Ablrate, a peer-to-peer ABL lender, launched a new IFISA-eligible loan product at 8% with no minimum term and no lock in.
The loans utilize Ablrate’s secondary market technology by auto matching those wishing to sell and those wishing to buy into portfolio loans, potentially providing excellent returns on IFISA funds.
Ablrate provided its first such single company portfolio loan to Merchant Transaction Finance (MTF), a company that helps businesses fulfill orders for its products on a local and international basis.
MTF, with its partner Ridge Road Partners, approached Ablrate to assist with plans to expand. Ablrate provided a facility of up to £5 million ($6.9257 million) to be rolled out with up to £500,000 ($692,570) each month. The funds will be allocated to a special purpose company that funds each underlying transaction MTF does, delivering good diversification for Ablrate lenders within a single loan.
“Our lenders have previously successfully loaned £600,000 ($831,084) to MTF and those loans are performing as expected, so we know the company, its processes and its team well,” said David Bradley-Ward, CEO of Ablrate. “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”.
