgement on this until I've seen the details of the product.
I really want these products to be good, to succeed, and mark an upturn in ABL's prospects, but in addition to not resolving the ATR question, this update didn't do it for me. Sorry.
The first is a company that has set up a product for the Renewable Heating Initiative. This company finances, installs, monitors and services biomass boilers that are subject to OFGEM payments under the initiative.
The loan will pay 8% quarterly, is amortizing and will be for seven years with payments from OFGEM already confirmed as the boilers will have been installed and all paperwork completed. We are starting with £100,000 and will be listing it on the platform as soon as we have completed all paperwork and aim to get it uploaded as soon as possible. Dependent on how it goes down with investors we are aiming to make this a regular product.
The loan will pay 8% quarterly, is amortizing and will be for seven years with payments from OFGEM already confirmed as the boilers will have been installed and all paperwork completed. We are starting with £100,000 and will be listing it on the platform as soon as we have completed all paperwork and aim to get it uploaded as soon as possible. Dependent on how it goes down with investors we are aiming to make this a regular product.
I'm presuming that the 8% is an annual figure, with interest paid quarterly, rather than 32% per annum. As such, 8% over seven years is a very long commitment, especially given the ready availability of 12% elsewhere, any constant stream of 9-12% loans on FC. The implication of explicitly stating that the second product will be eligible for the SM is that this one will not be, which makes the 7 year term even less attractive.
The second loan is also looking to become a regular product and will be something that those seeking diversification will enjoy. We are going to announce a partnership with a company that deals in SME loans that have assets in the background. In line with our procedure of working with experts in the area we have spent a considerable time going over the procedures of the company, the structure of the loans and the diversification element within the 'basket' of loans. We are very impressed with the way they operate and feel that we can build a tremendous product, tailored for our investors with excellent security and built-in diversification with certain assurances of asset performance.
You will learn of the company in the next couple of days and the details of the product, but the basics are that it will be a basket of asset backed loans to British SME's with asset coverage and a cash element from the borrower. The product will pay 10%, will be interest only for 3 years and we are finalising how much we will be listing for this loan, but it will be between £500,000 - £1 million. Again, depending on the popularity, the loan will also become a regular product and it will be eligible for listing on the Secondary Market.
You will learn of the company in the next couple of days and the details of the product, but the basics are that it will be a basket of asset backed loans to British SME's with asset coverage and a cash element from the borrower. The product will pay 10%, will be interest only for 3 years and we are finalising how much we will be listing for this loan, but it will be between £500,000 - £1 million. Again, depending on the popularity, the loan will also become a regular product and it will be eligible for listing on the Secondary Market.
I really want these products to be good, to succeed, and mark an upturn in ABL's prospects, but in addition to not resolving the ATR question, this update didn't do it for me. Sorry.
