Last Updated on 21st November 2020 by Mark
12%+ Annual Returns Obtainable By Lending On Secured Assets Like Private Jets & Power Generating Stations! – Ablrate Peer to Peer Lender (P2P) Review
My Lending Experiences & Actual Investment Returns Published Monthly Below.
Who or What is Ablrate P2P?
Providing loans mostly to businesses on a selection of interesting assets from private jets, luxury yachts and power generating stations, to property development and bridging loans.
Offering annual returns of up to 15% on secured loans, Ablrate have a unique spin on Peer to Peer lending and offer some of the best rates in the business for secured lending.
Ablrate’s loan flow is unfortunately quite slow, so it’s hard to diversify into a lot of different loans. This means you will need to do due diligence on each loan you decide to invest in to ensure you are comfortable with the asset value provided and the terms available for the loan.
That being said, Ablrate P2P have a very good reputation and history with the Peer to Peer lending community and their loans are known as some of the safer asset secured loans where borrowers are vetted very well by Ablrate with very in-depth due diligence.
Ablrate are also known for having very good default recovery success on the limited number of loans that have defaulted on their platform.
My Experience With Ablrate So Far……..
Ablrate still seem to be plodding on, although several of their loans have been “Paused” typically meaning they’re in default. Updates are still forthcoming on loans even though all are not 100% positive (how could they be in this economic situation). I sold most of my loans with higher LTV’s as I’m trying to reduce risk in my P2P lending. I currently have a few loans which are “Paused” and not repaying yet. Not many new loans from Ablrate recently so I have a feeling they are more focused on managing the clients they already have.
Here is a view of the Ablrate loans as they stand. The brown sections are “Paused” loans (click to enlarge images).
My Ablrate Strategy.
I’m drawing down my investment with Abrate now as it becomes available. Not in any major rush as I consider capital relatively safe there, but the loans they have tend to be on the medium to high risk scale & they have about 20% of their loans late or in default so reducing exposure further is a sensible move.
The Obvious Investor – Easy-Info Table© – Ablrate Review
Overall Rating*: (3.6 / 5)
Who can invest: Loan Currencies: £
Estimated Return: 6% to 15%
My Actual Return
My Calculated XIRR: 13.11%
Risk Rating*: 5/10 -Medium
Early Exit: Yes.
Min. Investment: £1 for account.
Min Amt Per Loans Varies.
Deposit Funds: By Bank Transfer or Debit Card.
Usually same day.
Manual Invest: Yes
Lending To: Agreements directly with borrowers
Loan Types: Various Asset Secured Loans.
Corporate Aircraft, Generating Stations,
Property Development etc.
Default Rates: Not Published.
Loans Amortize: Some do but not all.
Some interest only.
Loan Security: Yes, most loans asset secured.
Provision Fund: No
Time to Invest: Manual
Time to Mange: Manual
Lender Fees: No.
Payments Received: Interest or Interest and Capital Received Monthly.
Depending on loan type.
Amount Lent: Not Published.
Number of Investors: Not Published.
Loan/Dflt Stats: Not Published.
Regulated: Yes: FCA
Location: Henley-on-Thames, UK
Launched: August 2014
Email: [email protected]
Telephone: 01491 410 400 (UK)
IFISA/IRA: Yes. ISA
Cashback**: Yes! £50 cashback for £1,000 investment
Learn More >>
How to Sign Up**: Sign Up Here!
Ablrate Review – Overview
Abltate Plaform History
Ablrate’s Peer to Peer business was incorporated in February 2014 and their platform was launched in July 2014 in Henley-on-Thames, UK.
Ablrate do not publish their lending figures as far as amounts lent out and default statistics. So I am unable to publish that information for this lender, however as far as I understand, default rates are very low. Default recovery has been very well handled.
Their last filed financial accounts are publicly available from Companies House.
Is Ablrate Regulated?
Ablrate P2P (AKA Aviation and Tech Capital Ltd.) are regulated by the UK’s Financial Conduct Authority (FCA) with full permissions under FCA number 724444
They gained FCA permissions in March, 2017.
It’s important to note that the FCA is not the same as the FSCS (Financial Services Compensation Scheme), so capital is not protected as it would be in a bank.
How to Signup with Ablrate & Open An Account.
Opening an account with Ablrate is fairly easy. Just the usual ID and anti-money laundering checks.
If they can verify you though one of the UK’s credit agencies, you may be approved immediately. If not, you may need to send them a copy of your passport or driving license, and a utility bill or bank statement.
Any resident of the UK who is 18 years old or over can signup with Ablrate if they can pass the ID checks & anti-money laundering checks.
A UK bank account is also required to signup.
How Are Deposits & Withdrawals Made? – Ablrate Review
Deposits are made by bank transfer from a UK bank or a debit card drawn on a UK bank.
Typically card deposits are in your account immediately and bank transfers show up in your account the same or next working day depending on the time you send them.
Withdrawals are directly to a UK bank and can typically take 1 – 2 business days.
How Long Does It Take To Distribute Capital? – Ablrate Review
Ablrate P2P loans are all self-select manual investments. No auto-invest accounts. So loans must be selected and invested into individually.
When you choose “Available Loans” from the main screen menu, you can see loans that are still available for investment on the primary market.
As you can see in the screenshot above, there are currently only two loans available for investment. One of the loans is a standard Self Select Loan, and the other is an Ablrate Portfolio Loan.
Portfolio Loans are a new type of loan offered by Ablrate P2P. The description of how these loans work are here on Ablrate’s website and an overview is below.
Who Are We Lending To With Ablrate?
Ablrate is a true Peer to Peer platform.
Lenders are lending directly to borrowers who are typically small to medium size British businesses.
Loan agreements are directly between the lender and the borrower. Ablrate just acts as a middle man, managing loans, payments and debt collection etc.
What Loan Security Do Abrate Loans Offer? – Ablrate Review
Ablrate provide very good and detailed information about their loans & loan security. Including detailed explanations of the deal and descriptions of assets, including LTV’s and all documents associated with the valuation.
Also available are borrower credit documents and all other documentation relating to a specific asset such as ecological reports and flood assessments depending upon the asset in question.
Here is a list of a few of my current Ablrate P2P loans:
You can see the top-level information on each loan. And when you drill down, you can see the detailed information is still available, and it is updated regularly.
I know this is probably one screenshot too many for a review, but I wanted to show the different loans available, and who doesn’t want to brag that they own (part of) a private jet. Even if it is being broken up for parts 🙂
You’ll notice below the red number “1” indicating a new document is available for this loan.
Again if you switch to the “Documents” tab, you’ll see that a new document is available for download (in this case the document was added in 2018 but it was after the loan was established).
What Annual Returns Can We Expect With Ablrate?
If we choose the loans carefully, there is good reason to conservatively expect Ablrate annual returns of between 10% & 15%. My returns over the past 18 months or so have averaged around 14%.
When Do Ablrate Loans Start To Pay Interest?
Many (but not all) Ablrate loans pay what they call “Instant Returns” which means they start paying interest as soon as you invest, before the loan is even drawn down by the borrower. Others loans start to pay interest after the loan is drawn down.
You can always see on the loan thumbnail and loan details if this loans is an “Instant Returns” loan.
Do Ablrate Loans Amortize?
Many of Ablrate’s loans amortize, meaning you receive capital and interest payments every month. Many loans are interest only though, mostly the shorter term bridging loans and capital equipment loans. The interest only loans tend to have higher return rates associated with them as they are typically classed as higher risk.
When loans amortize, it reduces loan risk compared to a non-amortizing loan, in which nothing is received until the end of the loan period, or only interest is received monthly and then the capital repaid at the end of the loan period.
Amortization is the paying off of debt with a fixed repayment schedule in regular installments over time. It is an accounting technique used to lower the cost value of a finite life or intangible asset incrementally through scheduled charges to income.
It’s easy to see if Ablrate’s P2P loans amortize from the detail on the loans listing screen where it is clearly marked.
How To Sell Loans & Withdraw Capital Early From Ablrate.
Selling loans is done through the Ablrate Secondary Market. Ablrate has a very active secondary market where you can buy and sell loans.
There is even the ability to bid on loans at a price you want to pay. Or offer loans you want to sell at a price you’re comfortable with.
The Ablrate P2P secondary market is a little complicated. However once you get the hang of using it, it’s not so bad.
It is actually very versatile once you understand it. Enabling you to name the price you want to pay for a loan through bidding.
I actually bought most of my loans on the secondary market.
I placed low-ball bids on some loans which got accepted after a couple of weeks. This makes the actual return rate higher than it would have been purchasing the loans when they were initially offered. You can see on the bids and offers screen what rates are equivalent to different sales and purchase prices.
How Easy Is It To Diversify With Ablrate Loans? – Ablrate Review
Because Ablrate loans are all self-select loans, diversification is a manual process.
As mentioned previously, although Ablrate loans are very well secured, their loan flow is not huge. So if you have a lot of capital to invest, you’re going to end up with more than you would probably like to have in each loan.
So best to make sure you do due diligence to a level your comfortable with before investing any of your hard-earned capital.
Does Ablrate Have A Provision Fund Or Buyback Guarantee?
There is no provision fund or buyback guarantee with Ablrate.
You are relying on the Ablrate lending team’s due-diligence, your ability to seek out safe profitable loans, and the asset security on the loan it’self in case of default.
Is There An Ablrate Tax Free ISA / IFISA Account?
The Ablrate Innovative Finance ISA ( Ablrate IFISA) was launched in August 2017 for UK residents enabling tax free investments for Peer to Peer lenders.
What Is The Ablrate Website Like? – Ablrate Review
Ablrate’s website is relativity easy to use. Everything makes sense and is easy to access.
All of the account information is right there in front of you on the main account screen all laid out in a manner which is self explanatory.
My Ablrate Investment & Lending Strategy
The investment strategy I use with Ablrate is based mostly on the trust I have of the team and platform. When initially investing in the primary and secondary market, I took one loan from each borrower (many borrowers on the Ablrate platform have multiple loans associated with them). The only real due diligence I did was to look at historical payments to ensure they were all on-time (on the secondary market). The asset security, LTV ratios and what the asset valuations looked like (just really a Google & guess as I’m no professional in that area).
I also Google’d the borrowers company to see what else I could find on them, as well as the locations of any assets to see if I could identify them on Google earth (just inquisitive). I checked with Companies House to make sure all filings had been done in a timely manner & to see the latest company accounts. Then I put around £500 into each loan (one loan from each borrower as I mentioned previously). I could have diversified more by putting a smaller amount into multiple loans from each borrower.
I figure if the loan I’m in goes bad, the lender will likely cover any losses providing they are still in business. If not, then I’m guessing being in a lot of loans would help to diversify, but I just didn’t have the time to check out every loan. There are a lot of them. You can see the list of my current loans on the screenshot earlier in this Ablrate review.
Summary – Ablrate Review
Overall I think Ablrate’s loans are a good option for diversification with high rates achievable if you take the time to do due diligence on each loan & get to know & trust in the Ablrate team.
All of Ablrate’s loans are secured by assets typically with good LTV’s (Loan to Value ratios). So even if you were to make a mistake on a loan, you would likely still get your capital back. It just might take a while if it has to go through a long legal situation. Ablrate have an excellent history of low defaults, but more importantly of recovering capital promptly when things go bad.
There are not too many high-return lenders out there who are genuinely focused on investor capital preservation and ensuring the best returns possible for their lenders. I believe Ablrate are one of the better platforms with these qualities and I intend to slowly increase my investment as new loans come up moving forward.
Thumbs Up Points for Ablrate
Great Returns – returns of 12% – 15% on secured assets with good LTV’s.
Interesting Diverse Loans – loaning on items like private jets and boats is out of the norm for Peer to Peer lending, so it enables you to diversify away from the typical bricks & mortar assets.
Low minimum investment – There is no minimum to open an account. Minimum investment in loans is on a case-by-case basis but is typically small.
Good Default Recovery – Ablrate Peer to Peer have a good history of recovering on defaults, which is good to know when things go bad.
Tax Free Innovative Finance ISA (IFISA) – the Ablrate ISA is available for tax free investing.
Financial Conduct Authority – (FCA) Regulated.
Thumbs Down Points for Ablrate
Smaller Company – with shorter track record, launched in 2014 Ablrate are still proving themselves. Surviving for 6 years in the Peer to Peer sector is no small feat though.
Low New Loan Flow – Loan flow is very sporadic. I’ve only been lending with them for a couple of years now but loans have averaged only one to two new loans per month so far.
Smaller Loan Book – This is really just a function of the last bullet point, not many loans with too many investors trying to get them.
Secondary Market Complex – can take a while to get familiar with using the secondary market. Although once you do, it’s very flexible and enables you to increase your return rates if you’re patient enough to bid on loans.
Manual Investing Only – time consuming and requires due diligence to pick out the best loans.
Ablrate P2P Overall Safety & Risk Factor – 5/10 – Medium
Is Ablrate Safe? I consider Ablrate’s P2P platform to be in the middle area of the risk scale.
Even taking in to consideration that loans are asset secured, they are still a smaller company. Plus with a smaller loan-book, it’s harder to diversify to minimize risk. There is a very active secondary market to help with diversifying capital though, as well as being able to increase returns by bidding on loans.
Who Can Invest with Ablrate?
UK residents with a U.K. bank account can invest with Ablrate. Contact Ablrate for further information.
Ablrate Bonus & Signup Links**
Use the link below when you sign-up with Ablrate and receive £50 cashback bonus on your first investment of £1000 or more.Click Here to Visit The Ablrate Website
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Who Are the Best Peer to Peer Lenders In An Economic Downturn? Would You Like A Copy of the Spreadsheet I Use for Tracking P2P Lenders? Disclaimers: * My opinions, reviews, star ratings and risk ratings are based on my personal investing experience with the company being reviewed. These ratings are personal opinions and are subjective. You should do your own research before investing any capital and not base investments solely on the opinions published on this site. ** Some of the links on this website are affiliate referral links. When you click on these links, I can sometimes receive a commission, at absolutely no cost to you. This helps me to continue to offer new reviews and monthly portfolio updates here on my website. I don’t receive commissions from all lenders and it has no effect on my ongoing opinions on lenders. Income on my investments and capital preservation are my main motivations. Platforms reviewed on this website I am currently investing with, or I have invested with in the past. You can see with full transparency on my Lending Returns page which lenders I am invested with (or have previously been invested with) at any point in time. I am not paid a fee by any of the companies to write reviews, so the reviews are unbiased and purely based on my own personal experiences. Please read my full website Disclaimer before making investment decisions.
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* My opinions, reviews, star ratings and risk ratings are based on my personal investing experience with the company being reviewed. These ratings are personal opinions and are subjective. You should do your own research before investing any capital and not base investments solely on the opinions published on this site.
** Some of the links on this website are affiliate referral links. When you click on these links, I can sometimes receive a commission, at absolutely no cost to you. This helps me to continue to offer new reviews and monthly portfolio updates here on my website. I don’t receive commissions from all lenders and it has no effect on my ongoing opinions on lenders. Income on my investments and capital preservation are my main motivations.
Platforms reviewed on this website I am currently investing with, or I have invested with in the past. You can see with full transparency on my Lending Returns page which lenders I am invested with (or have previously been invested with) at any point in time. I am not paid a fee by any of the companies to write reviews, so the reviews are unbiased and purely based on my own personal experiences.
Please read my full website Disclaimer before making investment decisions.