|
Post by ablrateandy on Jul 27, 2015 14:46:02 GMT
Dear all,
We are delighted to be able to bring a second transaction to the platform on behalf of C******* C***** Ltd. The first transaction was for 50 containers being bought from China with 30 pre-sold. C******* C****** now have an oral expression of interest from the buyer of the first 30 that they are interested in buying the remaining 20 containers.
For those who would like to know the current location of the shipment and follow its progress, they are on the Merete Maersk!
New Loan Coming
C******* C****** have received an order for a further 50 containers. That order allows them to sell up to 50 containers to the buyer at £1,405 on or before the 31st January 2015. However, they are under no obligation to sell to the buyer, so if they achieve a higher price from someone else, they can make that sale instead.
They are seeking a loan of £65,500 to finance this transaction. The security is :
1. Purchase order that guarantees a minimum value of £70,250 (£1,405 x 50) . Ablrate has seen the identity of the purchaser and has verified that they have sufficient funds to complete the purchase on or before maturity.
2. A first charge over the identifiable containers until the purchase is completed.
There is no corporate guarantee on this transaction as it is effectively invoice financing and the transaction is underwritten.
C******* C****** hope to achieve between £1,450 and £1,600 per container when they begin marketing them and do not expect to have to sell them for the £1,405 that has been guaranteed as a minimum. Even with the minimum of £1,405, there is still sufficient to cover all capital and interest payments. Ablrate will take its fee when all lenders have been repaid.
The term of the new loan is for six months and the interest rate will again be 14%. We intend to put this live on the system at around 10am tomorrow morning (Tuesday).
This loan is fully underwritten.
|
|
alan
Posts: 55
Likes: 14
|
Post by alan on Jul 27, 2015 15:37:50 GMT
Is this an 'Instant Return' loan.
Thanks
Alan
|
|
locutus
Member of DD Central
Posts: 1,059
Likes: 1,622
|
Post by locutus on Jul 27, 2015 15:43:45 GMT
What's the official LTV on this? Looks a bit steep based on numbers provided.
|
|
oldgrumpy
Member of DD Central
Posts: 5,087
Likes: 3,233
|
Post by oldgrumpy on Jul 27, 2015 15:45:42 GMT
31st January 2016?
|
|
jjc
Member of DD Central
Posts: 414
Likes: 632
|
Post by jjc on Jul 27, 2015 16:31:20 GMT
What price has the buyer offered C******* in his "oral expression of interest" for the remaining 20 containers on the last deal?
How much are C******* paying for this 2nd lot of 50?
Who has underwritten the new deal?
|
|
ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 10,883
Likes: 11,106
|
Post by ilmoro on Jul 27, 2015 17:21:41 GMT
Shhh, you'll give it away, They're not really containers, they're Tardi. Hence the sale in the past.
|
|
|
Post by meledor on Jul 27, 2015 17:25:13 GMT
According to Companies House this company still hasn't filed its accounts for the year to 30 June 2014 (they were due 31 March 2015).
|
|
ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 10,883
Likes: 11,106
|
Post by ilmoro on Jul 27, 2015 17:53:35 GMT
According to Companies House this company still hasn't filed its accounts for the year to 30 June 2014 (they were due 31 March 2015). Supposed to have filed for an extension p2pindependentforum.com/post/52879/thread CH site showing compulsory strikeoff discontinued on same date
|
|
|
Post by ablrateandy on Jul 27, 2015 18:54:14 GMT
Hello!
Sorry - we've been busy getting stuff ready! Yes - the client is late filing their accounts but I have reassurance that the accountants are now on top of it. The buyer is genuine and has the assets to buy the containers.
We are just tweaking things at the moment, because although we are certain that the borrower intends to provide asset security, there are always unforeseen risks. The comments about the lack of current, public accounts are totally fair and we want to provide complete transparency. The likely outcome is that we will place the order directly from the Ablrate Client Account so that we know the payment has been made to the manufacturer. That way we can immediately place a charge over the assets.
|
|
james
Posts: 2,205
Likes: 955
|
Post by james on Jul 27, 2015 19:22:54 GMT
Ablrate will take its fee when all lenders have been repaid. That's a particularly nice way of doing things when it comes to aligning platform and lender interests. Not really practical on longer term loans, but nice anyway when it is.
|
|
|
Post by meledor on Jul 27, 2015 19:38:43 GMT
Hello! Sorry - we've been busy getting stuff ready! Yes - the client is late filing their accounts but I have reassurance that the accountants are now on top of it. The buyer is genuine and has the assets to buy the containers. We are just tweaking things at the moment, because although we are certain that the borrower intends to provide asset security, there are always unforeseen risks. The comments about the lack of current, public accounts are totally fair and we want to provide complete transparency. The likely outcome is that we will place the order directly from the Ablrate Client Account so that we know the payment has been made to the manufacturer. That way we can immediately place a charge over the assets.
Hi Andy
I was just about to post querying the meaning of "filed for an extension" but your comment acknowledges that the accounts remain late whatever the expression was supposed to mean. For the record it cannot have meant that an application had been made to extend the accounting period in question - no application (Form AA01) to change the accounting reference date has been lodged at CH and you must submit a change of accounting reference date before the filing deadline of the accounts for the period that you wish to change. In other words, if accounts for a particular accounting reference period are overdue, as they are in this case, then it is too late to change the accounting reference date.
For my due diligence I really need something more upto date than the accounts for a period ending over 2 years ago (June 2013) - so I was expecting Ablrate to include something more recent in the information pack - and I'm talking proper accounts not the couple of numbers that were included in the Company Overview for the previous loan for this company. Are the company's accountants sufficiently "on top of it" to assist in this?
|
|
|
Post by ablrateandy on Jul 27, 2015 19:45:10 GMT
I have sufficient to reassure me re the status of the accounts via the sponsor but won't hit the "Live" button until I am 100% happy (despite having it fully underwritten). There are a couple of issues that we will try to clear up to everyone's satisfaction and I am talking to the borrower at the moment to make sure that everyone is happy. If it isn't, we will delay slightly until all of the i's are dotted.
|
|
arbster
Member of DD Central
Posts: 810
Likes: 426
|
Post by arbster on Jul 28, 2015 6:27:29 GMT
I think my maths must be off here, because I can't see the attraction of this deal for the borrower. The total value of these containers is £80,000 if they achieve £1,600 per container, but given the broad range given and the current best offer of £1,405 per container (£70,250 total), they're more likely to get something like £75,000 (at a generous £1,500 per container). They're taking a loan of £65,500 for 6 months, incurring approx £4,600 in interest, taking the total cost of finance to c. £70,100. Assuming the company are putting zero capital into this deal and it's fully funded by the finance, this leaves, in the median case, a profit of £4,900 from which ABLrate must get paid. If they end up taking the current best offer they make a princely £150, which I presume they'll have to hand straight to ablrateandy. What am I missing? Maybe I shouldn't care, so long as we all get our 14%, but it just doesn't seem to make good business sense at these margins.
|
|
|
Post by ablrateandy on Jul 28, 2015 6:54:51 GMT
These containers can go for a little more and this what he is looking to do. The backstop purchase order guarantees that they are done at a price that covers costs. Off the top of my head the last ones sold for 1450 and that was a pre-order before manufacture. Generally, the price rises as they get closer to the point of potential use (arrival in the UK) as if someone needs a container next week, they have to pay a little more for it. I guess "a little bit" multiplied by 50 adds up, especially if you do it a few times per year. It's fair to say that he will use his experience and knowledge of supply and demand to try to optimise his return but has his exit covered in a way that will pay down the loan. Need to get perfection on the security sorted and check that the manufacturer is still good to go first thing this morning. arbster
|
|
duck
Member of DD Central
Posts: 2,592
Likes: 5,779
|
Post by duck on Jul 28, 2015 8:09:18 GMT
There are certainly other markets for containers that have a considerably larger margin. Excluding the high integrity containers the cost for a general purpose container on the licensed Nuclear sites that I have been know to inhabit is, shall we say, a few £ more .....
|
|