..each transaction is covered by Trade Credit Insurance from a triple A grade insurer and protected by a well-established security process, so lenders get a very good risk adjusted return
(PRWEB UK) 8 February 2018
The first ‘Single Company Portfolio Loan’ is for Merchant Transaction Finance (‘MTF’) who have an innovative product that helps businesses fulfil orders for their products on a local and international basis. MTF have completed £22 million in 450 transactions.
David Bradley-Ward, CEO at p2p lender Ablrate, said: “Our lenders have previously successfully loaned £600,000 to MTF and those loans are performing as expected, so we know the company, its processes and its team well. What attracts us to MTF, and why lenders should take up this loan, is that each transaction is covered by Trade Credit Insurance from a triple A grade insurer and protected by a well-established security process, so lenders get a very good risk adjusted return”.
MTF is scaling its operations by partnering with Ridge Road Partners, an experienced and successful team with a track record of building financial services businesses. Ridge Road’s European trade finance business is investing significant equity and augmenting the current management team. This, along with investment from a large family office in Singapore, gives MTF stability and a clear path to increasing origination.
MTF and Ridge Road approached Ablrate to provide a facility of up to £5 million to assist with this expansion to be rolled out with up to £500,000 each month. The funds will be allocated to a special purpose company that funds each underlying transaction the company does, giving very good diversification for Ablrate lenders within a single loan.
Paul Tinkler, Executive Chairman at MTF said: “We are excited to be working with Ablrate again. MTF has had extremely good experiences with the Albrate platform and the team on previous deals; the new innovations made by Ablrate fit perfectly with MTF’s business model. We look forward to continuing the relationship with Ablrate.”
Alex Benger, Business Development Manager at Ablrate, has been working on the transaction and said “We developed the Portfolio Loans product for just this type of transaction. MTF can have a flexible borrowing facility while our lenders can enjoy 8% in an IFISA eligible product that allows lenders to start earning as soon as they allocate their funds, with no minimum term and no lock in”.
Ablrate’s Portfolio Loans utilize the company’s secondary market technology by auto matching those wishing to sell and those wishing to buy into portfolio loans which, the company believes, will make the loan popular with those seeking a very good return on their IFISA funds. Ablrate is planning to launch a range of Portfolio Loans in the coming months alongside their self-select product.
Bradley-Ward added “These new products are an excellent addition to our range that will give addition flexibility to lenders and we have around £10 million lined up so far. Specifically, the MTF Portfolio Loan will give lenders a great return with no minimum term or lock in and I think that is a great option for those seeking to maximise their returns and retain flexibility”.