The borrower pays for the instant returns from the funds drawn down when the loan closes. These fees are also due should a loan not fill or not draw down, however, although a borrower is obliged to pay Instant Returns in the event of a loan not filling it is possible that a borrower would not pay these fees due. The figures involved may be small and may make legal action against the borrower commercially non-viable. Please do not invest in a loan on the basis that a loan may not fill and you will be assured of Instant Returns. The vast majority of loans that make it to the platform fill, so we do not have enough data to assure lenders that ALL potential borrowers would honor this commitment.
Who pays for Instant Returns?
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Complaints Policy
At Ablrate we are committed to providing you with excellent customer service and want you to be completely satisfied with the service you receive. If you are or have been dissatisfied with any of the services we have provided for you, please let us know so we can understand your concerns, investigate and respond. Ablrate have in place an effective and transparent procedure for the reasonable and prompt handling of complaints. How to complain We aim to resolve your complaint quickly and efficiently. To help us to deal with your complaint, we will ask you for the following information: • Your personal details, including your contact details • A brief overview of your issue • What you would like us to do to resolve it You can choose how you want to complain to us, our staff are on hand to help by: Telephone: +44 (0) 1491 410 400 Email:...
Can you explain the fees and how these are treated in a default?
It is important for us to be clear about the charges that are paid over the Ablrate platform and of the impact that those fees and charges may have on the amount recovered by investors from borrowers in default. When crafting our policy we have a regulatory obligation requiring us to pay due regard to the interests of our customers and treat them fairly. We also have to pay due regard to the information needs of our clients, and communicate information to them in a way which is clear, fair and not misleading These are the charges that can be made over the Ablrate platform to Lenders and Borrowers:
Lenders Fees
Account Fees - There are no fees associated with opening or maintaining an account with Ablrate. Loan Exchange Fees - There is a fee of 0.25% of the value of the trade for a seller and a buyer. At...What is the difference between an amortising loan and an interest only loan?
An amortising loan is like a traditional repayment mortgage where the borrower pays a constant amount over the life of the loan. The loan repayments are composed of capital and interest, with an increasing amount of capital paid off every month. An interest only loan is the same as an interest only mortgage where the borrower pays interest payments over the life of the loan and repays all of the capital in one lump sum at the end of the term. The main difference for a lender is that an amortising loan reduces the risk for the lender every time a repayment is made, because you are having some of your capital investment repaid. If you are investing in an interest only loan, it is important to consider whether the borrower will be able to make the entire repayment in one go at maturity.
Lending Options via SIPP/ISA/SASS
Ablrate is able able to offer SIPP accounts through Morgan Lloyd. We are one of only 9 approved peer to peer lending platforms. Morgan Lloyd is also able to accommodate SASS schemes and we welcome those who would like to invest via this kind of pension schemes. Please follow the Morgan Lloyd link for more details, they will walk you through the process with you and get you set up as soon as possible.
Your SIPP or SSAS enjoys some really attractive tax benefits. As you would expect, HMRC regulates these types of pensions to ensure that the tax advantages aren’t abused.
When considering any type of loan (either directly or indirectly) it is therefore important that you are aware of two key restrictions that form part of the HMRC regulations:
Firstly it is not permissible for your SIPP or SSAS to invest in any loan where you are...
How do you handle my funds when it is on an account?
Your funds are held in a segregated client account the ‘Ablrate Client Account’. ‘Segregated’ means that your money does not form part of our assets in the unlikely event that we go out of business. We hold a ‘Client Money Acknowledgement Letter’ from NatWest Bank recognising that the Client Account funds are separate from our funds. The Client funds are held in one account, however, each Lending Members’ funds are identified on our Platform allowing us to individually identify and allocate funds to a Lending Member.
Interest payment is due today, why is it not showing in my account?
If a payment is not showing in your account it can be for three reasons: 1. The payment may have been paid after hours on the payment date. In this case the payment is made on the next working day. 2. If a payment has not been received from the borrower the payment will not appear in your account until such payment is received. If this is the case then we will update the Admin section of that loan with an explanation of the late payment and what we are doing about it. 3. If a payment date falls due over a weekend from the borrower, we may not receive the payment until the following Monday. You can track the status of all payments in the Repayment section of each loan (available from the ‘Details’ section)
Could the return on my investment be different to that advertised, over time?
The rate advertised on loans that you invest in will be the rate you receive if the loan goes the full term and is fully paid. However, this return could be reduced if the borrower is unable to make payments and you may even make a loss if the borrower does not pay in full. There are no guarantees on Ablrate and your capital is at risk. The Ablrate Loan Exchange allows you to buy and sell loans if there are willing buyers and sellers (and this is not guaranteed), but if you sell your loans at a discount your return will be lowered by the amount of that discount.
What are Instant Returns?
The Instant Returns feature is unique to Ablrate and was introduced by Ablrate to solve the issue of lost returns while the loan is being completed. For example, if a loan takes 2 weeks to fill you have lost two weeks of interest. We wanted to solve that. How the Instant Returns feature solves this is by rewarding early bidders with returns from the day they make a bid. So if the Borrowing Request runs for one month and the prevailing rate of the loan is 12% you would, if you bid on the first day, get 1% credited to your account on drawn down. If you bid halfway through the month you would get 0.5% etc. We think this is a fairer way of rewarding bidders and encourages loans to close early. Of course, it also gives us the incentive to borrowers to make sure loans drawdown on time! Which...
What would happen if Ablrate ceases business or chooses to wind down?
Introduction Ablrate is always working to move forward with plans to scale our business, provide ever better technology and bring quality loan opportunities to our lenders. There may be, however, circumstances where our strategy is no longer viable, such as a change in market conditions, regulation or the economic conditions as a whole. In this scenario, and as also required by regulation, we have created a ‘Wind Down Plan’. This plan is intended to be an efficient and comprehensive plan for winding down the business so that there is minimal impact on those who have made investments in loans through Ablrate and also those with whom we do business. What is the Wind-Down Plan? There are a number of scenarios that have plans, such as if a disaster was to occur how our business would continue. The Wind Down Plan outlines the strategies employed to wind the business down in...
Are there any fees?
There are no fees to register on the platform or to continue to be a member of Ablrate. There is a £100 admin fee should you choose to transfer your IFISA to another provider and a £1 charge for any withdrawals under £5. There is no fee associated with selling loans on the Loan Exchange at the moment but we reserve the right to charge a fee in the future, these fees will be no more tan 0.25% of the value of the purchase or sale. To transfer out of an IFISA we pass on the charges charged to us.
Is Ablrate regulated by the FCA?
Yes, Aviation and Tech Capital is authorised and regulated by the Financial Conduct Authority (No. 724444). Ablrate and Ablrate.com are trading names of Aviation and Tech Capital Limited. Registered in England and Wales No. 07940046. Aviation and Tech Capital Limited is not covered by the Financial Services Compensation Scheme. Aviation and Tech Capital is registered with the Office of the Information Commissioner (No. ZA033501).
What are the risks of lending?
Treating customers fairly is not just a regulatory obligation, it is at the core of our philosophy and practices. Inherent in this is explaining the risks of investing in loans requested by borrowers on our platform. We urge you to read the risk warnings below and consider these risks before making any commitment. Your capital is at risk and any potential interest payments are also at risk should a loan default. RISK FACTORS AN INVESTMENT IN LOANS ON ANY PEER LENDING PLATFORM IS SPECULATIVE AND INVOLVES RISK. EVEN LOANS THAT ARE BACKED BY ASSETS, SUCH AS THOSE ON ABLRATE, HAVE A POTENTIAL FOR DEFAULT WHERE A LENDER COULD LOSE ALL OF THE FUNDS INVESTED. ACCORDINGLY, PROSPECTIVE INVESTORS SHOULD CONSIDER THE FOLLOWING RISK FACTORS. THESE RISK FACTORS MAY NOT BE A COMPLETE LIST OF ALL RISK FACTORS ASSOCIATED WITH A LOAN VIA ABLRATE. Investing in loans involves a high degree of...