This Week’s 16% Loans From rebuildingsociety

Here are the latest high-rate loans that are open for you to bid on from rebuildingsociety, the P2P lending company that finances riskier loans to businesses.

Update on 21/12/2014: all the loans below are now fullly funded, but you can still under-cut bids from other lenders.

Bertinaley Care Limited, business expansion loan, B grade

rebuildingsociety's own grading System rates this borrower a B in its scale from A+ to D.

rebuildingsociety is new and presumably, therefore, it still has some things to learn about understanding and grading its borrowers.

The average interest rate is currently 16.33%. You might be able to bid higher or lower.

The loan is for £40,000. Nearly £38,000 has already been funded, but since lenders can underbid each other with lower interest rates this doesn't mean you have to rush.

The loan is for 60 months to this small care and nursing home group established nearly nine years ago.

This is a second-charge loan, which means that, in the event this loan goes bad, you're further down the pecking order in trying to recover your money than the first lender and the need for a second charge can indicate a higher risk. However, rebuildingsociety estimates that the value of the propertyproperty being used in security just about covers the first and now this second debt.

The directors themselves have borrowed at least £200,000 from their own company.

The company says the expansion will increase its rooms by 35% and, with it, its profits by at least 150% due to the increasing elderly demographic.

The auction is due to finish on 24 December 2014.

Awc Training Ltd, business expansion loan, C grade

The average interest rate on this loan is currently 19.4%.

The loan is for £42,000. Over £32,000 has already been funded.

The loan is for 60 months to this company that provides mostly government-funded NVQ training courses. Business profits and assets have shown a growing trend, since it began a few years ago, and debts have shrunk.

There is no first or second charge, but there is a weaker form of security called an agreed notice.

The company says the expansion will pay for new trainers to enable it to fulfill new contracts already agreed.

The auction is due to finish on 28 December 2014.

Liberta Restaurant Ltd, C grade

The average interest for this Italian restaurant is also currently above 19%.

£26,000 of this £35,000 loan has been funded.

This is another loan for 60 months. For the first time, rebuildingsociety has granted the loan despite the accounts showing three years without profits.

It is a secured loan of £35,000 with a second charge. The total debt on the property, valued at £200,000, will be £185,000.

There are also personal guarantees from the directors against assets valued at over £70,000, although this kind of security is less certain.

The purpose of the loan is unusual in that the restaurant wants to buy its own premises rather than continue to lease them.

The auction is due to finish on 28 December 2014.

 

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