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Post by mrclondon on Jun 5, 2014 20:00:30 GMT
Ki*****a E***** the parent group behind the Cumbria and Burnley SPV wind loans on AC (and presumably also the introducer C****** U**** ) have opted for the Relendex platform for their next loan ... also in Cumbria, 9% over 36 months. (Just received an email from Relendex, the loan is due to go live tomorrow, Fri 6th) A stark reminder of how competitive the P2B marketplace is becoming, and a (partial) answer to yvonne who asked on another thread about the parcity of new loans on AC.
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Post by Ton ⓉⓞⓃ on Jun 5, 2014 20:32:58 GMT
Ki*****a E***** the parent group behind the Cumbria and Burnley SPV wind loans on AC (and presumably also the introducer C****** U**** ) have opted for the Relendex platform for their next loan ... also in Cumbria, 9% over 36 months. (Just received an email from Relendex, the loan is due to go live tomorrow, Fri 6th) A stark reminder of how competitive the P2B marketplace is becoming, and a (partial) answer to yvonne who asked on another thread about the parcity of new loans on AC. How do we know that the apparently lower interest rate isn't simply just because a bigger cut is being taken by the platform? Lower rates are something we're being condition to.
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Post by mrclondon on Jun 5, 2014 20:51:10 GMT
How do we know that the apparently lower interest rate isn't simply just because a bigger cut is being taken by the platform? Lower rates are something we're being condition to. The loan summary states 10% rate for borrower / 9% for lenders. For me, perhaps the most interesting aspect of this assuming the introducer is CU once again, is CU's endorsement of Relendex - CU being a loan introducer which in my eyes has come across very well on both TC & AC. Relendex, though, I have mixed feelings on - I have bid on 2 loans so far; both times my bid has not been drawndown, and both times I have had to chase Relendex to get my funds returned - the withdrawal requests are seemingly only processed when you complain. I've not looked recently, but as of 6 weeks ago there was nothing on the website that remotely looked like a statement so no record of cash movements etc is available.
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pikestaff
Member of DD Central
Posts: 2,187 
Likes: 1,546
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Post by pikestaff on Jun 5, 2014 21:03:42 GMT
Ho hum. I will not be following CU there. I hope we see them back on AC or TC.
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Post by bracknellboy on Jun 5, 2014 21:10:16 GMT
Indeed. Maybe we should all email CU (link via TC sponsor's page no doubt) and express our disappointment that they have taken this loan to a platform which we don't have confidence in lending through. Possibly pointless (since they will get their fees upfront and so probably not care which platform) but may make them think for future.
Would be a real shame to see CU abscond from TC or AC.
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Post by badger on Jun 5, 2014 22:41:02 GMT
The loan summary states 10% rate for borrower / 9% for lenders. Interesting that Relendex provide this information. I think it is important to know the rate the borrower has to pay, as well as the rate the lender gets. It makes a difference to the affordability for the borrower, and hence the risk. I would like to see Assetz making this information easily visible on every loan.
I am particularly concerned about B****n bridging loan, where the lender gets 13.5% but the borrower pays 27%. I raised this in a different thread but it was not answered satisfactorily. I have tried to work out the borrower rate on a number of loans (from the repayment details), and I don't invest if I consider that the spread is excessive.
EDIT - of course that only applies to the aftermarket, you don't see the repayment schedule until a loan is drawn down
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thebillet
Member of DD Central
Posts: 64
Likes: 21
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Post by thebillet on Jun 6, 2014 6:42:51 GMT
I had a sizeable chunk of money with Relendex and after a very long wait the loan did not draw down. I was very pleased to get 1% for the month or so after the auction end but the main return for me was the experience of dealing with a platform which struggled to get loans off the ground. The communication and experience with AC is light years ahead.
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Post by jackpease on Jun 6, 2014 7:40:14 GMT
>>>>I am particularly concerned about B****n bridging loan, where the lender gets 13.5% but the borrower pays 27%. I raised this in a different thread but it was not answered satisfactorily. I have tried to work out the borrower rate on a number of loans (from the repayment details), and I don't invest if I consider that the spread is excessive.
Ouch. if that's right and true of other loans then its no wonder loan flow is so poor and borrowers don't rush to draw down.
I've said elsewhere that i think we as lenders need to take a FC style haircut and accept lower rates - the current rates are far too high for borrowers and they might as well go to banks. I for one would rather see Assetz knocking one or two per cent off its fixed rates to get the deals flowing. I think we've been spoiled with rates to date and there is a real danger that good to medium risk borrowers will stay away (>>>>>>Introducer CU going elsewhere. I hope we see them back on AC or TC.)
Assetz probably recognised the need to wean itself off high rates with its 9% handbags offer
Jack
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Post by andrewholgate on Jun 6, 2014 8:10:37 GMT
The loan summary states 10% rate for borrower / 9% for lenders. Interesting that Relendex provide this information. I think it is important to know the rate the borrower has to pay, as well as the rate the lender gets. It makes a difference to the affordability for the borrower, and hence the risk. I would like to see Assetz making this information easily visible on every loan.
I am particularly concerned about B****n bridging loan, where the lender gets 13.5% but the borrower pays 27%. I raised this in a different thread but it was not answered satisfactorily. I have tried to work out the borrower rate on a number of loans (from the repayment details), and I don't invest if I consider that the spread is excessive.
EDIT - of course that only applies to the aftermarket, you don't see the repayment schedule until a loan is drawn down
The loan you are questioning came from a particular introducer. In those deals his fees come from the interest payments and what is left is passed on to the lenders. AC's fees in those deals are very small in comparison (fractions of 1%) and we pass on the bulk to you the lenders. In most deals that we put on the platform, lenders are getting 90%-95% of the interest with AC taking a very small amount.
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Post by mjl on Jun 26, 2014 11:34:04 GMT
We have read with interest the various comments about Relendex in the forum. A few points we would like to make to give a better understanding about us.
1) We always treat our customers fairly. Any slight repayment delays are due to our Guernsey procedures. We have purposely set up the process so that a licensed fiduciary in Guernsey has to approve all cash movements. This may take a little longer but it's for clients protection.
2) Given the nature of these rather chunky loans, sometimes it takes a while to do full due diligence and we'd rather be careful than sorry later. We are working hard to provide more loan auctions as soon as we can.
3) Sometimes borrowers don't draw down on their loans. This is beyond our control.
4) our transactions are transparent, so that all potential lenders can see all aspects of a loan including real interest spreads
5) the Kinetica loan was fully subscribed last Friday
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