Ablrate Results – 6 Month Results

6 Month Results

The first 6 months results of investing through the Ablrate platform as as follows –

Expected ROI (Annualised) 12.50%
Actual ROI (Annualised) 5.32%

The ‘Expected ROI’ figure on this example is taken from Ablrate’s own marketing material (an average of 10-15%). The ‘Actual ROI’ looks bad but there are a few things to factor in, firstly I utilised the secondary market place for most of my buy-in’s to loan parts inataily. Ablrate offer a premium/discount secondary market place with a small transaction fee. Some of the loan parts were bought at small premium too when considering their relative position in the returns cycle. So the returns for the first couple of months of my account were actually negative. If I was to exclude those factors I think the the returns would be much closer to the ‘Expected ROI’ figure.

Also within the first 6 month period turbulence was experienced in respect to specific loan repayments. I’m not inclined to discus specific loans but the kind of turbulence experienced included, late payments, missed payments and ultimately a number of loans being suspended. While problems are to be expected with-in the P2P lending sector, what really matters is a platforms ability to remedy those problems. Over the period I would say 20.00% of my loan holdings have had problems but half of those were brought back on track, the other 10.00% have been adequately updated and are within weeks of a proposed remedy. 10.00% problematic loan parts are about in line with what to expect across the lending sector so not a major concern.

My only slight disappointment with Ablrate so far is that their loan origination is one of the slowest I have come across. Meaning minimal diversification (1% or lower in each loan) is neigh on impossible within a reasonable length of time. Unless you utilise the secondary market (which I did) but that costs returns upfront. Of course the positive spin is they are taking longer in offering decent quality loans, which I recognise. The loan offerings I have looked at seem to be a higher quality compared to some other higher volume platforms.

Company news

By the end of this period completed loans were in excess of £42’000’000, interest paid to borrowers was over £5’200’000. Ablrate announced the intention to launch a funding round via the CrowdCube equity platform at the start of 2019, more to follow on this in the next results update.

Conclusion

I really like Ablrate from what I have seen so far, they seem like a well run platform full of quality professionals who seem to take their responsibility for lenders money seriously. Loan generation is a bit of a let down but I accept it in exchange for an improved level due diligence and loan quality offering. As far as my portfolio goes the traditional parameters I apply of returns over time are restricting further deposits right now. So yes deposits will be increased but it’s just a case of when the realised returns are high enough to allow it.

Ablrate – An Introduction

Introduction

Ablrate was established in 2014 as business focused P2P lender. It offers asset backed loans in property, capital equipment and eco- projects. The minimum initial deposit for Ablrate is £100 (via bank transfer only) with a minimum loan deposit of £1. Loans are either ‘interest only’ or ‘amoritising’. Ablerate advertises a lender return of 10-15% annualised. Ablerate is fully authorised and regulated by the FCA and gained its IFISA permission from HMRC in August 2017.

Ablerate also offers a secondary market place for early loan part disposals. It works on a premium/discount offering meaning a seller can sacrifice some interest rate while a buyer picks up a higher interest rate to reflect the risk exchange.

 

Ablrate dashboard 

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The Ablrate Dashboard

Ablrate has a modern, clean looking dashboard that displays everything you need to know about your current portfolio.

The top box – shows a headline figure for any new loans available on the platform, clicking browse now will take you a details page.

Cash Balance box – shows any unassigned funds as ‘Funds Available’ these can be withdrawn immediately (minimum loan assignment is £1 and in whole pounds thereafter). This box also shows your ‘Total Fund’ balance. This is all of your active loans plus ‘Pending Loans’, plus ‘Funds Available’ on Ablerate.

Invested Funds box – this is your balance currently assigned to active loans, any balance assigned to loans not yet activated is shown as a separate figure under ‘Pending Loans’. Ablrate do not pay interest on ‘Pending Loans’.

All Interest Earned box – shows your interest to date. This figure can be a little misleading as it includes interest earned on held loans, cashback and interest on sold loans, hence why the figure does not tally up with the total funds balance. This box also includes ‘Next Payment Date’ and ‘Next Payment Amount’ while this is a handy metric, unfortunately if you experience a non payment on a loan the figures get stuck until that late payment is made, making the figures next to useless.

Secondary Market box – this displays any bids or offers you currently have on the secondary market place. When you bid (to buy) a loan part your bid is entered into a list with most attractive bid ranking highest. The same is true when offering a loan part for sale. The quicker you want to sell or buy loan part the closer you need to be to the best either offer or bid. If you don’t mind waiting for your bid or offer to be matched you can set it a little further away from the optimum meaning you can protenital make a better return for waiting a little longer. As with all secondary market places sale availability is subject to market conditions.