|
Post by parag on Apr 30, 2015 12:37:50 GMT
New loan request ABL005, under our collaboration with the BLX, is now live.
£15,600 over 3 years at 10% p.a.(gross). Assets valued at £52,000 in total.
Assets
1965 JAGUAR E-TYPE 4.2L XHE SERIES 1 S1 RAGTOP COUPE (VIN No. <snip>). This classic vehicle is being held in safe storage by BLX. The car is in need of some refurbishment and has been valued accordingly.
2013 FORD TRANSIT 155 T350 RWD 2198cc (Registration <snip>). Title has been taken over this vehicle and BLX's interest has been noted and recorded with HPI (www.hpicheck.com).
2011 FORD TRANSIT BREAKDOWN TRUCK 2402cc (Registration <snip>). Title has been taken over this vehicle and BLX's interest has been noted and recorded with HPI (www.hpicheck.com).
For more information, please see the details on the loan listing.
|
|
|
Post by parag on Jul 24, 2015 13:44:09 GMT
New loan request ABL011, under our collaboration with the BLX, is now live. £15,249 over 3 years at 10% p.a.(gross). Assets valued at £40,794 in total. AssetsWENZEL XO55 CMM-Y (Precision measurement machine). BLX have recorded their interest in this asset using HPI (https://www.hpi.co.uk). The manufacturer of the machine, Wenzel (http://www.wenzel-cmm.co.uk), have given BLX a buy-back pledge to the value of £22,000 in the event BLX need to repossess and sell the asset in the event of default. The following link shows the same machine being sold on an ex-demo basis by Wenzel for £44,500 + VAT: www.wenzel-cmm.co.uk/xo55-ex-demo-machine/view/492006 - JAGUAR X TYPE SE D. BLX have recorded their interest in this vehicle using HPI (https://www.hpi.co.uk). For more information, please see the details on the loan listing. RISK WARNING: As with any investment, you may lose part or all of your capital. Please read our 'Risk Statement': www.fundingempire.com/business-loans/risk-statement
|
|
|
Post by parag on Aug 11, 2015 15:49:09 GMT
New Loan ListingNew loan request ABL013, under our collaboration with the BLX, is now live. £9,360 over 3 years at 10% p.a.(gross). Asset valued at £12,500. Asset2003 - Volvo FM380 Car Transporter fitted with LOHR 10 Car Equipment (LOHR VOSA ID: A246812). Title has been taken over this vehicle by BLX and their interest has been noted and recorded with HPI ( www.hpicheck.com ). For more information, please see the details on the loan listing. RISK WARNING: As with any investment, you may lose part or all of your capital. Please read our 'Risk Statement': www.fundingempire.com/business-loans/risk-statement
|
|
shimself
Member of DD Central
Posts: 2,561
Likes: 1,170
|
Post by shimself on Sept 7, 2015 15:57:40 GMT
The latest loan looks like it won't fill. I've done my bit, these are quite small loans 10K ish, which go via a business lender who are charging much higher rates than we get (sort of 10% for us, they get 20%), with a payment guarantee by the business lender and with security on things like cars. I feel much safer with these than with SS and LI where I don't really buy the security. What do others think?
|
|
|
Post by reeknralf on Sept 7, 2015 18:45:40 GMT
I'm in on most of these, and agree they look better deals than SS.
The valuations I've checked are very full indeed. For instance, I know a bit about diggers, so have checked these. Ebay has identical diggers listed, by dealers, for 20% less than the valuations. Deduct the dealer's margin, some fees and unpaid interest, and the 70% LTV's would not be enough to avoid a non-trivial loss. If the originator, and the borrower folded I would definitely expect capital loses. This is perhaps unlikely, but how much do you want to expose yourself to a single originator/guarantor? I've had nearly my fill of these loans, and perhaps others feel the same which is why uptake has slowed.
|
|
madpierre
Member of DD Central
Posts: 303
Likes: 374
|
Post by madpierre on Sept 7, 2015 19:28:30 GMT
I'm also in on most too, not really because I like them but for lack of decent lending opportunities elsewhere. The valuations are too optimistic (no surprise there as I rarely see one that isn't on any platform) and the LTVs are too high. I therefore only put in a small amount mainly in the interests of diversification. However if these loans were not amortising I wouldn't go anywhere near them.
|
|
|
Post by parag on Sept 8, 2015 17:47:20 GMT
In response to a few points raised above: - The FE / BLX collaboration is still in its infancy. BLX are working towards reducing their LTV on deals but if this is taken too far it will affect their ability to write volume. It is a fine balancing act but one I know they are working hard on.
- BLX always seek to lend at trade value or below at the point of origination.
- BLX take other 'kit' as additional security in most cases to strengthen the deal and to reduce their LTV.
- In regards the digger on Ebay, there are a number of factors that affect the value of diggers i.e. number of hours, age etc. Without knowing all the details, my concern is that it may not be a like for like comparison.
- Independent dealers are paid by BLX to carry out valuations; retail and trade values. BLX also do their own research online to then make sure the valuations they have been provided with are accurate.
- In regards depreciation, the age and type of assets BLX lend against are subject to depreciation but not as much as new vehicles, IT, office equipment etc. It is also worth noting that these loans amortise monthly which should offset most if not all of the depreciation.
- If there were to be a capital loss on repossessed assets, as BLX only lend to home owners and always take personal guarantees, they are able to pursue the borrower through the courts for the shortfall or come to an out of court settlement. BLX have taken a number of borrowers to court and have been successful in achieving a judgement c.99% of the time.
- The number of performing loans, and the margin achieved from them, cover and far exceed any losses BLX and ABF have encountered from non performing loans to date.
- The lending model that BLX employ is the one that John from BLX used in 1pm Plc. which was floated on the AIM and the one BLX' sister company Asset Bridging and Funding (ABF) have used for the last 5 years successfully.
As with any form of lending, there exists the possibility of a capital loss and I hope the responses above have addressed the queries / concerns raised by reeknralf, madpierre and Jaydee. John will be best placed to give further details on the above and if anyone wishes to contact him directly they can email him at john@theBLX.com We are also working on a number of other new lending products to bring to you hopefully by Jan / Feb 2016. Kind Regards, Parag
|
|
shimself
Member of DD Central
Posts: 2,561
Likes: 1,170
|
Post by shimself on Sept 8, 2015 19:08:16 GMT
In response to a few points raised above: .......If there were to be a capital loss on repossessed assets, as BLX only lend to home owners and always take personal guarantees, they are able to pursue the borrower through the courts for the shortfall or come to an out of court settlement. BLX have taken a number of borrowers to court and have been successful in achieving a judgement 99% of the time..... Can you verify that statistic; other platforms have had trouble enforcing PGs it'd be interesting to see any real data (taking 99% to be a feel figure not an actual statistic)? Thanks
|
|
|
Post by parag on Sept 8, 2015 19:13:10 GMT
That figure is for obtaining a successful judgement against the borrower not the actual success rate of enforcing the judgement.
|
|
shimself
Member of DD Central
Posts: 2,561
Likes: 1,170
|
Post by shimself on Sept 8, 2015 19:17:38 GMT
That figure is for obtaining a successful judgement against the borrower not the actual success rate of enforcing the judgement. May I respectfully suggest that's not a useful figure- and I still doubt it's a real figure, I doubt there have been 100 (strictly 67) defaults to date
|
|
|
Post by mrclondon on Sept 8, 2015 19:35:17 GMT
Some care is needed around the discussion of LTV's of the BLX sourced loans.
Hover on the ? adjacent to the LTV on the loan 'Overview' tab and the following text is revealed:
"This loan to value figure has been calculated using the loan request value and the sum of total repayments due under the hire agreement which we have a debenture and notice of assignment over."
Now switch to the 'Security / Asset Details' tab, and note there is a different LTV listed "BLX's Loan to Value (LTV)".
With ABL 15 these LTV's are broadly similiar at 73% vs 77%, but in the case of ABL 14 BLX's Loan to Value (LTV) is just 33.5% vs the cashflow LTV of 69.5%.
|
|
|
Post by parag on Sept 8, 2015 19:37:17 GMT
shimself John will be posting a fuller response tomorrow morning to elaborate and explain. Regards, Parag
|
|
|
Post by blxjohn on Sept 9, 2015 9:08:37 GMT
shimself Parag has asked me to clarify the litigation process involved in our asset finance activities. When we lend, we either write the paper in the personal names of the client or they provide personal guarantees for a limited company; in almost all cases the individuals will be home owners with a maximum of 75% LTV against their personal properties. The exception has been where we have lent to tenants (or take their guarantees) but in these cases we will only agree the deal where we physically hold assets and/or valuables in secure storage. When a transaction is terminated, the assets are sold and the individuals pursued for the remaining balance. We always try to agree settlement terms with the individuals rather than take action thorough the civil court. I have been involved in perhaps 20 court cases since 1998 with 1pm and our sister company, ABF; I can only remember one case with ABF where a judgement was not granted. This was because one digit in the client’s postcode was copied incorrectly and he argued that he did not receive the court papers. We ended up agreeing a deal with the client rather than going to a further hearing. I cannot immediately verify Parag’s statement of “achieving a judgement 99% of the time”, but I will look back at ABF records over 5 years and give the data and evidence to Parag. (I think we have achieved 100% success in judgements if we ignore the case mentioned above, where we did not need to proceed to a second hearing.) Regards John Stickley
|
|
|
Post by reeknralf on Sept 9, 2015 17:16:58 GMT
In response to a few points raised above:
- In regards the digger on Ebay, there are a number of factors that affect the value of diggers i.e. number of hours, age etc. Without knowing all the details, my concern is that it may not be a like for like comparison.
The one I looked at was the 2005 jcb 8014 (ABL10). I drive these machines, which is why I knew the valuation was wrong without even checking ebay. The nearest on ebay today is a 2010 model, so some 5 years newer. It has 750 hours, which is low for a 2010 model, let alone a 2005 model. They're asking £6250, as compared with the BLX valuation of £7000 for a much older machine. £7000 on ebay gets you a 2012 model with low hours. The BLX valuation is probably 20% too high, that combined with an LTV at 70% leaves little room.
|
|
jfm
Member of DD Central
Posts: 135
Likes: 67
|
Post by jfm on Sept 9, 2015 21:20:33 GMT
The asset valuation £10995 on ABL016 appears to be an offer rather than bid quote.
|
|