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But we do have about 30% of our profile which have real-estate

But <a href="https://installmentloansgroup.com/installment-loans-ut/">https://installmentloansgroup.com/installment-loans-ut/</a> we do have about 30% of our profile which have real-estate

But we do have about 30% of y our profile which has estate that is real

Brendan: But we do have about 30% of y our profile which includes real-estate as security even though the loans by themselves may be similar to a busine loan, but where we are able to really affix to property as security therefore we aren’t entirely unsecured. I think can eentially be considered secured we are about 48% secured and maybe 52% unsecured consumer and small busine if you were to add receivables and real estate, both of which.

Peter: Interesting, interesting. Therefore then how can the lender is chosen by you to do business with? After all, are you searching for…obviously you’ve got a return target you’re signing up a new deal that you want to hit, but is there anything else that you’re looking for when?

Brendan: positively, so that the very first thing we place such a premium on so we want to know how the lender is planning to scale and where it will be getting its customers from in such a way so that they’re not competing against dozens of other lenders or even one or two other lenders that we want to understand is the story and that’s because unique deal flow is something. Therefore we want those unique relationships where they could find those borrowers then after they have that and now we know the way they’ll scale that then we’re going to dig within their information. You clearly understand Bryce extremely well, Bryce or Dr.Mason, another pioneer in this industry that arrived aboard over an ago now and he’s our chief investment officer so bryce then digs into data year.

just What we’re searching for is two things; the very first thing of course we’re to locate could be the performance from the security together with 2nd thing that we’re looking are at the smallest amount of that the model that they’re making use of, the underwriting model that they’re utilizing to get the loans could be the supply of their exemplary comes back. To help you imagine a loan provider this is certainly delivering exemplary comes back, but actually does not have an underwriting model that is good.

Peter: Right.

Brendan: so we need great data showing good performance and we need to be able to connect it to an underwriting model that we believe works because it’s actually smart humans that are making the difference there and of course that won’t scale. And because we’ve seen therefore a number of these underwriting models and Bryce himself has really built some, we’re excellent judges regarding the relationship between good performance and also the underwriting model.

Then after that there‘s a lengthy evaluating proce because we’re audited and because we hold ourselves to a really high standard we do lots of exactly what are called procedures testing therefore we’re trying to find the control points in the lender…where their computer software and where in actuality the people intersect to do critical such things as ‘okay’ a loan, cable cash, just how cash is gotten and where all that money goes generally there is an entire group of tests that individuals do in order to be sure that their busine is wholly buttoned down and we could even have suggestions for them, we usually do. Once they’re throughout that there’s things like criminal record checks that happen after which we could arrive at a phrase sheet that is a fairly long legal document and then arrive at an agreement that is definitive. It’s maybe maybe not a really long proce if we’re really interested in the financial institution, but it is a really in level proce.

Peter: Yeah, it really seems like it. I do want to explore the SEC together with filing you did…i understand we had written you give us an update on that and what went on about it on Lend Academy back in January, can?

Brendan: positively, so that the method this works is you file what’s called an N-2 then you get comments back from the SEC and the comments reflected an interest that the SEC had in really very, very current valuation and if you look at the succe of the two firms that have launched in this space, they’ve both been able to do daily valuation if you’re going to create a closed end fund so we did that in December and. It is really difficult to day-to-day value a loan facility that includes a borrowing base. Banking institutions don’t do this every day, they would typically take action on a month-to-month foundation and thus because we look much more just like a bank than we do just like a customer of market loans, the final outcome that people found is we simply weren’t likely to be capable of getting to day-to-day valuation and therefore we might be well offered by pulling the N-2 that will be an easy move to make.

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