But we do have about 30% of y our profile that includes property

But we do have about 30% of our profile that includes estate that is real

Brendan: But we do have about 30% of y our profile which has estate that is real security even though loans on their own could be similar to a busine loan, but where we are able to really put on property as security therefore we aren’t totally unsecured. If perhaps you were to include receivables and property, both of that I think can eentially be viewed guaranteed we have been about 48% guaranteed and possibly 52% unsecured customer and tiny busine.

Peter: Interesting, interesting. Therefore then just how do you decide on the lending company to utilize? I am talking about, looking for 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: definitely, so that the very first thing that individuals 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. They can find those borrowers and then once they have that and we understand how they’ll scale that then we’re going to dig into their data so we want those unique relationships where. You clearly understand Bryce extremely well, Bryce or Dr.Mason, another pioneer in this industry that arrived aboard over a year ago now and he’s our main investment officer therefore bryce then digs into information.

exactly just What we’re hunting for is two things; first thing of course we’re trying to find could be the performance from the security and also the 2nd thing that we’re shopping for has reached the smallest amount of that the model that they’re utilizing, the underwriting model that they’re utilizing to get the loans may be the supply of their exceptional comes back. To help you imagine a loan provider that is delivering exceptional 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 exemplary judges for the relationship between good performance while the underwriting model.

Then after that there‘s a lengthy screening 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 during the lender…where their computer software and in which the people intersect to do critical such things as ‘okay’ a loan, cable cash, just how cash is gotten and where all of that money goes generally there is an entire pair of tests that people do in order to be sure that their busine is totally buttoned down and we also could even have strategies for them, we frequently do. As soon as they’re throughout that there’s things like criminal background checks that happen after which we are able to arrive at a term sheet which will be a fairly long appropriate document then reach an agreement that is definitive. It’s maybe maybe not an especially lengthy proce if we’re really interested in the lending company, however it is a really in level proce.

Peter: Yeah, it surely appears like it. I would like to speak about the SEC while the filing you did…i understand we published about this on Lend Academy back January, are you able to provide us with an improvement on that and what proceeded?

Brendan: definitely, therefore the way 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 https://onedayloan.net/ 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 value that is daily loan center which has had a borrowing base. Banking institutions don’t do this every day, they might typically do so on a month-to-month foundation so because we look much more just like a bank than we do just like a customer of marketplace loans, the final outcome that individuals stumbled on is the fact that we simply weren’t going to be in a position to get to day-to-day valuation and therefore we might be well offered by pulling the N-2 that is an easy thing to do.