The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
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I have worked for a number of great CEOs and I very much count Gary as one of these. He is crystal clear in strategy, direction and communication. He is effective in his leadership and decisions. He has mastered balancing time and using it with precision. Yet he rounds this all off with care and attention to detail, such as knowing everybody's name and writing personal notes in recognition of achievement. A great leader and mentor.
priv
Good morning
You mention that Gary "has mastered balancing time and using it with precision".
Just for a bit of light heartedness.
When would you speculate he will release the Re Lending RNS (Given your experience with CEO's)
Do you think he is aware of how perfect all the technicals appear to be lining up?
Now would be the perfect precision time for a great RNS?
We ain't starting lending imminently pal.
This will happen late November early December after the 1/2 year accounts are done. Christmas doesn't have anything to do with it. Furlough payments stop this month and by this time next month there will be plenty of folk wanting a dig out financially, which is when we'll be ready to step in. With the furlough scheme running out we will also get true visibility of the Covid impact so in summary 4-6 weeks before relending kicks off.
Franky - I think that you've made consistently really good calls on this share. Do you really think that the Christmas market won't figure in the equation? I know that we are all waiting to see where we are with the vReq next week, if it's good news and showing progress don't you think that the board would want to restart lending mid-November to catch this crucial period or are the half year results that instrumental?
Hey Franky
Furlough runs out but it is been replaced with another scheme which depends on which tier you are in
Not as good as original but still huge amount of support. Just enough to keep people in jobs but also just enough to mean they will get in debt and need loans next spring
FrankyS1971
Thank you for your candour.
Given the expected volumes of enquiries on the approach to Christmas I would imagine that these 3 weeks from December the 1st that you mention will be non stop enquiries and extremely chaotic.
Given the logistics of up to 405 staff at Amigo getting back to lending I would think they would need at least 2 weeks to warm up and get get back in the swing of things.
I personally, really feel that Gary should give the staff a few weeks to adjust.
I am sure they have been through enough this year like the rest of us without a "Baptism Of Fire" 3 weeks before Christmas!
Twisty
When I used to sell advertising, the busiest time for new credit was after Xmas when the credit card statements hit end of Jan
I wonder how long the loan assessment process is? eg from Application to Money hitting their bank.. It might be how long is a piece of string..!! Any views?
That's a fair point Seamus, I respect that. I would just say that this is not a usual year. Many of the people that I know in my sector have had next to no support and are on their knees somewhat. I think that the demand for credit leading up to Christmas could well be greater this year with credit cards already maxed out etc. Just my opinion tho.
Well they are hiring for a few extra folk and that can only be because they expect a bow-wave of demand created by Covid and Furlough Gabs mate!:-)...it may mean a few delicate conversations needed to gee up payments. I personally don't mind if relending takes a while as I'm sure the BOD will want good data to determine the impact on the current book of business from the tighter Covid restrictions and ending of furlough. This is another biggy to work through and they can't afford to throw caution to the wind and build up the next issue. Let's get ducks in a row unlike NSF who are desperate and need new money in fast to cover the holes in their finances.
Goaty! (eveyone get an 'y' ending on their handle today:-))>...I reckon the process is still rapid. 3-5 days.
TwistyMinkle
For what its worth
In my experience of Corporate Operations.
A Baptism Of Fire for 405 staff members is not a good idea.
A chaotic period on the 3 weeks before Christmas ought to be achieved with the employees in mind.
Christmas items are already appearing in the shops.
The momentum is already building...
Thanks and NP Franky :)
MriGoat - end-to-end process from application from application to money in guarantors account is 24-78 hours depending on how fast the guarantor fills out their end. Was an Amigo customer many years ago and now a holder here.
FrankyS1971
Absolutely.
Prudent lending is Paramount.
I could not agree more on moving forward with increased security.
I really hope they consider taking a 2nd guarantor to solve this issue...
Yes you would have to run 2 credit checks on the guarantors costing a few quid each but this solves many issues:
1. If the loanee defaults they have 2 people from separate addresses meeting with them to address financial concerns.
2. If the loanee absolutely can not pay due to a change in circumstances it will be agreed between those 3 parties.
3. Should the guarantor's be left with the debt they only have 50% each as a burden.
I think this one simple mechanism that has been used by property landlords with a lending system validated and stress tested .
I suspect any default outcome matrixes could prove that this simple extra layer could save the company Millions.
Ps. If Amigo Board is watching I would appreciate any recognition or PM for my ideas. You said you want to interact more! lol
Gabriel - I have discussed this 2nd guarantor point privately with a couple of people on here and we all agree that this is a splendid idea. I'm not sure that any of the Board look at LSE but it's well worth firing off an email.
Frank .... It is almost certain we will get news next week of whether we have managed to hit the FCA target of 8 weeks with new claims as the deadline i believe is 31st Oct ( happy to be corrected ) but as the 31st is a Saturday, that may come beginning of following week. I hope there is some negotiation with the FCA and FOS regards to new claims which appear to fraudulent and a satisfactory outcome can be reached to get us moving forward. On my personal opinion, some good news to move the SP back up a couple of pence would be welcome, a single figure SP makes people more nervous as has less room to manoeuvre if there is any bad news.
TwistyMinkle
Re: Optional 2nd Guarantor Concept
I would not be so forthright to contact them directly as I have no prior relationship with the board.
I do recall that others have been in email contact with them & quite happy if any of you could at least put forward the suggestion?
After all, our hard earned cash is involved and anything that can secure Prudent Lending will certainly secure our investment, guarantee over 400 people keep their jobs & so many more people have access to finance that otherwise might not be available to them.
I am not solely interested in personal gain, this has the potential to help everyone.
Twisty
I know there are many MANY industries that are struggling, but I'm afraid I doubt Amigo will offer loans to those on schemes
GJ did say something along the lines of lending but in a limited way. Gabriel will be able to fill this in
I personally think we will lend again to the other millions that are in more secure jobs like construction, plumbers, decorators, plasterers etc this will be enough to lift us nicely
Spring next year after Vaccine we should fly
seamus --- If there is a vaccine next spring, hopefully i will fly !!! ;-)
Guys FYI, i wrote to CFO yesterday for a friend who needs a loan desperately - Not had a reply as yet.
Truth be told I don't think a second guarantor would be safer for the company, I mean the problem is with affordability checks/claims. Also I think for many people who need a loan it's not easy to find even one guarantor not to mention two... I once took a guarantor loan with a guarantor whose credit history was way worse than mine. Didn't have any other options so entered my girlfriend just to try it. I can only assume no one was bothered to check. So personally I don't think additional guarantor is a good idea. You need to properly check if the person taking a loan can afford it (not saying Amigo hasn't been doing it). And need some flexibility (proper rules) on FCA side so people don't abuse the option to claim as now every Tom and Jack is claiming for whatever reason comes to their mind. Just IMO.
2nd Guarantor ?
Having enough problems with one, Might as well go down the crowd funding route. Or go whole hog and set up an options trading facility for each individual loan.
Tdaves
Hi.
I don't know if you have managed to see the recent interview with Gary Jennison.
Hey states for the record:
"We do absolutely everything properly, I am convinced that anybody who says we don't do proper affordability, Is saying that because they don't know what we do and how we do it"
https://www.youtube.com/watch?v=ANalZ4nEVjc&feature=emb_logo
The 2nd guarantor could be an option to vastly improve Prudent lending.
Although I appreciate your personal experience with a guarantor, however I suspect the vast majority of people will find it easier to find 2 guarantor's willing to mitigate their risk by 50%!
Morning all,just an idea what about a guarantor incentive scheme ? Just a thought?