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Post by chielamangus on Aug 18, 2017 18:08:27 GMT
The geezers at *X*M are a smart crew. They delay their interest payments well beyond the due date, or, in the latest case, they go off on holiday without paying them at all. And they get a new loan at 2.5 percentage points lower than the outstanding loans which they are failing to pay on time! Sounds like a very special relationship somewhere along the line. A pity we investors aren't in on it as well.
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oldgrumpy
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Post by oldgrumpy on Aug 18, 2017 21:08:25 GMT
The geezers at *X*M are a smart crew. They delay their interest payments well beyond the due date, or, in the latest case, they go off on holiday without paying them at all. And they get a new loan at 2.5 percentage points lower than the outstanding loans which they are failing to pay on time! Sounds like a very special relationship somewhere along the line. A pity we investors aren't in on it as well. Interesting. Despite delayed payments recently, a reduced rate. Could it possibly be that AC are not charging the company less, and know that few lenders will buy at 8% when the rate was increased by 0.5% to 10.5% when all the five earlier loans were renewed. That would mean that AC actually hope most of the new £500K will lodge in the QAA, bolstering the provision fund applying to that and other protected accounts. Cunning plan? Don't like 8%? Put a buying order on the earlier tranches; they've got 11-18 months left to run. AC, have the risks reduced on lending to this borrower, thus warranting a lower rate of interest?
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DeafEater
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Post by DeafEater on Aug 18, 2017 21:12:28 GMT
I was a bit surprised to see them turn up in the latest 'new loans' email because I didn't know they already had loans at AC. They certainly have a large tab running at Archover at the moment with another 330k loan filled a few days ago.
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ceejay
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Post by ceejay on Aug 19, 2017 8:01:50 GMT
Don't like 8%? Put a buying order on the earlier tranches; they've got 11-18 months left to run. Good theory. However there are precisely 0 units available in any of the other tranches atm.
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SteveT
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Post by SteveT on Aug 19, 2017 8:10:54 GMT
Don't like 8%? Put a buying order on the earlier tranches; they've got 11-18 months left to run. Good theory. However there are precisely 0 units available in any of the other tranches atm. Set buying targets for all 5 existing loans and you'll start accumulating units soon enough, especially in the large first tranche.
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Steerpike
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Post by Steerpike on Aug 19, 2017 9:08:48 GMT
I was a bit surprised to see them turn up in the latest 'new loans' email because I didn't know they already had loans at AC. They certainly have a large tab running at Archover at the moment with another 330k loan filled a few days ago. That is a different company, I believe that Archover finance the import business whereas Assetz (Thincats) support the export business.
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rick24
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Post by rick24 on Aug 19, 2017 13:07:11 GMT
It's difficult to substantiate the conspiracy theory without knowing how much *X*M are paying gross. Are lenders being offered a smaller cut of a static gross interest rate or have Assetz had to lower the gross interest rate in order to compete with alternative sources of finance? We don't know. The latter possibility has some plausibility, I think, since the longer *X*M's profitable trading history, the lower the interest rate they can expect to pay.
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DeafEater
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Post by DeafEater on Aug 19, 2017 13:36:22 GMT
I was a bit surprised to see them turn up in the latest 'new loans' email because I didn't know they already had loans at AC. They certainly have a large tab running at Archover at the moment with another 330k loan filled a few days ago. That is a different company, I believe that Archover finance the import business whereas Assetz (Thincats) support the export business. Ah yes well spotted. However the companies house entry for the Archover borrower lists two directors, both of which appear against the AC borrower's entry. Can't say it's giving me a warm fuzzy feeling.
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pikestaff
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Post by pikestaff on Aug 19, 2017 16:40:26 GMT
...I believe that Archover finance the import business whereas Assetz (Thincats) support the export business. Not ThinCats. *X*M quit TC for Assetz at about the same time that a loan introduced by related company T*E*L was listed on Assetz. The borrower (south coast plumber) subsequently went bust, as have most of the borrowers that were introduced by T*E*L to TC. It's entirely possible that *X*M are better at their business than T*E*L are/were, but they are not for me. All that said, it is interesting that Assetz have listed a new loan for *X*M, and at such a low rate. At the time Assetz captured *X*M from TC, leading to the first four tranches being listed, they were clearly targeting TC's deal flow and they may well have trimmed their margin to get the business. My guess is that half of the difference on the rate on the new loan is additional margin for Assetz and half is real. Targeting TC's territory did not work out particularly well for Assetz and they have since moved away from this area to focus on (supposedly) lower risk lending. Apparently *X*M still meet their criteria...
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Steerpike
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Post by Steerpike on Aug 19, 2017 16:53:25 GMT
Yes that is why I put ThinCats in brackets it was just for history.
Loans to the "associated" company *X*M F****** on Archover tend to be at lower rates and interestingly *X*M F****** have lent a large sum to *X*M
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