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Post by ablrateandy on Feb 25, 2016 13:35:31 GMT
Hello all,
Just a heads up that I am frantically finishing a document detailing a potential new trade that may happen as soon as Monday. It is a trade receivables company focussing on the healthcare sector, so a lot of the debts owed are from the NHS and multi-national corporates. It may be that they need the cash as soon as Monday. It will pay 12% (1% per month). Security is an all assets debenture over all receivables owed to the company and a cap on LTV of 80%, even if the debt is from the NHS.
The trade will be on a pledge basis, is fully underwritten and if I get the go-ahead it will close early afternoon on Monday. More anon....
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registerme
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Post by registerme on Feb 25, 2016 19:47:21 GMT
It will be interesting to see what "a lot" means in terms of percentage  . |
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Post by ablrateandy on Feb 25, 2016 19:59:34 GMT
The initial batch (subject to whether I get to see it or not tomorrow!) is about 25% NHS, 45% multinationals and the balance UK SMEs or public schools. Any subsequent changes to the pool (ie. more clients) will, bizarrely, almost certainly raise the proportion of NHS receivables in the pot.
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Post by ablrateandy on Feb 25, 2016 20:02:14 GMT
This is a preliminary-ish draft of how we assessed the first batch, so each "pool" is effectively determined by an internal credit score by the company and each company within that has a credit limit. These may be tweaked a bit but reasonably close :
Pool A (up to 40% of receivables tendered; maximum 40k)
Members : National Health Service, any Primary Care Trust or NHS Commissioning Body.
Pool B (up to 50% of receivables tendered; maximum £12,500 per client)
Members : A security company, A multi-national construction company, four global banks, two global oil firms, a Commonwealth government, two large law firms, a global sports event brand, three educational establishments with strong private cashflows, a supranational organisation, two defence equipment manufacturers.
Pool C (up to 30% of receivables tendered; maximum £7,500 per client)
Members : Twenty one companies and five schools.
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registerme
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Post by registerme on Feb 25, 2016 20:05:25 GMT
So basically ~80% UK Gilts / AA corporates with the change being SMEs / public schools (ie charities), with a max LTV 80%. Possibly some term risk. Offering 12%. Hurry up and take my money . |
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Post by ablrateandy on Feb 25, 2016 20:13:59 GMT
Yup. Plus for every 80 raised off an NHS receivable they have to pledge 100 of NHS collateral.
I present this without comment or recommendation.
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huxs
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Post by huxs on Feb 25, 2016 20:25:56 GMT
What will the term be?
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Post by ablrateandy on Feb 25, 2016 20:27:26 GMT
1 year.
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Post by ablrateandy on Feb 25, 2016 20:28:30 GMT
Oh and re term risk, most receivables are 30-90 days max.
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guff
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Post by guff on Feb 25, 2016 20:33:45 GMT
Hurry up and take my money . Current dumb count = Current dumb count - 1
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huxs
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Post by huxs on Feb 25, 2016 20:34:56 GMT
Sounds good to me
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registerme
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Post by registerme on Feb 25, 2016 20:35:50 GMT
Hurry up and take my money . Current dumb count = Current dumb count - 1 Thanks guff , don't mind if I do  .
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Post by ladywhitenap on Feb 26, 2016 9:38:31 GMT
Is there a plan for when this appears on the website? Can't see anything yet.
Will it be fastest finger first or.......?
Still feeling my way around as to how Ablrate do things.
LW
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registerme
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Post by registerme on Feb 26, 2016 10:44:36 GMT
It's not fastest fingers, ablrate currently use a slightly Heath Robinson system (ie uses functionality that wasn't originally designed for this) to manage "pledges" from lenders. Typically the pledge cap is £1000. The loan is then divvied up pro rata, so expect to get less.
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unmadem
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Post by unmadem on Feb 26, 2016 11:15:52 GMT
What monitoring of the loan / company will ablrate undertake on an ongoing basis ? Debentures are fine when things are going fine for a company but the security can disappear very fast if the organisation hits problems.
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