Working Capital Loans
Unbolted finances the working capital requirements of dealers of luxury assets. Loans are secured against a revolving group of stock held in Unbolted's possession, with interest paid monthly on them. Besides the security of the assets, we also monitor the financial health of the business on an ongoing basis.
How do we manage risk on these loans?
The aggregate amount of loans made to a single borrower tends to be higher than the average loan on the platform - at between £50,000 to £350,000 per borrower.
Given the larger size and longer-term nature of these loans, we manage risks on these loans more conservatively: loans are fulfilled at a lower LTV; interest payment is collected monthly; and we monitor the financial health of the business on an ongoing basis - through bank statements, quarterly VAT returns and financial accounts.
Where exposure to a single borrower exceeds £150,000 we ensure that interest payment do not exceed 40% of gross profit earned by the business.
What is the interest rate you receive?
You will receive a base rate of 0.80% per month and a top-up bonus rate of between 0.05% and 0.15% per month, depending on your total investment across all working capital loans.
You will receive a bonus rate of 0.05% if you invest more than £5000 in working capital loans across all dealers, 0.10% if you invest more than £10,000 and 0.15% if you invest more than £20,000.
How can you control your exposure?
You can restrict the amount of automatic investment to be made to a single dealer - although the total loan amount to the dealer may consist of multiple loans. As working capital requirements vary over time in natural course of business or by opportunistic purchase of goods, the number and total amount of loan to a dealer will vary.