South Coast Plumbing & Mechanical Services Loan Tranche 1&2

According to the paperwork, they have picked up new business but the customers are dictating terms so incoming payments are going out from 30 days  EOMFI (End of Month From Invoice) to 45days and 60days EOMFI so they need more working capital in order to be able to settle their bills whilst waiting for their invoices to be settled.

Unfortunately this is the way the world seems to be going, my employer used to be able to demand 30days from invoice date, this then slipped to 30days from end of month of receipt of invoice, and we now deal with people on 45, 60, 90 and 120 days from end of month of receipt of invoice. Plus we now have customers wanting 2.5% prebates plus 2.5% early settlement discounts if they settle before 120 days from end of month of receipt of invoice and yes I do mean prebate and not rebate.

I've increased my stash a little. I would think that drawdown will not be delayed much following the end of the auction, and shadow bids might well be called in within a couple of weeks from now.

You probably bought some or all of the ones I put up for sale about 15 minutes ago. Just don't like the terms on the new loan or the shift to 2nd charge + PG's. Might have stayed in if it had been 14 or 15 percent but not at what is being offered.

It's listed in the 'upcoming investments' tab

I agree, the interest rate offered doesn't seem commensurate with the risk involved in this 80% LTV loan.  And I don't understand why the stated value of the main debenture is so much lower now -- it's roughly half -- than it was just a few months ago at the time of the first loan. 

Another worrying thing is the PGs.  Maybe I missed it, but in looking through the Credit Report I didn't see any suggestion that the guarantors had any assets to back up those PGs other than their residence, which already is included in the security.  If I offered a £2M PG, could I get AC to lend me £1.5M so that I could go for a nice long cruise? 

I think I'm going to sit this one out, and recover my initial investment when this second loan draws down.  If this auction goes true to the current auction form, there will be plenty of units available to purchase in the Aftermarket after drawdown, and maybe things will be clearer by then.

On a related note, I can understand why there already would be pre-bids showing for this new loan.  But how can there be User Bids placed already, inasmuch as the auction doesn't start until tomorrow?

In the CR they say that the report agency has changed their scoring method, asif to say it's meaningless, whereas perhaps the earlier much better one was meaningless.

I'm reducing into tranche 2

It looks like the riskiest period is the first few months to a year... Invest after that time?

u want to swap for some of mine ?