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Single Company Portfolio Loans

Single Company Portfolio Loans

This new product for lenders and borrowers extends the flexibility that Ablrate offers, to both. Enhanced access to funds for lenders and automated allocation, coupled with flexible rolling lending facilities for borrowers, makes this type of loan a very popular choice for our community. Below are some frequently asked questions which may assist you in making your choice to lend.

When these loans are available they will show in your dashboard and you will be able to download the borrowing proposal and all associated documents.

Why are these not listed as 'Self-Select' Loans?

Some loans requested by borrowers are required for projects where draw down of the full amount of funds is not required at the outset like property development projects for example. Some loans may be for specific short term purposes which repay quickly but the business would like to reinvest in another project. It could be ongoing bridge-funding facilities for asset purchases or invoice financing.

Loans such as these are difficult to manage for lenders, borrowers and Ablrate as self select loans so we developed this flexible type of loan to solve those problems for all.

How quickly will my funds be allocated?

An initial amount of the loan will be issued that can be taken up by Lenders. When that initial tranche is taken you will not be able to allocate funds unless a lender is seeking to withdraw from the loan or if a new tranche is being issued. If so you will be automatically matched, if not your allocation will be queued on a first come first served basis.

We will give you a heads up when new issues will be made and you can allocate funds a few days before which will automatically be allocated on a first come first served basis.

How quickly can I withdraw my funds from the loan?

All withdrawals from Portfolio Loans will be on a ‘first come, first served’ basis but all withdrawals will be ahead of any new tranche being issued.

As an example; If you have allocated £1,000 and now wish to withdraw those funds from the loan, and you are the first  to request a withdrawal, you will be matched against any lender allocating funds. If a new tranche of the loan is being issued at that time all withdrawal requests from lenders will be matched first before any of the new tranche is filled.

Withdrawals times are dependent on incoming lenders being available to match with your withdrawal either wholly or partially. During normal market conditions we would expect you to be able to gain access to your funds with 5 days, but this could be instant if new allocations are queued. There are, however, no guarantees on liquidity as any such liquidity is based on new lenders being matched with those wishing to withdraw.

What type of loans will these be?

Our credit team are constantly reviewing loan requests received directly and from our introducers. In some cases we reject loans not because they are not good proposals but because they do not fit our self select model as discussed previously.

We do the same great due diligence, the same types of security and the same procedures on these loans as we do any other.

Risk Management

Each Portfolio Loan will have the same risk assessment that we have on self-select loans which has produced a default rate of less than 1% currently. The Borrowing Proposal for each Portfolio Loan will detail the basis of the loan and detail the company you will be lending to It will also detail the risks specific to that Portfolio Loan.

Portfolio Loans are not a savings account and do carry the risks of the underlying loan.

Do I get my returns monthly?

Yes, loans Single Company Portfolio Loans will be paid monthly unless otherwise stated in the Borrowing Proposal.

Am I lending to Ablrate?

Simply, no. Unlike some other P2P lending platforms we do not borrow money from lenders to lend on. All underlying loans will be referenced on the agreements you can download from your Current Investments section. This system makes sure you are protected as a lender.

You are lending directly to that underlying borrower automatically on a bilateral basis. Ablrate acts as your lending agent in these loans and our subsidiary Ablrate Assets Limited acts as the Security Agent on your behalf.

Will I be able to trade these on the Secondary Market?

Not directly, no. These loans are intended to be flexible for draw down and will have multiple draw down dates with one maturity date. To enable these to be traded in the secondary market would be problematic as price differential between tranches could occur.

The loans use the secondary market technology to automatically match allocations and withdrawals of the loans at par (i.e £100 for £100 of capital remaining in the loan)

As the loan grows will my security diminish?

When a borrower instigates a loan the borrowing proposal will detail the security available. Each time the borrower wishes to draw more money it must be covered by security at least as good as the previous tranches.  In general these loans will be drawn for a specific purpose and the security elements will be foreseeable and detailed in the borrowing proposal.

Enhanced Access

When allocating funds you will be automatically matched to outgoing lenders. In normal conditions you should be able to allocate immediately and withdraw from the loan when matched with incoming lenders.

Automatic Allocation

We will give notice when each new tranche is released. You may make your allocation at that stage and be automatically invested in the loan. Outside of new borrowings your funds will be queued and automatically matched to outgoing lenders.

IFISA Eligible

Opening an IFISA account takes less than 5 minutes. All you need is to open an account and have your National Insurance number handy. You can then open your IFISA and begin lending through Portfolio Loans