Ablrate: Asset Finance Through Peer Lending

Ablrate

Ablrate's specialist business technology now enables you to access high yield, asset-backed investment opportunities, using its experience and relationships in the property, industrial and aircraft industries

Ablrate is a peer lending platform that focuses on the asset backed business loan sector. Ablrate has designed its system to bring lenders quality, secured lending opportunities from professional businesses seeking financing for income generating transactions. Ablrate brings loan requests in capital equipment and property, and it's the world's first platform to offer investments in aircraft transactions.

Lending On Ablrate

Ablrate, pronounced 'Able - Rate' was named as such because it specialises in Asset Backed Lending. Lending Members are brought together with businesses seeking loans for transactions where there is a tangible asset providing security for the loan.

The platform was created by industry veterans in aircraft, marine, and capital equipment leasing. Launched in 2014 Ablrate originated and closed £2 million of loans within six months and continues to grow by attracting capital from everyday investors to institutions.


I’ve spent many years working in investment banks and decided that it was time to take control of things myself and try to beat the returns that my fund manager had been getting.

Andy Sweeney - Head of Fixed Interest Products - Ablrate


When it comes to investing I always remember the 3 Ps - People, Product and Potential! In the case of Ablrate, it is clear that experienced professionals with a proven success story are running a unique business model with enormous potential.

Wolfgang Hienstorfer - Ablrate Lending Member since October 2014


How It Works

If you're someone who likes to actively monitor and make investment decisions on your SIPP or SSAS, you'll presented with loan opportunities in which to invest and you'll be provided with all the information needed to make an informed decision. There are no complex auctions to deal with just a fixed rate offered by borrowers.

For those who would like a 'fire and forget' option on the platform, you can simply input your investing goals and Ablrate's system will invest on your behalf to your parameters, avoiding conflicts with SIPP or SSAS rules. This tool can be switched on an off at your preference, returning your account to manually managed.

Ablrate's loan exchange allows you to put your loan up for sale, peruse and purchase other loans, or even make offers to buy loans you like the look of. The Ablrate loan exchange sets the standard for buying and selling loan parts and provides a flexible way of managing your Ablrate loans.

Information On Loans

Ablrate aims to make the purchasing of loans as transparent as possible without compromising any commercially sensitive information of the borrower. Security details and professional asset valuations are viewable along with details of the borrower and any lessee to download and view.

Some loans may also carry details of 'Instant Returns' where you start accruing interest from the moment you bid which is credited to your account when the borrower draws down on the loan, making sure you do not lose returns on your money by being an early bidder.

How Ablrate Ensures Quality Of The Loans

Ablrate is a platform that allows Lending Members to evaluate transactions from borrowers. It acts as an introductory platform and does not give advice on transactions. However, it does vet those that are allowed to post on Ablrate and it has 'Sponsors' who evaluate transactions on its behalf.

By doing this, Ablrate ensures the quality of the borrowers coming onto the platform, and the transactions placed on Ablrate are of a sufficient standard. This gives Lending Members opportunities to loan into lucrative, but well thought out and structured transactions from well-regarded businesses.

Key Benefits

Professional Due Diligence

Each transaction is subject to legal due diligence by the Sponsor and Ablrate checks to make sure the loan is of the standard required for its lenders.

Security

Each loan has security in place over the asset, income streams and in some cases, personal and corporate guarantees. In many cases, you'll be able to choose where on the ladder of seniority you come, from a first charge to a secondary charge (with the variations in return that this brings).

High Quality Business Loans

Aircraft loans are underpinned by lessees who are big businesses or government credit, not start-ups or businesses with no track record. Other asset backed loans will have a similar profile.  Some may be to newer business but these will have the necessary backing of a parent company or equivalent guarantee.

Fee Free

Ablrate makes its money from the borrower and does not charge the lender any fees, other than a small transaction fee when selling loans to other lenders.

Target Returns

Interest of 6% - 12%+ on loans.

Please note that investing on Ablrate is not for everyone. Although loans are secured with assets, there is still a risk to your capital and future interest payments. The primary risk being that if a borrower defaults, and Ablrate is unable to liquidate the asset for the full amount you invested, you could lose some, or all of your capital and future interest payments. The level of due diligence performed does not mitigate this risk of loss or provide guarantees of success of the loan. You should consider all the risks associated with lending on Ablrate or any other market lending platform before you invest.

Visit the Ablrate website for full details.

SIPP And SSAS Lending On Ablrate

To discover whether investing your SIPP or SSAS money in crowdfunding and peer-to-peer lending is appropriate for your circumstances, please complete all the fields of the form below.

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Crowdfunding And Peer-To-Peer Risk Warning

When a platform has been assessed and approved by a SIPP or SSAS operator, this does not imply that any loan or investment opportunity is endorsed in any way. A SIPP or SSAS operator's due diligence review is limited to ensuring the processes and procedures of the platform are in line with both FCA and HMRC principles.  It's entirely your responsibility for carrying out your own due diligence on any loan or investment opportunity before agreeing to lend or invest your pension money on a platform. As a SIPP or SSAS operator will continually review platforms from a regulatory perspective, it's possible for a platform to become 'unapproved' if something changes.

With peer-to-peer lending, your capital is at risk if you lend to individuals and businesses.  You may lose some or all of the capital lent if the borrower defaults and is unable to meet its liabilities. Historic loan default rates are not necessarily indicative of future default rates.  In addition, lending is an illiquid investment, which means you may not be able to access the capital you lend for the duration of the loan period, even if the platform offers a secondary market.  Investing in any business involves risks, including illiquidity, lack of dividends, loss of investment and dilution, and it should be done only as part of a diversified portfolio. Crowdfunding is generally targeted at investors who are sufficiently sophisticated to understand the risks and make their own investment decisions, based on their knowledge, experience and financial capacity. Neither crowdfunding nor peer-to-peer lending is covered by the Financial Services Compensation Scheme. The tax treatment of your investment is dependent on your individual circumstances and may be subject to change in the future. If you are unsure about the suitability of crowdfunding investment or peer-to-peer lending, you should consult a suitably qualified independent financial adviser.

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As SIPPclub neither advises on, nor arranges, nor recommends specific investments or strategies, we're unable to say whether a SIPP or SSAS or any investment within it is right for you. Ultimately, it’s your money and your decision, and you should only proceed once you're satisfied you've undertaken sufficient due diligence. If you need advice, you should speak to your trusted adviser, or you could find a local adviser from Unbiased.co.uk.  Alternatively, we'd be pleased to introduce to a suitably qualified independent financial adviser.

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