WE ARE BACK, RECHARGED AND READY TO LEND
We finished off December with one of our largest months of lending to date. Thank you to our brokers for an amazing 2019, it’s only possible with your support.
Ok it’s time to get back to my pet peeve. Slimy private lenders.
Another deal we have just completed annoyed me again. We recently refinanced a borrower out from a situation which highlights a very important truism in lending. That is the test for any lender is not at the beginning of the loan but at the end or when changes are needed or a default occurs.
This borrower took one of the shiny new loans I see in the market. The rate was 7% prepaid for 12 months.
What could go wrong?
Well a default occurred after 3 months, the lender immediately appointed a receiver, charged default interest on top of the entire 12 month interest and with other fees and charges ended up with a 45% return.
The default was of no consequence to the asset and could easily have been dealt with by a waiver. It took us 3 weeks to get a payout from the lender.
So many lessons here! Please brokers, be vigilant on navigating your borrowers to reputable lenders as the implications can be disastrous.
Keen to know more, check out the following links:
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#removethescumfromprivatelending #securedlending
