PBL104 - 3 Bedroom Flat, London - REPAID (Before Drawdown)

I keep looking at this loan and have a small ammount invested, the way I see it is that this loan since it has not been drawn down must be one of the safest loans on this site as long as SS does not have any problems with liquidity and paying the interesed each day/month.

If my assumption is correct why is there any part of this loan available on the SM?

Well, if this is not cancelled, then it is exactly becase there is still some chance ('risk') that the borrower will complete the deal, otherwise SS would have cancelled it by now. And given the very little time available, this is one of the most likely to derail from plan (i.e. at very least will need an immediate extension).

I would like a cleaer indication of things by SS. It is incredible that they still haven't made up their minds on it (and if they did, they should have closed it many weeks ago)

The money is still with SS, i.e. never went to the potential borrower.
From this point of view (and until it is in the SS hands) this is one of the most secure situations to be in (i.e. you have hard cash and not a 'security').

But clearly, SS cannot continue and not take a serious decision now.
It is also a question of reputation. A bridging company cannot stay months and months waiting, paying lenders from their own balance just because they cannot take decisions (to stop a loan where it is evident the non-start).

This 'missing action' also raises the doubt they might have cashflow problems (i.e. they might not have cash in hand the 1.75 mil they have to give back to lenders) and this would be for me the only possible explanation for their lack of decisions here.

I said clearly 'for me', i.e. based on my experience. If you have different opinions you are welcome to express, but please don't insult (or call ludicrous) people thinking differently. It is also UNACCEPTABLE from a moderator....

Your suggestions might be valid for a short period of time. But we have a situation which is getting far too long. The loan is almost finished and the company has still not decided what to do? This does not fit with my ideas of fast moving company taking prudent decisions.

It’s not the first time loans have taken an inordinate time to drawdown, PBL’s 11-13 and 19 – took 4/5 months IIRC and in those days interest accumulated and wasn’t paid 'till drawdown so more nail biting from the investors' point of view. There are examples of SS pulling the plug on loans before drawdown, and another – the wood - PBL52, where they initially pulled the plug but the loan was re-listed some six (?) months down the line. There may come an occasion where they get it wrong, but it seems to me they get it right most times, and I am sure for this loan they have the info they want to weigh in favour of continuing to wait at the moment.

Pulling it out and eventually relisting it later (if borrowers full requirements are finally met) is the most prudent move and this is what I would have done long time ago. This way you keep a good relationship with the borrower/broker, but state clearly that some initial requirements must be met before proceeding. That is definitely a cleaner and more professional way of running a 'difficult' loan like this (if you have the available cashflow to immediately refund the lenders).