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Post by oldnick on Jun 19, 2014 21:26:04 GMT
Can you stop talking pollocks please. AC is a serious business. You've got me hook line and sinker. It's high time somebody tackled the scale of this. I hope this doesn't look like I'm just trying to be your chum, my sole aim is to net all the puns and finish this run.
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j
Member of DD Central
Penguins are very misunderstood!
Posts: 2,188 
Likes: 540
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Post by j on Jun 20, 2014 18:27:10 GMT
Can you stop talking pollocks please. AC is a serious business. You've got me hook line and sinker. It's high time somebody tackled the scale of this. I hope this doesn't look like I'm just trying to be your chum, my sole aim is to net all the puns and finish this run. One must bow to your great fishiness. Even a penguin cannot compete with this
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Post by rudry2677 on Jun 20, 2014 19:01:03 GMT
I have heard that there is a country where whales carp on..anon
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Post by rudry2677 on Jun 20, 2014 19:02:49 GMT
It's a tiddler of a country....
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Post by rudry2677 on Jun 20, 2014 19:03:59 GMT
......where the men play rugby and the women are sewin.....
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kermie
Member of DD Central
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Post by kermie on Jun 24, 2014 18:53:35 GMT
Sorry to get back to the point but why the heck is the fork lift icon being shown on this loan if the "approximate value" is zero? I mean, 8.75% with only a PG and a 2nd charge on a residence (containing family?) - It's pretty poor isn't it ? and it's to write and install software ? That never goes wrong does it? and bespoke software - what's the value of that to anyone else - zero ? Come on guys - I've got money to invest - what am I missing here? The LTV on the security is quite low (sub 50%) - that's simply why the interest rate is low....'nuff said. The return is lower than other loans because even if the loan defaults, there's a very good chance of getting your capital back (something I've picked up loud and clear from Andrew Holgate: - losses and defaults are quite different things). So I guess I take the view that it is priced for risk of loss rather than priced for risk of default. Re: the perils of writing software...as a software engineer in the hard-nosed commercial IT world myself, I couldn't possibly comment 
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Post by chris on Jun 24, 2014 19:08:39 GMT
So I guess I take the view that it is priced for risk of loss rather than priced for risk of default. This is correct. The probability of loss and default are linked but separate and we price to the risk of loss, rather than liquidity or risk of default as other platforms seem to target. There's a complex pricing structure behind the scenes that weighs up numerous factors. Hopefully over time we'll be able to lift the curtain a little bit on how that model works, giving you more and more information.
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Post by andrewholgate on Jun 24, 2014 21:25:20 GMT
Point taken on the icon. I guess it is a case of not having enough icons that suit the need.
Personal assets are often pledged to support a business and it shows willingness from the directors to support the business with their own (tied up) wealth.
I will always say, if you don't like the loan, don't invest.
A
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Post by Ton ⓉⓞⓃ on Jun 24, 2014 21:59:40 GMT
But the fork lift is supposed to mean secured by business assets - but there aren't any or they are valued at zero - so why are AC showing it? The company has negative net worth according to the report and would have gone under save for the large loan from the directory to the company and so where is the 50% LTV from? There is no value in the company. The company just send lots of emails, there's nothing tangible. They are barely keeping heads above water, we're being asked to get them out a no-profit situation. I guess if the company director's mum and dad add their house to the mix, the LTV would go down to 25% and the rate would then be 6%? I find the blurring of company assets and personal assets quite irritating but I accept that perhaps it's always been like that with AC but I loath PG and private residences as security in terms of the amount of time it would take to recover the value (if ever) But most of all I loath AC using the forklift icon to indicate something that is clearly not there. I'm no expert but the family home you refer to seems to have about half a million in equity, no doubt the debenture on the business is so we can have our name on the main thing the loan's all about, the software. I'm sure we could come to some sort of agreement with the develops to sell it to a competitor if we had to. I admit that is starting to get farfetched, but if we had to. I'm not going to bet the farm on it tho'.
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Post by andrewholgate on Jun 24, 2014 22:12:14 GMT
I'm not sure there is a farm as security.
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Post by oldnick on Jun 24, 2014 22:16:10 GMT
Only, maybe, the one all elderly family pets go to live on eventually...
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Post by Ton ⓉⓞⓃ on Jun 24, 2014 22:18:53 GMT
I'm not sure there is a farm as security. That's why you're so nasty to badger last time! I shy away from badgers. Riddled with TB apparently.
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Post by Ton ⓉⓞⓃ on Jun 24, 2014 22:25:19 GMT
Are ladies a better bet with a loan than guys?
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j
Member of DD Central
Penguins are very misunderstood!
Posts: 2,188
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Post by j on Jun 25, 2014 17:56:25 GMT
It looks like the low rate has had a lot to do with the slow uptake of this one. A £100k loan at say 11-13% would have flown & closed in hours, this one has been struggling & still needs another 25% fill up. I wonder if underwriting is in the pipeline. Security is OK for what i is but just goes to show that rate is equally as important. All imho
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Post by Ton ⓉⓞⓃ on Jun 25, 2014 21:34:07 GMT
I'm no expert but the family home you refer to seems to have about half a million in equity,Hi Ton ⓉⓞⓃ, this is where we see different things. You see half a million, I see family home. Unless all the occupants of the home are party to the agreement, it'll be impossible/awkward/immoral to force them to move out so that the value in the house can be realised. Now if a half million building the company owned and occupied was offered up, that would be a much better thing. I saw your point and I take on board that it's a home with people living in it, she seems to have other properties which she could sell and fulfill her obligation via the PG. I know that's a rarity to talk of PG's being honoured but it's that or the family house. Afteral she's offered it, it shows how serious she is about this, it will motivate her. Of course we (AC) didn't demand she do this. I felt similar to what you're saying with the Kent Bridge where we hold an old lady's family home, I imagine where she grew up, but she's now in a home (I think). And I imagine the next generation is sorting out her affairs.
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