Lending queues?

I assume you meant to post this on the AC board? (if so, I can move it).

The cap was raised last week to £23m for the QAA/30DAA so there is currently no queue. About £1m of free capacity, I reckon. I doubt things have changed much in the GBBA and GEIA as there have been no new loan drawdowns.

No queues for QAA/30DAA. Still waiting on drawdowns to get funds into MLIA/GBBA but you would at least get 3.75% while you wait

But how long as it been waiting?

SteveT - down to around £700k of capacity remaining in the QAA / 30DAA.

jonah - You're right in that there's no real queue, all funds waiting within the account are treated with equal priority.  With sweeping turned on (khampson that's an option within the QAA account to sweep idle funds from other accounts) then you at least earn QAA interest on the funds waiting.  There are sizeable pools of cash waiting to be invested in both the GEIA and GBBA, about 60% of which is swept.  

Plenty of loans coming through the pipeline which will give home to all of the waiting funds but I don't have a clear picture on when exactly the drawdowns will occur.  There is a board meeting this week so I'll make sure I get some answers that can be reported here.

My concerns are that in the last 3 days I have managed to lend over a thousand pound out in over 30 loans in the manual account and on 8p in the 7%business account and nothing in the green account in 3 weeks which suggests priorities are give to manual investors? I want to spread the money around but currently I can't due to this so only managing to get my money out manually, what are the plans for AC to keep making it attractive to investors?

Thanks

Heh.  Yeah that is a bit of a novelty.

khampson - the GBBA and manual loan account have equal priority in the system, so that on any loan where the GBBA lending criteria are matched the allocation between the two will be broadly equal.  The green account actually has priority over the manual account for its loans as they are fewer and further between, so that the allocation to the GEIA will be something around 60 - 80% of availability.

The problem at the moment is that we've had some hold ups with various borrower's lawyers which has led to very few loans (in terms of total value) drawing down over the last few months, not helped by the smaller than typical loan sizes that have happened to come through during that period.  We have lot of loans in the pipeline at the moment with signed contracts working towards drawdown, something around £50m by value, with a wider spread of loan sizes from sub £100k loans through to one at £7.2m.  The majority of those loans should draw over the next 3 - 4 months, along with others being added to the pipeline every day.

I suspect that these will still tend to clump together, as the legals are the bottleneck and lawyers seem to like Fridays for earning their fee.  But hopefully over the next few weeks that will mean there is plenty for all the accounts to sink their teeth into.

Some.  The pipeline for the next four months is very strong, with more loans by volume and value than ever before.  That's not just a little bit more, it's several times bigger than anything we've had historically.

Where there is perhaps a little doubt is how many can draw down in the next two weeks, thus making it into June.  I suspect that the next week will be okay with a million or two of loans drawing, with several million in the final week of the month.  To try and expedite the drawdowns for the next two months every loan over a certain threshold value has been assigned to an individual director responsible for driving that deal through to completion.  June could be a £10m+ month if everything falls into place; July almost certainly will be as well.  August is always a tricky month given dependency on the borrower's solicitors, but the deals are there to make it a solid month before we're back into £10+m months thereafter.

There are also two new active projects with directors at the helm.  One is to streamline our reliance on borrower solicitors to try and reduce that bottleneck and the impact it has.  The second is additional system support in terms of tracking critical paths within the activity that needs to happen to draw loans down which will help with resource allocation, focussing on problem areas, and more accurate prediction of when loans are likely to draw.

What we cannot and will not do is take any shortcuts with our credit, due diligence, or legal processes so we can only increase our efficiency not cut out steps just to get some loans to draw quickly.  So as painful as it is there will be a steady build up of the stream of loans coming on to the platform rather than us being able to cut any corners just to get some to list in the next couple of days.