Updated May 2019
How I Make 12%+ Annual Returns Lending On Secured Assets Like Private Jets & Power Generating Stations!
My Lending Experiences & Actual Investment Returns Published Monthly Below.
What is Ablrate?
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 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 has been good so far, although I’ve only been investing with them for a few months and I started out small.
Although they are a viable investment option for very good returns. Lending out larger amounts of capital will take a reasonable knowledge of asset value and understanding of corporate accounts and credit risks to ensure the safety of your capital and your comfort with the investment.
As I get more comfortable with Ablrate, I will be lending out more capital with them.
As mentioned earlier, their rates are some of the best in the business for secured loans so it would be hard to let the opportunity pass.
Read on to learn about my personal lending experiences with Ablrate, as well as my investment strategy and long term view of the company.
The Obvious Investor – Easy-Info Table – Ablrate Review
Overall Rating*: (3.2 / 5) Who can invest: Estimated Return: 6% to 15% My Actual Return
12.00% My Calculated XIRR: 15.95% Risk Rating*: 7/10 -Medium - High Early Exit: Yes.
Min. Investment: £1 for account.
Min Amt Per Loans Varies.
Deposit Funds: By Bank Transfer or Debit Card.
Usually same day.
Auto-Invest: No 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 Website: www.ablrate.com Email: email@example.com Telephone: 01491 410 400 (UK) IFISA/IRA: Yes. ISA Cashback**: Yes! Enter Code TOV2019JJ
for 0.5% cashback on your first investmets!
How to Sign Up**: Sign Up Here!
Ablrate – Overview
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.
Their last filed financial accounts are publicly available from Companies House.
Ablrate (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.
Signup Process – Ablrate Review
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.
Deposits & Withdrawals
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.
Withdrawals are directly to a UK bank and can typically take 1 – 2 business days.
Time to Become Invested – Ablrate Review
Ablrate 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 Ablerate Portfolio Loan.
Portfolio Loans are a new type of loan offered by Ablrate. The description of how these loans work are here on Ablrate’s website and an overview is below.
Who are we lending to?
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.
Loan Security – Ablrate Review
Ablrate provide very good and detailed information about their loans, 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 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 broker 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).
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 loans amortize from the detail on the loans listing screen where it is clearly marked.
Selling Loans and Withdrawing Capital – Ablrate Review
Selling loans is done through their Secondary Market. Ablrate have 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 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.
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.
There is no provision fund with Ablrate.
You are relying on your ability to seek out safe profitable loans, and the asset security on the loan it’self in case of default.
Retirement Account – Ablrate Review
The Ablrate ISA was launched in August 2017 for UK residents enabling tax free investments for Peer to Peer lenders.
Website – 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.
Summary – Ablrate Review
Overall I think Ablrate are a good option for diversification with high rates achievable if you take the time to do due diligence on each loan.
All of Albrate’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.
I do intend to add more capital to my Ablrate account to see how the lending goes as I learn more about them. I will increase the amounts as and when I become more comfortable.
Thumbs Up Points for Ablrate
Good Returns – returns of 6% – 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 – Albrate have a good history of recovering on defaults, which is good to know when things go bad.
Retirement Account – 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.
Low New Loan Flow – Loan flow is very sporadic. I’ve only been lending with them for a few months but loans have averaged only one new loan 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.
Manual Investing Only – time consuming and requires due diligence to pick out the best loans.
Risk Factor – 7/10 – Medium – High
Is Ablrate Safe? I consider Ablrate to be in the middle to high area of the risk scale.
Even taking in to consideration that loans are asset secured, they are still a small company with minimal trading history. Plus such a small loan-book means it’s harder to diversify to minimize risk.
Who Can Invest with Ablrate
UK residents with a U.K. bank account can invest with Ablrate. Contact Ablrate for further information.
Offers & Signup Links**
Exclusive Cashback Offer to Readers of The Obvious Investor – Enter the promo code TOV2019JJ when you sign-up with Ablrate and receive 0.5% cashback on your first investments.
Similar Lenders to Ablrate
Ready to Get Started Lending? Disclaimers: * My opinions on ratings and risk rating factors refer to my personal experiences with a company or account. Including factual data such as interest rates, loan types, security, platform history, default numbers etc. ** I’m not paid by any company to review them, nor am I employed by any of the companies I review. In most cases, I am actively investing my own personal capital through these companies which you can see with full transparency on my Lending Returns page. Some of the sign-up links on this website are referral links. When you click on these links, I may receive a small commission, at absolutely no cost to you. Your support helps me to run this website and continue to offer new reviews and portfolio updates. Please read my full website Disclaimer before making investment decisions.
New to Peer to Peer Lending?
Ready to Get Started Lending?
* My opinions on ratings and risk rating factors refer to my personal experiences with a company or account. Including factual data such as interest rates, loan types, security, platform history, default numbers etc.
** I’m not paid by any company to review them, nor am I employed by any of the companies I review. In most cases, I am actively investing my own personal capital through these companies which you can see with full transparency on my Lending Returns page. Some of the sign-up links on this website are referral links. When you click on these links, I may receive a small commission, at absolutely no cost to you. Your support helps me to run this website and continue to offer new reviews and portfolio updates.
Please read my full website Disclaimer before making investment decisions.