Two loans with different risk bands

longjohn

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Two loans with different risk bands Jul 13, 2016 11:46:58 GMT

Quote

Post by longjohn on Jul 13, 2016 11:46:58 GMT

Loan 24054 is for £27,180 and rated A+. The company has an existing loan 15522 for £125,660 rated A and secured on property.

Naturally the new loan will not repay the existing loan so the company will have an A and A+ loans running concurrently. I'm sure I read somewhere that this wouldn't happen. Are there any other examples of this?

John

ptr120 Member of DD Central Posts: 1,201 Likes: 1,350	Two loans with different risk bands Jul 13, 2016 17:41:10 GMT Quote Select Post Deselect Post Link to Post Back to Top Post by ptr120 on Jul 13, 2016 17:41:10 GMT IIRC this used to not be allowed, but when they last updated the T's&C's it was changed so that it is allowed if for different purposes - for example, 1 loan for an asset purchase, and then another later loan for working capital.

blender Member of DD Central Posts: 5,719 Likes: 4,272	Two loans with different risk bands Jul 13, 2016 19:53:58 GMT Quote Select Post Deselect Post Link to Post Back to Top Post by blender on Jul 13, 2016 19:53:58 GMT That's right - and Pari Passu has left the building.

longjohn Posts: 366 Likes: 123	Two loans with different risk bands Jul 14, 2016 10:31:08 GMT Quote Select Post Deselect Post Link to Post Back to Top Post by longjohn on Jul 14, 2016 10:31:08 GMT Thanks ptr120 and blender. I didn't read the last update to T&C. I wish they'd highlight the changes rather than requiring a re-read of war and peace again. John

Post by longjohn on Jul 13, 2016 11:46:58 GMT

Post by ptr120 on Jul 13, 2016 17:41:10 GMT

Post by blender on Jul 13, 2016 19:53:58 GMT

Post by longjohn on Jul 14, 2016 10:31:08 GMT