ABLRATE – What’s in a Name? Yet another Asset-based P2P Loan Platform

This is how ABLRATE describe themselves:

Ablrate is a peer lending platform that provides asset finance to a diverse range of businesses. Our platform was initially launched to allow our Lending Members access to the lucrative aircraft leasing space. The sector is highly regulated, has bank finance involved and can provide lenders with excellent returns and security. 

The platform was expanded to give Lending Members access to asset finance deals in capital equipment, property and any other transactions where our members have good security and good returns.  Ablrate was named as the 'abl' stands for 'Asset Backed Lending' which is at the core of our platform and will remain so.

Interface

Ablrate has pleasing platform user interface and offers very rapid crediting of bank transfer deposits (ie a few minutes).  Interest rates currently vary from 10-14%.  There were no loans available when I joined so I bought £300 worth of a bottling plant loan on the secondary market just to try the platform out.

Aircraft Leasing

As well as aircraft leasing they also do manufacturing plants and marine containers.  I’ve recently added a £300 loan against marine containers (14%) with a term of around 6 months.
The secondary market allows you to buy and sell loans at a premium of discount, in a similar way to Funding Circle.  Other asset based platforms that do have a secondary market, currently only allow you to buy or sell at value.

Any Good?

My main problem with Ablrate (apart from the odd name), so far, has been a lack of new loans. However, I feel Ablrate has a lot going for it and offers good support via the P2P Independent Forum and has an interesting portfolio of loans.  The company appears to have significant knowledge of the aviation leasing market and that differentiates them from the other asset-based loan companies who follow the ‘pawnbroker’ or ‘bricks and land’ models.

Summary:

• Interest rates: 10-14%
• Secondary market (with premiums and discounts)
• Length of loans 6 months - 5 years
• Quick deposits
• Asset-based

Ablerate is a P2PL platform to watch.  But, as with its rivals such as Saving Stream, Money Thing and Funding Secure, it is too early to make a clear judgement.  Only when these platforms have been tested with a few defaults will we be able to make a more considered assessment.