Lending cash – Ibook Linux http://www.ibooklinux.net/ Sun, 19 Sep 2021 01:37:41 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://www.ibooklinux.net/wp-content/uploads/2021/06/ibook-150x150.png Lending cash – Ibook Linux http://www.ibooklinux.net/ 32 32 This is still a great time to refinance investment property. here’s why https://www.ibooklinux.net/this-is-still-a-great-time-to-refinance-investment-property-heres-why/ https://www.ibooklinux.net/this-is-still-a-great-time-to-refinance-investment-property-heres-why/#respond Sat, 18 Sep 2021 16:56:00 +0000 https://www.ibooklinux.net/this-is-still-a-great-time-to-refinance-investment-property-heres-why/ The repayment costs depend on the terms of the loan Let’s say an investor has a loan of $ 250,000 over fifteen years at an interest rate of four percent. She will have a monthly payment of $ 1,849. With a thirty-year loan, she will have a monthly payment of $ 1,194. The monthly payment […]]]>

The repayment costs depend on the terms of the loan

Let’s say an investor has a loan of $ 250,000 over fifteen years at an interest rate of four percent. She will have a monthly payment of $ 1,849. With a thirty-year loan, she will have a monthly payment of $ 1,194. The monthly payment over fifteen years is 55% higher than that over thirty years for the same amount at the same rate.

In return for lower monthly payments on a thirty-year loan, a borrower pays significantly more interest. Using the same example of a $ 250,000 mortgage at four percent, on a thirty-year loan, she would pay $ 179,674 in interest at the end of the loan, for a total of 429. $ 674. If she took out a 15-year loan, she would only pay $ 82,860 in interest on the $ 250,000 principal, for a total of $ 332,860. Assuming the same four percent rate, that’s only about 46 percent of interest with a 15-year loan compared to what she would pay over a 30-year term.

Another investor, who wants to keep monthly payments as low as possible, could extend the term of their loan, swapping the lower payments for more long-term interest. Yet another, faced with changing monthly payments due to fluctuating interest rates on a variable rate mortgage, might opt ​​for a fixed rate mortgage to have more predictable monthly costs.

But that’s not all good news. One downside to refinancing to keep in mind is the closing costs. Be prepared to pay setup fees, appraisal fees, and title insurance fees, among other costs. Total closing costs can range from two to six percent of your loan amount, so for a mortgage of $ 250,000, a borrower can expect to pay between $ 5,000 and $ 15,000.

Cash-out refinancing allows investors to expand their portfolios

Home values ​​are rising and mortgage rates falling, which is a perfect formula for investors to take advantage of the increased value of their homes to expand their portfolios or to make improvements to properties they already own. If they have enough equity, they can do this through cash refinancing.

The principle is quite simple: an investor with a mortgage takes a new loan for a higher amount, repays the existing loan and leaves with the balance in cash. The investor can use these funds to improve a property, such as adding an addition to a home, finishing a basement and renting it out separately, upgrading an HVAC system, or replacing aging cabinets and floors. These measures can allow him to charge higher rents, increase tenant goodwill and improve the home’s resale value. An entrepreneurial investor could also use the money to expand their portfolio by putting down a down payment on a new property.

But there are obstacles in obtaining these loans.

First, it is more difficult to qualify. The investor should have more than twenty-five percent of their home equity as well as good credit, usually a score of 680 or more, but preferably 740 or more. It will also need to demonstrate cash reserves, typically up to one year of payments, on the refinanced property. Additionally, if she has loan balances on properties outside of her residence and the property being refinanced, she will need to have reserves equal to six percent of the outstanding balance. Finally, there is a six month waiting period to refinance after the initial loan closes.

To determine borrower eligibility, lenders use the “loan-to-value” ratio, or LTV, which is determined by the amount of the loan relative to the value of the home. If an investor has a $ 90,000 mortgage on a home worth $ 100,000, for example, the LTV is 90% because the loan is 90% of the value.

Fannie Mae and Freddie Mac guidelines may state LTVs of seventy to seventy-five percent. These may be too strict for some investors looking for cash refinancing. Some lenders have more lenient standards, especially after the agency that regulates them placed a stricter cap on the number of investment mortgages they can buy.

What Should Investors Know Before Refinancing?

Borrowers must be realistic. In any environment, they need to know what their property is worth, and they need to be aware of their credit status, to avoid any surprises. Banks will order an appraisal to confirm the value of a property.

Changes in income status brought about by the Covid-19 pandemic may also affect the loans they are eligible for.

“Anyone who is self-employed or self-employed should speak to their credit counselor to make sure they are still eligible,” says Sonia Eckard, credit counselor at Mynd. “There are a lot of temporary policy changes due to the Covid disruptions. Maybe they don’t qualify based on their tax returns if they’re self-employed or if they earn a commission based on sales.

This article originally appeared on Mynd.com and has been syndicated by MediaFeed.org.

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Alarm bells are ringing unheard in a world of optimism https://www.ibooklinux.net/alarm-bells-are-ringing-unheard-in-a-world-of-optimism/ https://www.ibooklinux.net/alarm-bells-are-ringing-unheard-in-a-world-of-optimism/#respond Sat, 18 Sep 2021 04:00:38 +0000 https://www.ibooklinux.net/alarm-bells-are-ringing-unheard-in-a-world-of-optimism/ High Yield Bond Updates Sign up for myFT Daily Digest to be the first to know about high yield bond news. Alarm bells are ringing, but is it any wonder that no one hears them? The world longs for optimism. Witness the joy of a British teenager winning the US Open or the interest in […]]]>

High Yield Bond Updates

Alarm bells are ringing, but is it any wonder that no one hears them? The world longs for optimism. Witness the joy of a British teenager winning the US Open or the interest in the Met Gala, which made headlines including this one.

Even in financial markets, the gauge that much of the American public considers a barometer of our country’s economic well-being – the $ 51 billion US stock market – has set record after record. And yet, there are good reasons to be concerned.

If a growing number of Wall Street analysts are to be believed – and there’s a compelling argument that they should be – the risks in one corner of the financial markets are starting to rise.

This year, investors hesitated deal after risky deal as they searched for places to park their money. The loans have been gigantic, pushing the US corporate bond market to nearly $ 11 billion, more than a tenth more than it was at the end of 2019 before the Covid-19 pandemic , according to Sifma, the securities industry trading group. But the terms on which these fund managers agreed to lend were surprisingly poor.

Rating agencies are already warning that the seeds of the next crisis, or at least the next cycle of failure, are being sown today. The pain will be particularly acute in the junk bond and leveraged loan market. This is where the riskiest companies fund themselves and where the private equity buyout shops fund their buyouts.

Analysts at credit rating provider S&P Global warned this month that growing risks in this market mean investors should demand more appropriate compensation for lending to it. But it turns out that “quite the opposite is now true,” analysts said.

As an example, Coinbase, the junk-rated cryptocurrency exchange that has found itself in the crosshairs of regulation, this week locked in a 10-year bond with an interest rate of just 3.625%. . The U.S. government paid less than half a percentage point below that amount to borrow as recently as 2018.

Marc Lasry, CEO of Avenue Capital Management, said this week at a conference that his company was forwarding “hundreds of deals” with the idea that in the years to come, many borrowers would run into problems.

“There are a lot of morons out there and a lot of people make huge mistakes,” he said. These fools have accepted weaker protections because so many other investors are willing to lend if they push back. The rally in stocks and falling borrowing costs have made financial conditions in the United States as flexible and easy as they’ve ever been, suggests an index compiled by Goldman Sachs dating back to 1982.

Column chart of private equity funded acquisitions volumes, by year (in billions of dollars) showing debt buyout stores closing deals at a record pace

Analysts at the Moody’s rating agency this week estimated that a lack of investor protection would cause private equity funds, which are heavy users of the junk bond and leveraged loan markets, to back down. pay large dividends to recoup the money they spend to buy out companies.

And private equity has certainly been active. Leveraged buyout activity has already reached an all-time high, surpassing the 2007 record, according to Refinitiv.

Therein lies a problem. Moody’s own analysis of corporate performance during the pandemic showed that private equity-backed groups were more often in default than the average high-yielding company. Excluding the oil and gas sector, 5.2% of U.S. companies rated as garbage defaulted between 2020 and 2021. For private equity firms, that figure stood at 8.4%.

So why lend at such low rates when investors know how a cycle of default will ultimately play out? In a forthcoming article in the Journal of Portfolio Management, New York University professor Edward Altman and Stanford University professor Mike Harmon argue that investors lend on “aggressive and very optimistic” expectations. “.

“By subscribing to a set of possible outcomes at the bullish end of the odds curve, investors appear to be making a very skewed bet on the downside,” they write.

In short: in the years to come, these investors could be left behind by taking care of the losses. During the financial crisis, large write-downs on credit portfolios hit Wall Street banks. But now the vast majority of these loans are made by credit funds on behalf of pensions, endowments and regular family investors. The system may not collapse, but retirement accounts may be affected.

Wary of risk when the financial world looks so rosy, some fund managers are pulling money off the table in search of safer bets.

That might not be the approach that shines in the short term – especially when loan yields to low-rated groups look so attractive compared to, well, whatever is on offer. But if we learned anything from the Met’s red carpet this week, it’s that not all bets pay off.

eric.platt@ft.com

Twitter: @ericgplatt

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Banks beware, Amazon and Walmart crack the finance code https://www.ibooklinux.net/banks-beware-amazon-and-walmart-crack-the-finance-code/ https://www.ibooklinux.net/banks-beware-amazon-and-walmart-crack-the-finance-code/#respond Fri, 17 Sep 2021 14:11:00 +0000 https://www.ibooklinux.net/banks-beware-amazon-and-walmart-crack-the-finance-code/ Investments in integrated finance jump in 2021, data shows Buy now, pay later, offers take center stage Fintech market valuations overtake banks LONDON, September 17 (Reuters) – Anyone can be a banker these days, all you need is the right code. Global brands from Mercedes and Amazon (AMZN.O) to IKEA and Walmart (WMT.N) cut out […]]]>
  • Investments in integrated finance jump in 2021, data shows
  • Buy now, pay later, offers take center stage
  • Fintech market valuations overtake banks

LONDON, September 17 (Reuters) – Anyone can be a banker these days, all you need is the right code.

Global brands from Mercedes and Amazon (AMZN.O) to IKEA and Walmart (WMT.N) cut out traditional financial intermediaries and connect software from tech startups to bring customers everything from banking and credit to insurance .

For established financial institutions, the warning signs are flashing.

So-called integrated financing – a fancy term for companies integrating software to offer financial services – means that Amazon can allow customers to “buy now and pay later” when they upgrade. checkout and Mercedes drivers can charge their cars for their fuel.

While banks are still at the origin of most transactions, investors and analysts say the risk for traditional lenders is that they are far from the beginning of the financial chain.

And that means they’ll be further removed from the mountains of data others are collecting about their customers’ preferences and behaviors – data that could be crucial in giving them an edge over banks in financial services.

“Integrated financial services take the concept of cross-selling to new heights. They are built on an ongoing, software-based data relationship with the consumer and the business, ”said Matt Harris, partner of investor Bain Capital Ventures.

“This is why this revolution is so important,” he said. “This means that all the good risks will go to these integrated companies who know so much about their customers and what is left will go to the banks and insurance companies.”

WHERE DO YOU WANT TO PLAY?

For now, many areas of integrated finance are barely shaking the dominance of banks and although some new entrants are licensed to offer regulated services such as lending, they lack the scale and funds to build on. deep funding from the biggest banks.

But if fintech firms, or fintechs, can match their success by capturing some of the banks’ digital payments – and ramping up their ratings in the process – lenders may have to respond, analysts say.

Stripe, for example, the payment platform behind many sites with customers including Amazon and Alphabet (GOOGL.O) Google, was valued at $ 95 billion in March. Read more

Accenture estimated in 2019 that new entrants to the payments market had amassed 8% of global revenue – and that share has grown in the past year as the pandemic has boosted digital payments and impacted traditional payments, said Alan McIntyre, senior director of banking at Accenture, said.

Now the focus is on loans, as well as off-the-shelf digital lenders with a variety of products that businesses can choose from and integrate into their processes.

“The vast majority of consumer-centric businesses will be able to launch financial products that will significantly improve their customer experience,” said Luca Bocchio, partner at venture capital firm Accel.

“This is why we are so excited about this space.”

So far this year, investors have invested $ 4.25 billion in integrated finance startups, nearly three times the amount in 2020, according to data provided to Reuters by PitchBook.

Swedish company BNPL (buy now pay later) Klarna, which has raised $ 1.9 billion, is leading the way.

DriveWealth, which sells technology that allows companies to offer fractional stock exchanges, has attracted $ 459 million while investors have invested $ 229 million in Solarisbank, a licensed German digital bank that offers a range of software banking services.

Shares of Affirm (AFRM.O), meanwhile, surged last month when it partnered with Amazon to offer BNPL products, while US rival Fintech Square (SQ.N) announced the Last month it bought Australian company BNPL Afterpay (APT.AX) for $ 29 billion.

Square is now worth $ 113 billion, more than Europe’s most valued bank, HSBC (HSBA.L), at $ 105 billion.

“Big banks and insurers will lose out if they don’t act quickly and figure out where to play in this market,” said Simon Torrance, founder of Embedded Finance & Super App Strategies.

Reuters Charts

DO YOU NEED A LOAN !

Several other retailers have announced plans this year to expand their financial services.

Walmart launched a fintech startup with investment firm Ribbit Capital in January to develop financial products for its employees and customers while IKEA took a minority stake in BNPL Jifiti last month.

Automakers such as Volkswagen’s Audi (VOWG_p.DE) and Tata’s Jaguar Land Rover (TAMO.NS) have experimented with integrating payment technology into their vehicles to facilitate payment, in addition to the Mercedes by Daimler (DAIGn.DE).

“Customers expect services, including financial services, to be directly integrated at the point of consumption and to be convenient, digital and immediately accessible,” said Roland Folz, Managing Director of Solarisbank, which provides banking services to more than 50 companies, including Samsung. .

It’s not just end consumers who are targeted by integrated finance startups. Businesses themselves are strained as their digital data is processed by fintechs such as Shopify of Canada (SHOP.TO).

It provides software to merchants and its Shopify Capital division also offers cash advances, based on analysis of over 70 million data points on its platform.

“No merchant comes to us and tells us I would like a loan. We go to the merchants and tell them, we think it’s time to finance you,” said Kaz Nejatian, vice president, products, merchant services. at Shopify.

“We don’t ask for business plans, we don’t ask for tax returns, we don’t ask for tax returns, and we don’t ask for personal guarantees. Not because we are benevolent, but because we believe that those- these are bad on the odds of success on the Internet, ”he said.

A Shopify spokesperson said funding increased from $ 200 million to $ 2 million. It provided $ 2.3 billion in cumulative capital advances and is valued at $ 184 billion, well above the Royal Bank of Canada (RY.TO), the country’s largest traditional lender.

FUTURE CONNECTED?

Shopify’s lending business is still overshadowed by the big banks, however. JPMorgan Chase & Co (JPM.N), for example, had a portfolio of consumer and community loans worth $ 435 billion at the end of June.

Major advances in financing companies in other sectors could also be constrained by regulators.

Officials at the Bank for International Settlements, a consortium of central banks and financial regulators, warned watchdogs last month to tackle the growing influence of tech companies in finance. Read more

Bain’s Harris said financial regulators take the approach that because they don’t know how to regulate tech companies, they insist there is a bank behind every transaction – but that doesn’t mean banks would prevent fintechs from encroaching.

“They are right that banks will always have a role but it is not a very rewarding role and it involves very little customer ownership,” he said.

Forrester analyst Jacob Morgan said banks need to decide where they want to be in the financial chain.

“Can they afford to fight for the primacy of the customer, or do they really see a more profitable path to the market to become the rails that other people run on?” ” he said. “Some banks will choose to do both.”

And some are already fighting.

Citigroup (CN) has partnered with Google on bank accounts, Goldman Sachs (GS.N) provides credit cards to Apple (AAPL.O) and JPMorgan purchases 75% of Volkswagen’s payments business and plans to expand to other sectors. read more 06:00:00

“Connectivity between different systems is the future,” said Shahrokh Moinian, head of wholesale payments, EMEA, at JPMorgan. “We want to be the leader.”

Reporting by Anna Irrera and Iain Withers; Editing by Rachel Armstrong and David Clarke

Our Standards: Thomson Reuters Trust Principles.

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MDC Holdings Announces Increase in Maximum Offer Amount and Initial Results of Cash Tender Offer https://www.ibooklinux.net/mdc-holdings-announces-increase-in-maximum-offer-amount-and-initial-results-of-cash-tender-offer/ https://www.ibooklinux.net/mdc-holdings-announces-increase-in-maximum-offer-amount-and-initial-results-of-cash-tender-offer/#respond Fri, 17 Sep 2021 01:00:00 +0000 https://www.ibooklinux.net/mdc-holdings-announces-increase-in-maximum-offer-amount-and-initial-results-of-cash-tender-offer/ DENVER, Sept. 16, 2021 / PRNewswire / – MDC Holdings, Inc. (NYSE: MDC) (“MDC” or the “Company”) today announced an increase in the previously announced maximum tender amount of $ 100,000,000 To $ 123,632,000 (the “maximum bid amount”) and the results of the anticipated bid as of 5:00 p.m., New York City It’s time September […]]]>

DENVER, Sept. 16, 2021 / PRNewswire / – MDC Holdings, Inc. (NYSE: MDC) (“MDC” or the “Company”) today announced an increase in the previously announced maximum tender amount of $ 100,000,000 To $ 123,632,000 (the “maximum bid amount”) and the results of the anticipated bid as of 5:00 p.m., New York City It’s time September 16, 2021 (the “Early Deposit Time”) of its previously announced cash tender offer (the “Tender Offer”) to purchase up to the maximum offer amount of its Senior Bonds at 5.500% outstanding due 2024 (the “Bonds”).

Based on the information provided by Global Bondholder Services, Inc., the agent responsible for the takeover bid, $ 123,632,000 the full principal amount of the Notes has been deposited (not withdrawn) before the Early Deposit Time. The following table shows the total principal amount of the Notes which were deposited (and not withdrawn) at the Time of the Early Offer and the principal amounts which, subject to the satisfaction of the conditions of the Public Offer described below. below, should be accepted for purchase under the Tender Offer:

Notes title

CUSIP number

Total amount of capital remaining due before the public tender offer

Total consideration 1

Total principal amount of banknotes deposited

Principal amount of tickets to be accepted for purchase

Pro rata
Factor

5.500% Senior
Notes due 2024

552676AR9

$

250,000,000


$

1,093.75


$

123,632,000


$

123,632,000


100.00

%
























1 Includes early submission bonus (as defined below).

The tender offer is made in accordance with the tender offer, dated September 2, 2021 (the “Offer to Purchase”). Notes which have been validly deposited and not validly withdrawn on or before the Early Deposit Time and which are accepted in the tender offer will be purchased, withdrawn and canceled by the Company on the Early Settlement Date, which should intervene on September 17, 2021.

Holders of Notes validly deposited (and not validly withdrawn) before the Early Deposit Time and accepted for purchase will receive the total consideration set out in the table above, which includes an Early Deposit Premium of $ 30.00 through $ 1,000 principal amount of Notes accepted for purchase (the “Early Deposit Bonus”). In addition to the full consideration, all holders of Notes validly deposited (and not validly withdrawn) before the early deposit time and accepted for purchase will receive accrued and unpaid interest from and including the last payment date. interest up to, but not including, the Settlement Date. The deadline for holders to validly withdraw from offers of Notes has passed. Consequently, the Contributed Notes can no longer be withdrawn or revoked, except in certain limited circumstances where additional withdrawal or revocation rights are required by law.

Given that the holders of Notes submitted to the Takeover Bid have validly deposited and have not validly withdrawn Notes no later than the Early Deposit Time for an amount equal to the Maximum Deposit Amount, all Securities validly deposited (and not validly withdrawn) no later than The invitation to tender should be accepted. Therefore, although the Takeover Offer is scheduled to expire at 11:59 p.m., New York City It’s time September 30, 2021, the Company does not expect to accept for purchase any offers of Notes after the early deposit time.

The Tender Offer is subject to satisfaction of the conditions described in the Tender Offer. These conditions may be waived by the Company at its sole discretion, subject to applicable law. Any waiver of any condition by the Company will not constitute a waiver of any other condition.

The broker-manager of the take-over bid is Citigroup Global Markets Inc. Any questions regarding the terms of the take-over bid should be directed to the broker-manager, Citigroup Global Markets Inc. at (toll free) (800) 558-3745 or (collect). ) (212) 723-6106. The information agent and tendering agent is Global Bondholder Services, Inc. Any questions regarding the procedures for the offering of Notes or requests for copies of the Offer to Purchase or other documents relating to the Offer to Purchase should be directed to the Offer to Purchase Information Agent, Global Bondholder Services, Inc. at (866) 470-4300 (toll free) or (212) 430-3774 .

This press release does not constitute an offer to sell, a solicitation to buy or an offer to buy or sell any securities. The tender offer is made only in connection with the tender offer and only in jurisdictions permitted by applicable law.

About MDC

MDC Holdings, Inc. was founded in 1972. MDC’s homebuilding subsidiaries, which operate as Richmond American Homes, have built and financed the American Dream for more than 220,000 buyers since 1977. Commitment from MDC towards customer satisfaction, quality and value is reflected in every home that its subsidiaries build. MDC is one of the largest home builders in United States. Its subsidiaries have home construction operations across the country, including the Denver metro areas, Colorado Sources, Salt lake city, Las Vegas, Phoenix, Tucson, RiversideSaint-Bernardin, Los Angeles, San Diego, Orange County, San Francisco Bay Area, Sacramento, Washington DC, Baltimore, Orlando, Jacksonville, Seattle, Portland, Wooded and Nashville. MDC’s subsidiaries also provide mortgage finance, insurance and title services, primarily to U.S. homebuyers in Richmond, through HomeAmerican Mortgage Corporation, American Home Insurance Agency, Inc. and American Home Title and Escrow Company, respectively. MDC Holdings, Inc. is listed on the New York Stock Exchange under the symbol “MDC”. For more information visit www.mdcholdings.com.

Certain statements contained in this press release and the offer to purchase may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and others. Factors that could cause MDC’s actual results, performance or achievements to differ materially from future results, performance or achievements expressed or implied by forward-looking statements. These factors include, among others, (1) general economic conditions, including the impact of the COVID-19 pandemic, changes in consumer confidence, inflation or deflation and employment levels; (2) changes in business conditions encountered by MDC, including restrictions on business activities resulting from the COVID-19 pandemic, cancellation rates, net home orders, gross home margins, value land and housing and the number of subdivisions; (3) changes in interest rates, mortgage programs and credit availability; (4) changes in the market value of MDC’s investments in marketable securities; (5) the uncertainty in the mortgage industry, including the redemption requirements associated with the sale of mortgages by HomeAmerican Mortgage Corporation (6) the relative stability of the debt and equity markets; (7) competition; (8) the availability and cost of land and other raw materials used by MDC in its home construction operations; (9) the availability and cost of performance guarantees and insurance covering the risks associated with our business; (10) labor shortages and cost; (11) weather-related slowdowns and natural disasters; (12) slow growth initiatives; (13) the construction of moratoria; (14) government regulations, including ordinances relating to the COVID-19 pandemic, interpretation of tax, labor and environmental laws; (15) terrorist acts and other acts of war; (16) the evolution of energy prices; and (17) other factors over which MDC has little or no control. Additional information on the risks and uncertainties applicable to MDC’s business is contained in MDC Form 10-Q for the quarter ended. June 30th, 2021. All forward-looking statements contained in this press release are made as of the date hereof, and the risk that actual results will differ materially from the expectations expressed in this press release will increase over time. MDC assumes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. However, any other disclosures made on related matters in our subsequent filings, releases or webcasts should be consulted.

SOURCE MDC Holdings, Inc.

Related links

http://www.mdcholdings.com

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Watch Now: Madison Public Libraries Loan E-Bike Passes | Science and environment https://www.ibooklinux.net/watch-now-madison-public-libraries-loan-e-bike-passes-science-and-environment/ https://www.ibooklinux.net/watch-now-madison-public-libraries-loan-e-bike-passes-science-and-environment/#respond Wed, 15 Sep 2021 21:45:00 +0000 https://www.ibooklinux.net/watch-now-madison-public-libraries-loan-e-bike-passes-science-and-environment/ A Madison Public Library Card will get you up to 100 books, movies, albums, video games, and audiobooks. Now he can move around town as well. Thanks to a new partnership between Madison BCycle and the Madison Public Library Foundation, library card holders can access one of more than 330 e-bikes for free. Modeled on […]]]>

A Madison Public Library Card will get you up to 100 books, movies, albums, video games, and audiobooks. Now he can move around town as well.

Thanks to a new partnership between Madison BCycle and the Madison Public Library Foundation, library card holders can access one of more than 330 e-bikes for free.

Modeled on a similar partnership to Omaha, the idea is to make e-bikes accessible to people who don’t have a credit card or smartphone, which are typically used to verify them.

Madison BCycle CEO Helen Bradley said equitable access was a top priority for the Bike Sharing Program, a subsidiary of Waterloo-based Trek Bicycle Corp.

“One of the biggest challenges BCycle faces… is just access for low-income users or those who don’t have a bank account or credit card,” Bradley said. “It was our way of navigating and delivering an action-based program that doesn’t require a cash transaction. “






A new partnership between Madison BCycle and the Madison Public Library Foundation allows library card holders to use one of more than 330 electric bikes for up to one week at a time.


AMBER ARNOLD, STATE JOURNAL ARCHIVES


Each of the public library’s nine branches will have two community passes – as well as headsets – that cardholders can view for up to a week at a time after signing a user agreement.

Cyclists can then use the pass to unlock bikes at any of the 52 stations for unlimited 60-minute rides, just as they would with a standard monthly or annual BCycle pass.

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Can P2P Loan Help Generate Passive Income? A Quick Guide – Forbes Advisor INDIA https://www.ibooklinux.net/can-p2p-loan-help-generate-passive-income-a-quick-guide-forbes-advisor-india/ https://www.ibooklinux.net/can-p2p-loan-help-generate-passive-income-a-quick-guide-forbes-advisor-india/#respond Mon, 13 Sep 2021 23:08:58 +0000 https://www.ibooklinux.net/can-p2p-loan-help-generate-passive-income-a-quick-guide-forbes-advisor-india/ Many people around the world are earning an income by making smart investment choices and implementing a system that helps them harness their skills without expending too much effort or time. Passive income refers to the profits that the system earns from an entity’s cash income and is derived from various sources without the need […]]]>

Many people around the world are earning an income by making smart investment choices and implementing a system that helps them harness their skills without expending too much effort or time. Passive income refers to the profits that the system earns from an entity’s cash income and is derived from various sources without the need to spend a considerable amount of time, energy, effort or other resources.

Some examples of passive income include portfolio income, rental income, royalty income, display advertising, while others include eBooks, YouTube channels, and P2P loans, among others.

What is the P2P loan?

P2P lending directly connects people with unused money who wish to lend to people in need of credit, eliminating intermediate margins. This allows lenders to get higher returns on their investments and borrowers to access quick loans at lower cost.

How can I earn with the P2P loan?

Lenders get back the money they lend in the form of IMEs – equivalent monthly investments – which include both principal and interest earned. Every month, the borrower repays the lenders through the IMEs. The P2P lending platform collects EMIs on behalf of the lender from the borrower and adds them to the lender’s escrow account from which the lender can choose to withdraw or invest again.

Most lenders are able to achieve high and stable returns by building a diversified portfolio. However, building a portfolio that mitigates the risk of default by spreading the investments among many borrowers with different risk, demographic, professional and other profiles can take time. P2P lending platforms involve innovative products and processes to reduce the time and effort required to build a portfolio.

How can my P2P loan income become passive income?

By definition, passive income should be earned without spending a lot of time and energy on it. P2P loan income can become passive income through smart investment decisions and choices.

1. Reinvestment

Lenders earn their income from the loans they invest in through IMEs which are credited monthly to their escrow account on the platform. They have the option of withdrawing these IMEs or reinvesting them in loans listed on the platform.

By reinvesting the lender chooses to:

  • Take advantage of the benefits of compound returns: Data shows that lenders who reinvest earn up to 10% more return than those who don’t.
  • Dramatically reduce time and effort: By enabling reinvestment, lenders ensure that their monthly income is automatically reinvested in the same products or plans they have selected and continues to generate returns for them. Thereafter, they do not have to spend more time investing these funds.

2. Automated investment

P2P lending platforms offer automated investment options that reduce the time and effort required to build a portfolio. Instead of spending time studying and selecting each borrower profile, you can choose to add funds to invest automatically and select the different parameters that match your investment strategy. The algorithm automatically builds your portfolio by matching your investment objectives with the borrower profiles listed on the platform.

Automatic investing is a more efficient and less time-consuming investment process that works for you to help you earn passive income.

3. Systematic Income Generation Plans

The newest, most efficient and fastest way to invest in P2P loans is for many investors to pool their money into a single portfolio to achieve efficiency in building and managing wallet.

The pool uses data science and artificial intelligence (AI) to create and manage a portfolio that has the potential to generate high and stable returns.

Once you have added the amount of your investment and authorized the platform to disburse it, your work is done. The platform’s algorithm will pour money from the pool into a diverse mix of loans and loan products that it believes have the repayment capacity to provide high overall returns.

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Put money back in your pocket | Business https://www.ibooklinux.net/put-money-back-in-your-pocket-business/ https://www.ibooklinux.net/put-money-back-in-your-pocket-business/#respond Sat, 11 Sep 2021 18:20:00 +0000 https://www.ibooklinux.net/put-money-back-in-your-pocket-business/ The current low interest rate environment is a great opportunity to refinance your existing loans. You may be familiar with mortgage refinancing, but the same benefits also apply to auto loans, recreational vehicle loans, boat loans, motorcycle loans, etc. If you have a loan, you may be able to lower your interest rate, pay off […]]]>

The current low interest rate environment is a great opportunity to refinance your existing loans. You may be familiar with mortgage refinancing, but the same benefits also apply to auto loans, recreational vehicle loans, boat loans, motorcycle loans, etc.

If you have a loan, you may be able to lower your interest rate, pay off your loan sooner, or lower your monthly payment by refinancing.

Why refinance?

Refinancing existing loans can increase your discretionary income – literally putting money back in your pocket every month with lower payments. There are many uses for the extra money, of course, but you may want to consider setting aside some of the extra money in a savings account.

According to a 2021 CNBC poll, only 39% of Americans could afford an emergency expense of $ 1,000.

Life is coming, so it is important to create a rainy day fund for you and your family. Once this is established, you can start investing for longer-term goals, like saving for a child’s or grandchild’s education.

Other common reasons to refinance include home improvements, paying for education, consolidating bills, or taking vacations.

Mortgages are what we often think of when we think of withdrawing money, but if you have equity in your vehicle, you will also be able to withdraw money for a vacation while keeping your payments the same thanks to the current low rate. environment.

Is refinancing right for you?

This question depends on various factors and each of the different scenarios should be considered. For example, refinancing an auto loan can be very simple and quick. It is not a long process and there is usually no cost to do it. Even documents can usually be signed electronically from home at your convenience.

The bottom line is, if it’s free and you’re saving money, refinancing your loan is a no-brainer.

For a mortgage, however, closing costs need to be factored in. These often run into the thousands of dollars once all of the required title, appraisal, and third-party fees are included.

While these fees are compatible with most mortgage lenders and can usually be included in your loan, you should make sure you understand any fees charged by the lender, which can vary widely.

With today’s historically low rates, mortgage refinancing can still be very beneficial. We often find that mortgage holders can get over closing costs in a year or two of payment savings. If your goal is to stay in your home for the next five to ten years, it probably makes sense to consider refinancing. If you are planning on moving or selling your home in a year or two, it may not be a good idea to refinance.

The best way to determine what will work for your situation is to discuss your options with a trusted financial partner. Everyone’s scenario is a little different. In central Kentucky, we are faced with a lack of housing availability. As a result, we see a lot of cash refinances when homeowners decide to add square footage or a swimming pool and make their current home their dream home.

Home equity lines of credit, commonly known as HELOCs, are another option for doing many of the same things without refinancing your existing mortgage. Now is the perfect time to make major improvements when interest rates are very, very low.

If you want to discuss your options with a local lender, it’s important to be prepared by understanding what your current payments are and interest rates. This will help your trusted financial expert see if they can save you money fast and make it easy for you to compare your options.

You may want to start by educating yourself online, calling, or stopping by a local branch to discuss what is available to you. We look forward to cooler weather and more money in your pocket this fall.

Chuck Eads is Director of Loans at Abbound Credit Union.

Chuck Eads is Director of Loans at Abbound Credit Union.

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CONCRETE PUMPING: Discussion and analysis by management of the financial position and operating results. (form 10-Q) https://www.ibooklinux.net/concrete-pumping-discussion-and-analysis-by-management-of-the-financial-position-and-operating-results-form-10-q/ https://www.ibooklinux.net/concrete-pumping-discussion-and-analysis-by-management-of-the-financial-position-and-operating-results-form-10-q/#respond Wed, 08 Sep 2021 21:11:05 +0000 https://www.ibooklinux.net/concrete-pumping-discussion-and-analysis-by-management-of-the-financial-position-and-operating-results-form-10-q/ You should read the following management discussion and analysis with Concrete Pumping Holdings, Inc. (the “Company”, “we”, “us”, “us” or “Successor”) Unaudited Consolidated Financial Statements and related notes included elsewhere in this Quarterly Report. Caution Regarding Forward-Looking Statements Certain statements in this Quarterly Report on Form 10-Q constitute "forward-looking statements" within the meaning of the […]]]>

You should read the following management discussion and analysis with
Concrete Pumping Holdings, Inc. (the “Company”, “we”, “us”, “us” or “Successor”) Unaudited Consolidated Financial Statements and related notes included elsewhere in this Quarterly Report.

Caution Regarding Forward-Looking Statements




Certain statements in this Quarterly Report on Form 10-Q constitute
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements include
statements regarding our business, financial condition, results of operations,
cash flows, strategies and prospects. These forward-looking statements may be
identified by terminology such as "likely," "may," "will," "should," "expects,"
"plans," "anticipates," "believes," "estimates," "predicts," "potential" or
"continue," or the negative of such terms and other comparable terminology.
Although we believe that the expectations reflected in the forward-looking
statements contained in this Report are reasonable, we cannot guarantee future
results. These statements involve known and unknown risks, uncertainties and
other factors that may cause the actual results, performance or achievements of
the Company to be materially different from those expressed or implied by the
forward-looking statements. We undertake no obligation to publicly update any
forward-looking statements, whether as a result of new information, future
events or otherwise. However, any further disclosures made on related subjects
in subsequent reports on Forms 10-K, 10-Q and 8-K should be considered.
Additionally, information about issues that could lead to material changes in
performance and risk factors that have the potential to affect us is contained
under the caption "Risk Factors" in our Form 10-K/A filed with the SEC on June
11, 2021.



Business Overview



The Company is a Delaware corporation headquartered in Thornton (near Denver),
Colorado. The unaudited consolidated financial statements included herein
include the accounts of Concrete Pumping Holdings, Inc. and its wholly owned
subsidiaries including Brundage-Bone Concrete Pumping, Inc. ("Brundage-Bone"),
Capital Pumping ("Capital"), and Camfaud Group Limited ("Camfaud"), and Eco-Pan,
Inc. ("Eco-Pan").



On December 6, 2018, the Company, formerly known as Concrete Pumping Holdings
Acquisition Corp., consummated a business combination transaction (the "Business
Combination") pursuant to which it acquired (i) the private operating company
formerly called Concrete Pumping Holdings, Inc. ("CPH") and (ii) the former
special purpose acquisition company called Industrea Acquisition Corp
("Industrea"). In connection with the closing of the Business Combination, the
Company changed its name to Concrete Pumping Holdings, Inc.



As part of the Company's business growth strategy and capital allocation policy,
strategic acquisitions are considered opportunities to enhance our value
proposition through differentiation and competitiveness. Depending on the deal
size and characteristics of the M&A opportunities available, we expect to
allocate capital for opportunistic M&A utilizing cash on the balance sheet and
the revolving line of credit. In recent years we have successfully executed on
this strategy, including our 2018 acquisition of Richard O'Brien Companies and
its affiliates, which solidified our presence in the Colorado and Phoenix,
Arizona markets and our 2019 acquisition of Capital Pumping, LP and its
affiliates, which provided us with complementary assets and operations and
significantly expanded our geographic footprint and business in Texas.



U.S. Concrete Pumping



Brundage-Bone and Capital are concrete pumping service providers in the United
States ("U.S."). Their core business is the provision of concrete pumping
services to general contractors and concrete finishing companies in the
commercial, infrastructure and residential sectors. Equipment generally returns
to a "home base" nightly and neither company contracts to purchase, mix, or
deliver concrete. Brundage-Bone and Capital collectively have approximately 90
branch locations across 19 states with their corporate headquarters in Thornton
(near Denver), Colorado.


we Concrete Waste management services




Eco-Pan provides industrial cleanup and containment services, primarily to
customers in the construction industry. Eco-Pan uses containment pans
specifically designed to hold waste products from concrete and other industrial
cleanup operations. Eco-Pan has 17 operating locations across the United States
with its corporate headquarters in Thornton, Colorado.



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U.K. Operations



Camfaud is a concrete pumping service provider in the United Kingdom ("U.K.").
Their core business is primarily the provision of concrete pumping services to
general contractors and concrete finishing companies in the commercial,
infrastructure and residential sectors. Equipment generally returns to a "home
base" nightly and does not contract to purchase, mix, or deliver concrete.
Camfaud has approximately 30 branch locations throughout the U.K., with its
corporate headquarters in Epping (near London), England. In addition, during the
third quarter of fiscal 2019, we started concrete waste management operations
under our Eco-Pan brand name in the U.K. and currently operate from a shared
Camfaud location.



Corporate


Our Corporate segment is mainly related to the intercompany leasing of real estate to some of our we Concrete pumping branches.



Impacts of COVID-19



In March 2020, the World Health Organization declared the outbreak of COVID-19
to be a global pandemic and recommended containment and mitigation measures
worldwide. The COVID-19 pandemic has rapidly changed market and economic
conditions globally and may continue to create significant uncertainty in the
macroeconomic environment.



In addition, during the second quarter of fiscal 2020, the COVID-19 pandemic
drove a sustained decline in our stock price and a deterioration in general
economic conditions, which qualified as a triggering event necessitating the
evaluation of our goodwill and long-lived assets for indicators of impairment.
As a result of the evaluation, we conducted a quantitative interim impairment
test as of April 30, 2020 resulting in non-cash impairment charges of $43.5
million and $14.4 million to our U.S. Concrete Pumping and U.K. Operations
reporting units, respectively. Through July 31, 2021, no subsequent triggering
events have been identified. We will continue to evaluate our goodwill and
intangible assets in future quarters. Additional impairments may be recorded in
the future based on events and circumstances, including those related to
COVID-19 discussed above.



Despite recent progress in administration of vaccines, both the outbreak, the
recent impact from the Delta variant and the containment and mitigation measures
have had and are likely to continue to have a serious adverse impact on the
global economy, the severity and duration of which are uncertain. It is likely
that government stabilization efforts will only partially mitigate the
consequences to the economy. To date, the COVID-19 pandemic has negatively
impacted revenue volumes primarily in the U.K. and certain markets in the U.S.
This impact was most heavily pronounced in the second and third quarters of
fiscal 2020. Beginning in the fourth quarter of fiscal 2020, revenue volumes
began showing signs of improvement, and as of the third quarter of fiscal 2021,
they have returned back to pre-pandemic levels for most of our markets in the
United States and near pre-pandemic levels in the United Kingdom; however, the
impact from COVID-19 remains an issue in certain markets. The full extent to
which the COVID-19 pandemic will impact the Company's business, financial
condition, and results of operations in the future is highly uncertain and will
be affected by a number of factors. These include the duration and extent of the
pandemic; the duration and extent of imposed or recommended containment and
mitigation measures; the extent, duration, and effective execution of government
stabilization and recovery efforts, including those from the successful
distribution of an effective vaccine; the impact of the pandemic on economic
activity, including on construction projects and the Company's customers' demand
for its services; the Company's ability to effectively operate, including as a
result of travel restrictions and mandatory business and facility closures; the
ability of the Company's customers to pay for services rendered; any further
closures of the Company's and the Company's customers' offices and facilities;
and any additional project delays or shutdowns. Customers may also slow down
decision-making, delay planned work or seek to terminate existing agreements.
Any of these events may have a material adverse effect on the Company's
business, financial condition, and/or results of operations, including further
impairment to our goodwill and intangible assets. The Company will continue to
evaluate the effect of COVID-19 on its business.



Notes Offering



In January 2021, Brundage-Bone Concrete Pumping Holdings Inc., a wholly-owned
subsidiary of the Company, closed its private offering of $375.0 million in
aggregate principal amount of senior secured second lien notes due 2026 (the
"Senior Notes"). The Senior Notes were issued at par and bear interest at a
fixed rate of 6.000% per annum. In addition, we amended and restated our
existing ABL credit agreement (the "ABL Facility") to provide up to $125.0
million (previously $60.0 million) of commitments. The offering proceeds, along
with approximately $15.0 million of borrowings under the ABL Facility, were used
to repay all outstanding indebtedness under our existing term loan agreement,
dated December 6, 2018, and pay related fees and expenses.



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Restatement and revision of financial statements for prior periods




As described in additional detail in the Explanatory Note to our Annual Report
on Form 10-K/A for the year ended October 31, 2020, filed on June 11, 2021, the
SEC released a public statement on April 12, 2021 (the "SEC Statement")
informing market participants that warrants issued by special purpose
acquisition companies ("SPACs") may require classification as a liability of the
entity measured at fair value, with changes in fair value each period reported
in earnings.



The Company previously classified its publicly traded warrants (the "public
warrants") and private placement warrants (the "private warrants") (collectively
the "Warrants"), which were issued in August of 2017, as equity. Following
consideration of the guidance in the SEC Statement, the Company concluded that
its Warrants should have been classified as liabilities and measured at fair
value, with changes in fair value each period reported in earnings. As such, the
Company previously restated its (1) consolidated financial statements as of
October 31, 2019 and for the Successor period from December 6, 2018 through
October 31, 2019 and (2) unaudited consolidated interim financial statements for
the periods ended July 31, 2019, April 30, 2019, and January 31, 2019. Also,
while not material, the Company previously revised its (1) consolidated
financial statements as of and for the fiscal year ended October 31, 2020 and
(2) unaudited consolidated interim financial statements for the periods ended
July 31, 2020, April 30, 2020, and January 31, 2020 to correct the accounting
for its Warrants. The unaudited consolidated financial statements for the three
and nine month periods ended July 31, 2020 included in this Quarterly Report on
Form 10-Q reflect the impacts of such revisions.



Results of Operations



                                               Three Months Ended July 31,           Nine Months Ended July 31,
(dollars in thousands)                         2021                 2020                2021               2020

Revenue                                    $      80,761       $        77,131     $      228,054       $  225,111

Cost of operations                                43,548                39,330            127,676          123,295
Gross profit                                      37,213                37,801            100,378          101,816
Gross margin                                        46.1 %                49.0 %             44.0 %           45.2 %

General and administrative expenses               24,951                26,954             73,812           79,941
Goodwill and intangibles impairment                    -                     -                  -           57,944
Transaction costs                                    111                     -                195                -
Income (loss) from operations                     12,151                10,847             26,371          (36,069 )

Other income (expense):
Interest expense, net                             (6,153 )              (8,364 )          (19,082 )        (26,632 )
Loss on extinguishment of debt                         -                     -            (15,510 )              -
Change in fair value of warrant
liabilities                                          260                (2,734 )          (11,195 )            130
Other income, net                                     32                    36                 85              139
Total other expense                               (5,861 )             (11,062 )          (45,702 )        (26,363 )

Income (loss) before income taxes                  6,290                  

(215) (19 331) (62 432)


Income tax expense (benefit)                       1,652                  (462 )             (826 )         (3,829 )

Net income (loss)                                  4,638                   247            (18,505 )        (58,603 )

Less accretion of liquidation preference
on preferred stock                                  (525 )                (489 )           (1,530 )         (1,432 )
Net income (loss) available to common
shareholders                               $       4,113       $          (242 )   $      (20,035 )     $  (60,035 )






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Three months ended July 31, 2021




For the three months ended July 31, 2021, our net income was $4.6 million, as
compared to a net income of $0.2 million in same period a year ago. The
improvement was due to (1) a 4.7% year-over-year increase in revenue, (2) $2.2
million in lower interest expense, (3) a $2.0 million reduction in general and
administrative expenses and (4) $3.0 million in lower warrant liability
revaluation expense. These amounts were offset by a $2.1 million increase in
income tax expense.


Nine months ended July 31, 2021




For the nine-month period ended July 31, 2021, our net loss was $18.5 million,
as compared to a net loss of $58.6 million in same period a year ago. The
primary driver of the lower net loss was a $15.5 million loss on extinguishment
of debt recorded in the fiscal 2021 first quarter in comparison to the $57.9
million goodwill and intangibles impairment recorded in the fiscal 2020 second
quarter. In addition, we had a $6.1 million improvement in general and
administrative ("G&A") expenses and a $7.6 million reduction in interest
expense. These amounts were offset by a year-over-year change in the fair value
of warrant liabilities of $11.3 million from $0.1 million of income in the
nine-month period ended July 31, 2020 to $11.2 million of expense in the same
period of 2021.



Total Assets


Total assets increased slightly from $ 773.8 million from October 31, 2020 To
$ 782.0 million from July 31, 2021.



                                          July 31,       October 31,
(in thousands)                              2021            2020
Total Assets
U.S. Concrete Pumping                     $ 577,398     $     570,536
U.K. Operations                             104,641           109,726
U.S. Concrete Waste Management Services     143,797           140,209
Corporate                                    26,454            25,517
Intersegment                                (70,324 )         (72,230 )
                                          $ 781,966     $     773,758




Revenue



                                              Three Months Ended July 31,                  Change
(in thousands)                                 2021                 2020              $              %
Revenue
U.S. Concrete Pumping                     $       58,025       $       58,644     $     (619 )         -1.1 %
U.K. Operations                                   12,652                9,208          3,444           37.4 %
U.S. Concrete Waste Management Services           10,122                9,390            732            7.8 %
Corporate                                            625                  625              -            0.0 %
Intersegment                                        (663 )               (736 )           73           -9.9 %
Total revenue                             $       80,761       $       77,131     $    3,630            4.7 %




                                             Nine Months Ended July 31,                 Change
(in thousands)                                 2021               2020             $              %
Revenue
U.S. Concrete Pumping                     $      166,509       $   171,209     $   (4,700 )         -2.7 %
U.K. Operations                                   34,285            28,294          5,991           21.2 %
U.S. Concrete Waste Management Services           27,552            25,978          1,574            6.1 %
Corporate                                          1,875             1,875              -            0.0 %
Intersegment                                      (2,167 )          (2,245 )           78           -3.5 %
Total revenue                             $      228,054       $   225,111     $    2,943            1.3 %






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U.S. Concrete Pumping



Revenue for our U.S. Concrete Pumping segment decreased by 1.1%, or $0.6
million, from the fiscal 2020 third quarter to the fiscal 2021 third quarter.
The second quarter of fiscal 2020 was impacted by COVID-19 primarily during the
month of April. While revenue in many of our markets has returned back to, or
even improved from pre-pandemic levels, the impact from COVID-19 in certain
markets, especially on commercial work, remains an issue and therefore drove the
decline in revenue. In addition, certain of our markets, most notably in Texas,
experienced record or close to record levels of rainfall impacting our ability
to provide service in these markets during the fiscal 2021 third quarter.



Revenue for our U.S. Concrete Pumping segment for the nine-month period ended
July 31, 2021 decreased by 2.7%, or $4.7 million, from the same period in fiscal
2020. Certain of our markets, most notably in Texas and the central part of the
United States, experienced severe adverse weather during the fiscal 2021
nine-month period, which included much higher than average levels of
precipitation and some historically rare freezing temperatures, which impacted
our ability to provide service. Furthermore, the fiscal 2020 first quarter had
no impact from COVID-19 while the fiscal 2021 first quarter was entirely
impacted by the effects of the pandemic.



U.K. Operations



Revenue for our U.K. Operations segment increased by 37.4%, or $3.4 million,
from the fiscal 2020 third quarter to the fiscal 2021 third quarter. Excluding
the impact from foreign currency translation, revenue was up 23.2% year over
year. For the nine-month period ended July 31, 2021, revenue for our U.K.
Operations segment increased by 21.2%, or $6.0 million, from the nine-month
period ended July 31, 2020. Excluding the impact from foreign currency
translation, revenue was up 11.8% year over year. The increase in revenue during
both periods was attributable to the recovery from the impact from COVID-19
which had a much stronger impact on our UK operations in the fiscal 2020 second
and third quarters.


we Concrete Waste management services




Revenue for the U.S. Concrete Waste Management Services segment increased by
7.8%, or $0.7 million, from the fiscal 2020 third quarter to the fiscal 2021
third quarter. For the nine-month period ended July 31, 2021, revenue for the
U.S. Concrete Waste Management Services segment increased by 6.1%, or $1.6
million, from the same period in fiscal 2020. The increase in revenue during
both periods was primarily due to organic growth, pricing improvements, and new
product offerings (such as our new roll off service, which allows for 100 to 120
concrete truck mixer wash outs) that more than offset impacts from COVID-19 in
certain markets.



Corporate



There was no change in revenue for our Corporate segment for the periods
presented. All activity in our Corporate segment is related to the intercompany
leasing of real estate to certain of our U.S Concrete Pumping branches. This
revenue is eliminated in consolidation through the Intersegment line included
above.



Gross Margin



Gross margin was 46.1% and 44.0% for the three and nine-month periods ended July
31, 2021, respectively, down 290 basis points and 120 basis points,
respectively, from the same periods in fiscal 2020. This slight decline in gross
margin is due to inflationary pressures seen throughout the US and UK,
specifically around labor and fuel costs.



General and administrative expenses




G&A expenses for the fiscal 2021 third quarter were $25.0 million, down 7.4%
from $27.0 million in the fiscal 2020 third quarter. As a percent of revenue,
G&A expenses were 30.9% for the fiscal 2021 third quarter compared to 34.9% in
the fiscal 2020 third quarter. During the fiscal 2020 third quarter, we recorded
a $2.0 million contingent liability charge for a potential settlement between
the Company and our previous shareholders as a result of carrying back certain
net operating loss carryforwards and remitting them to the prior shareholders.
There was no such charge in the fiscal 2021 third quarter. The other key driver
of the decline in our G&A expenses is lower amortization of intangible assets
expense of $1.5 million. These amounts were slightly offset by higher
administrative overhead expenses. Excluding non-cash G&A expenses related to
amortization of intangible assets and stock-based compensation expense, G&A
expenses were $17.0 million for the fiscal 2021 third quarter (21.1% of
revenue), down $0.5 million from $17.5 million for the fiscal 2020 third quarter
(22.6% of revenue).



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G&A expenses for the first nine-months of fiscal 2021 were $73.8 million, down
from $79.9 million in the first nine months of fiscal 2021. As a percent of
revenue, G&A expenses were 32.4% for the first nine-months of fiscal 2021
compared to 35.5% in the same period a year ago. The decrease was largely due to
lower amortization of intangible assets expense of $4.8 million and lower
stock-based compensation expense of $1.1 million. Excluding amortization of
intangible assets and stock-based compensation expense, G&A expenses were down
$2.4 million year-over-year. The primary driver of the decline was the
contingent liability charge discussed above.



Good will and depreciation of intangible assets


During the second quarter of fiscal year 2020, as a result of the COVID-19
impact on the Company's market capitalization, with the assistance of a third
party valuation specialist, we performed an interim impairment test over our
indefinite-lived trade name intangible assets and goodwill as of April 30, 2020.
The analysis resulted in $57.9 million in impairments, including a $5.0 million
impairment of our Brundage-Bone Concrete Pumping trade-name, a $38.5 million
goodwill impairment for our U.S Concrete Pumping reporting unit and a $14.4
million impairment to our U.K. Operations reporting unit. Through July 31, 2021,
no subsequent triggering events have been identified.



Change in fair value of liabilities related to warrants




During the third quarter of fiscal 2021 and 2020 we recognized a $0.3 million
gain and a $2.7 million expense, respectively, on the fair value remeasurement
of our liability-classified warrants. For the first nine-months of fiscal 2021
and 2020, we recognized an $11.2 million expense and a $0.1 million gain,
respectively, on the fair value remeasurement of our liability-classified
warrants. The significant increase seen in the fair value remeasurement of the
public warrants for the first nine months of fiscal 2021 is due to the
substantial increase in the Company's share price.



Transaction costs and debt extinguishment costs




Transaction costs include expenses for legal, accounting, and other
professionals that were engaged in connection with an acquisition. There were no
significant transaction costs incurred during the three and nine-month periods
ended July 31, 2021 or 2020.



On January 28, 2021, we (1) closed on our private offering of $375.0 million in
aggregate principal amount of senior secured second lien notes due 2026, (2)
amended and restated our existing ABL Facility to provide up to $125.0 million
(previously $60.0 million) of commitments and (3) repaid all outstanding
indebtedness under our then-existing term loan agreement, dated December 6,
2018. The $15.5 million in debt extinguishment costs incurred relate to the
write-off of all unamortized deferred debt issuance costs that were related to
the term loan.



Interest Expense, Net



Interest expense, net for the three months ended July 31, 2021 was $6.2 million,
down $2.2 million from $8.4 million in third quarter of fiscal 2020. Interest
expense, net for the nine-month period ended July 31, 2021 was $19.1 million,
down $7.6 million from $26.6 the nine-month period from a year ago. The
decreases in both periods were due to having lower average debt from strategic
refinance activities secured in January 2021 and the associated lower
competitive interest rates during the fiscal 2021 periods when compared to the
fiscal 2020 periods.


Income tax provision (benefit)




For the third fiscal quarter ended July 31, 2021, the Company recorded income
tax  expense of $ 1.7 million on pretax  income of $ 6.3 million. For the same
quarter a year ago, the Company recorded income tax  benefit of $ 0.5 million on
a pretax  loss of $ 0.2 million. For the first nine months of  2021, the Company
recorded income tax  benefit of $ 0.8 million on pretax  loss of $ 19.3 million.
For the same period a year ago, the Company recorded income tax  benefit of $
3.8 million on pretax  loss of $ 62.4 million. For the nine-month period ended
July 31, 2021, the Company's effective tax rate was significantly impacted by
the $11.2 million change in fair value of warrant liabilities, all of which is
not recognized for tax purposes. The effective tax rates for the three and
nine-month periods ended July 31, 2020 were impacted by (1) the respective
change in fair value of warrant liabilities, all of which is not recognized for
tax purposes, (2) a $2.0 million contingent liability charge that was not
deductible for tax purposes and (3) a $1.4 million discrete benefit from the
revaluation of net operating losses that were carried back during the period. In
addition, the income tax provision for the year-to-date period ended July 31,
2020 was impacted by the goodwill and intangibles impairment recorded during the
fiscal 2020 second quarter, as most of the impairment was not deductible, and a
rate change in the UK that drove an increase in expense to the tax provision of
$0.9 million.

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Contents

Adjusted EBITDA (1) and net income (loss)




                                 Net Income (Loss)                                      Adjusted EBITDA
                            Three Months Ended July 31,             Three Months Ended July 31,                 Change
(in thousands, except
percentages)                 2021                 2020               2021                 2020              $             %
U.S. Concrete Pumping   $         1,844       $         865     $       18,403       $       21,170     $  (2,767 )       -13.1 %
U.K. Operations                     384                 (20 )            4,087                3,397           690          20.3 %
U.S. Concrete Waste
Management Services               1,832               1,679              5,334                4,846           488          10.1 %
Corporate                           578              (2,277 )              625                  625             -           0.0 %
Total adjusted EBITDA   $         4,638       $         247     $       28,449       $       30,038     $  (1,589 )        -5.3 %




                               Net Income (Loss)                                   Adjusted EBITDA
                          Nine Months Ended July 31,           Nine Months Ended July 31,                 Change
(in thousands)               2021               2020            2021                2020              $             %

we Concrete pumping $ (11,759) $ (45,925) $ 49,995

    $      54,338     $  (4,343 )        -8.0 %
U.K. Operations                    254          (16,868 )          10,948               8,524         2,424          28.4 %
U.S. Concrete Waste
Management Services              3,282            2,904            13,037              12,650           387           3.1 %
Corporate                      (10,282 )          1,286             1,877               1,875             2           0.1 %

Total adjusted EBITDA $ (18,505) $ (58,603) $ 75,857

$ 77,387 $ (1,530) -2.0%

(1) Please refer to the “Non-GAAP Measures (EBITDA and Adjusted EBITDA)” section below.



U.S. Concrete Pumping



Adjusted EBITDA for our U.S. Concrete Pumping segment was $18.4 million for the
three months ended July 31, 2021 and $21.2 for the third quarter of fiscal 2020.
For the nine-month period ended July 31, 2021, adjusted EBITDA for our U.S.
Concrete Pumping segment was $50.0 million, down 8.0% from $54.3 million. The
year-over-year decline seen for both the three and nine-month periods was
primarily attributable to the year-over-year change in revenue and higher costs
due to inflation that drove a slight decline in our gross margins as discussed
previously.



U.K. Operations



Adjusted EBITDA for our U.K. Operations segment was $4.1 million for the three
months ended July 31, 2021 as compared to $3.4 million for the same period in
fiscal 2020. For the nine-month period ended July 31, 2021, adjusted EBITDA for
our U.K. Operations segment was $10.9 million, up 28.4% from $8.5 million for
the same period in fiscal 2020. The year-over-year increase was primarily
attributable to the year-over-year improvement in revenue discussed previously.



we Concrete Waste management services




Adjusted EBITDA for our U.S. Concrete Waste Management Services segment was $5.3
million for the three months ended July 31, 2021, up 10.1% as compared to $4.8
million for the same period in fiscal 2020. For the nine-month period ended July
31, 2021, adjusted EBITDA for our U.S. Concrete Waste Management segment was
$13.0 million, up 3.1% from $12.7 million in the same period in fiscal 2020. The
year-over-year increase was primarily attributable to the strong year-over-year
revenue growth coupled with slightly improved gross margins.



Corporate


There was no movement in Adjusted EBITDA for our Corporate segment for the two periods presented. Any year-over-year change for our Headquarters segment is primarily related to the allocation of overheads.

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Liquidity and capital resources



Overview



We use our liquidity and capital resources to: (1) finance working capital
requirements; (2) service our indebtedness; (3) purchase property, plant and
equipment; and (4) finance strategic acquisitions, such as the acquisition of
Capital. Our primary sources of liquidity are cash generated from operations,
available cash and cash equivalents and access to our revolving credit facility
under our Asset-Based Lending Credit Agreement (the "ABL Facility"), which
provides for aggregate borrowings of up to $125.0 million, subject to a
borrowing base limitation. As of July 31, 2021, we had $20.2 million of cash and
cash equivalents and $121.9 million of available borrowing capacity under the
ABL Facility, providing total available liquidity of $142.2 million.



Capital Resources



Our capital structure is primarily a combination of (1) permanent financing,
represented by stockholders' equity; (2) zero-dividend convertible perpetual
preferred stock; (3) long-term financing represented by our Senior Notes and (4)
short-term financing under our ABL Facility. We may from time to time seek to
retire or pay down borrowings on the outstanding balance of our ABL Facility or
Senior Notes using cash on hand. Such repayments, if any, will depend on
prevailing market conditions, our liquidity requirements, contractual
restrictions and other factors.



We believe our existing cash and cash equivalent balances, cash flow from
operations and borrowing capacity under our ABL Facility will be sufficient to
meet our working capital and capital expenditure needs for at least the next 12
months. Our future capital requirements may vary materially from those currently
planned and will depend on many factors, including our rate of revenue growth,
potential acquisitions and overall economic conditions. To the extent that
current and anticipated future sources of liquidity are insufficient to fund our
future business activities and requirements, we may be required to seek
additional equity or debt financing. The sale of additional equity could result
in dilution to our stockholders. The incurrence of debt financing would result
in debt service obligations and the instruments governing such debt could
provide for operating and financing covenants that would restrict our
operations.



Senior Notes and ABL Facility





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  Table of Contents



Senior Notes


The summary terms of the Senior Secured Notes are as follows:

? Provides for an initial aggregate principal amount of $ 375.0 million;

? The Senior Notes will mature and will be due and payable in full on February 1st,

      2026;
    ? The Senior Notes bear interest at a rate of 6.000% per annum, payable on
      February 1st and August 1st each year;

? The senior notes are guaranteed jointly and severally on a senior guaranteed security

based by the Company, Intermediate Acquisition of Concrete Pumping Corp. and

each of the national wholly-owned subsidiaries of the Issuer that are borrowers

and some of the guarantors under the ABL Facility (collectively, the

“The guarantors”). The Senior Bonds and the guarantees are guaranteed on a

of second priority by all the assets of the Issuer and the Guarantors

which secure the obligations under the ABL facility, subject to certain

exceptions. The Senior Bonds and the guarantees will belong to the Issuer and the

      Guarantors' senior secured obligations, will rank equally with all of the
      Issuer's and the Guarantors' existing and future senior indebtedness and
      will rank senior to all of the Issuer's and the Guarantors' existing and
      future subordinated indebtedness. The Senior Notes are structurally

subordinated to all existing and future debts and commitments of the

Subsidiaries of the Company which do not guarantee the Senior Bonds;

? The act includes certain restrictive clauses which limit, among other things, the

The issuer’s ability and the ability of its restricted subsidiaries to: incur

additional indebtedness and issuance of certain preferred shares; Make sure

restricted investments, distributions and other payments; create or engage

certain privileges; merge, consolidate or transfer all or substantially all

      assets; enter into certain transactions with affiliates; and sell or
      otherwise dispose of certain assets.




The outstanding principal amount of Senior Notes as of July 31, 2021 was $375.0
million and as of that date, the Company was in compliance with all covenants
under the Indenture.


Revolving Asset Based Credit Agreement

Summary terms of the ABL Facility, as modified on January 28, 2021, are the following:

? Availability of borrowing in we Dollars and GBP to a maximum of $ 125.0

millions and an accordion function under which the Company can increase the ABL

Ease up to a surcharge $ 75.0 million;

? Borrowing capacity available for stand-by letters of credit up to $ 7.5

million;

? All loans granted will fall due and be due and payable in full on 28 january,

    2026;


  ? Amounts borrowed may be repaid at any time, subject to the terms and
    conditions of the agreement;

? Loans in we Dollars and pounds sterling bear interest at (1) an adjusted rate

LIBOR rate or (2) a base rate, in each case increased by an applicable margin

currently set at 2.0% and 1.00% per annum, respectively. The ABL facility is

subject to a reduction of 0.25% based on excess availability levels;

? The obligations of the US ABL facility will be secured by a

security on almost all the assets of the American guarantors ABL,

subject to certain exceptions;

? UK The obligations of the ABL Facility will be guaranteed by a perfect first priority

security on almost all of the assets of the UK ABL guarantors; and

? The ABL facility also includes (i) a spring financial covenant (fixed

expense coverage rate) based on the excess availability levels that the Company

must comply on a quarterly basis during the required compliance periods and

    (ii) certain non-financial covenants.



There were no outstanding balances under the amended ABL facility at July 31, 2021 and at that date, the Company was in compliance with all debt covenants.




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  Table of Contents



Cash Flows



Cash generated from operating activities typically reflects net income, as
adjusted for non-cash expense items such as depreciation, amortization and
stock-based compensation, and changes in our operating assets and liabilities.
Generally, we believe our business requires a relatively low level of working
capital investment due to low inventory requirements and customers paying the
Company as invoices are submitted daily for many of our services.



Net cash provided by operating activities generally reflects the cash effects of
transactions and other events used in the determination of net income or loss.
Net cash provided by operating activities during the nine-month period ended
July 31, 2021 was $60.3 million. The Company had a net loss of $18.5 million
that included an increase of $1.4 million in our net deferred income taxes, a
gain on sale of assets of $1.1 million, and significant non-cash charges
totaling $75.6 million as follows: (1) depreciation of $21.2 million, (2)
amortization of intangible assets of $20.5 million, (3) amortization of deferred
financing costs of $1.9 million, (4) loss on extinguishment of debt expense of
$15.5 million, (5) stock-based compensation expense of $5.3 million, and (6) an
$11.2 million increase in the fair value of warrant liabilities. In addition, we
had cash inflows primarily related to the following activity: (1) a decrease of
$0.5 million in trade receivables, (2) an increase of $5.9 million in accrued
payroll, accrued expenses and other current liabilities and (3) an increase of
$0.8 million in income taxes payable. These amounts were partially offset by net
cash outflows primarily related to a $1.3 million increase in prepaid expenses
and other current assets.



We used $29.5 million to fund investing activities during the nine-month period
ended July 31, 2021. The Company used $34.6 million for the purchase of
property, plant and equipment, which was partially offset by proceeds from the
sale of property, plant and equipment of $5.1 million.



Net cash used in financing activities was $16.9 million for the nine-month
period ended July 31, 2021. Financing activities during this period included
$1.9 million in net borrowings under the Company's ABL Facility, $375.0 million
in proceeds from the issuance of Senior Notes, $381.2 million in payments made
to extinguish the Term Loan Agreement and $8.5 million in debt issuance costs.



Net cash provided by operating activities during the nine-month period ended
July 31, 2020 was $53.5 million. The Company had a net loss of $58.6 million
that included a non-cash gain of $0.1 million from the change in fair value of
warrant liabilities, a loss of $0.1 million in our net deferred income taxes, a
gain on sale of assets of $0.9 million and significant non-cash charges totaling
$110.0 million as follows: (1) Goodwill and intangibles impairment of $57.9
million, (2) depreciation of $19.5 million, (3) amortization of intangible
assets of $25.3 million, (4) amortization of deferred financing costs of $3.1
million and (5) stock-based compensation expense of $4.2 million. In addition,
we had cash outflows related to the following activity: (1) a $3.5 million
increase in prepaid expenses and other current assets, (2) a $1.5 million
decrease in accounts payable, (3) a decrease of $3.9 million in income taxes
payable and (4) a $0.5 million payment of contingent consideration in excess of
amounts established in purchase accounting. These amounts were partially offset
by net cash inflows primarily related to the following activity: (1) a decrease
of $1.7 million in trade receivables and (2) an increase of $10.8 million in
accrued payroll, accrued expenses and other current liabilities.



We used $30.3 million to fund investing activities during the nine-month period
ended July 31, 2020. The Company used $36.7 million for the purchase of
property, plant and equipment, which was partially offset by proceeds from the
sale of property, plant and equipment of $6.4 million.



Net cash provided by financing activities was $27.8 million for the nine-month
period ended July 31, 2020. Financing activities during this period included
$10.7 million in net borrowings under the Company's ABL Credit Agreement and was
partially offset by payments on the Term Loan Agreement of $15.7 million and the
payment of the contingent consideration in connection with the acquisition of
Camfaud of $1.2 million.



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Non-GAAP measures (EBITDA and Adjusted EBITDA)




We calculate EBITDA by taking GAAP net income and adding back interest expense,
income taxes, depreciation and amortization. Adjusted EBITDA is calculated by
taking EBITDA and adding back transaction expenses, loss on debt extinguishment,
stock-based compensation, other income, net, goodwill and intangibles
impairment, and other adjustments. We believe these non-GAAP measures of
financial results provide useful information to management and investors
regarding certain financial and business trends related to our financial
condition and results of operations, and as a tool for investors to use in
evaluating our ongoing operating results and trends and in comparing our
financial measures with competitors who also present similar non-GAAP financial
measures. In addition, these measures (1) are used in quarterly and annual
financial reports prepared for management and our board of directors and (2) may
be used to help management determine incentive compensation. EBITDA and Adjusted
EBITDA have limitations and should not be considered in isolation or as a
substitute for performance measures calculated under GAAP. These non-GAAP
measures exclude certain cash expenses that we are obligated to record on our
GAAP financial statements. In addition, other companies in our industry may
calculate EBITDA and Adjusted EBITDA differently or may not calculate it at all,
which limits the usefulness of EBITDA and Adjusted EBITDA as comparative
measures. Transaction expenses represent expenses for legal, accounting, and
other professionals that were engaged in the completion of various acquisitions.
Transaction expenses can be volatile as they are primarily driven by the size of
a specific acquisition. As such, we exclude these amounts from Adjusted EBITDA
for comparability across periods. Other adjustments include severance expenses,
director fees, expenses related to being a publicly-traded company and other
non-recurring costs. In addition, within the individual segment presentations
only, other adjustments also include transfer pricing and allocation of
intercompany related expenses, which are eliminated in consolidation.

© Edgar online, source Previews

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P2P Lender Robo.cash Recommends Investment Diversification Strategies, Shares Recent Crypto Survey Results https://www.ibooklinux.net/p2p-lender-robo-cash-recommends-investment-diversification-strategies-shares-recent-crypto-survey-results/ https://www.ibooklinux.net/p2p-lender-robo-cash-recommends-investment-diversification-strategies-shares-recent-crypto-survey-results/#respond Sat, 28 Aug 2021 18:48:36 +0000 https://www.ibooklinux.net/p2p-lender-robo-cash-recommends-investment-diversification-strategies-shares-recent-crypto-survey-results/ Peer-to-peer lender Robo.cash Note that depending on the maturity of the loan, you can either stick to an “urgent liquidity strategy” or “wait for your passive income”. According to the Croatian P2P lending platform, a third option is also possible. For example, you can split an investment portfolio into two or more types, which is […]]]>

Peer-to-peer lender Robo.cash Note that depending on the maturity of the loan, you can either stick to an “urgent liquidity strategy” or “wait for your passive income”. According to the Croatian P2P lending platform, a third option is also possible. For example, you can split an investment portfolio into two or more types, which is yet another “alternative” that Robo.cash has recently explored and suggested to its clients.

As explained by Robo.cash, diversification is a way to “mitigate” risk by spreading your assets over “a wide range of investments in your portfolio”. The P2P lender wrote in a blog post that “despite the apparent complexity, this method is suitable for both experienced and novice investors”.

As stated by Robo.cash:

“What does Robocash offer in terms of diversification? If you put half of your portfolio in two-year Singaporean loans and the other half in short-term Spanish loans, your return at the end of the first year could be 11.4%. If you divide the portfolio into five parts based on the different interest rates on the platform, then at the end of the year your profitability can reach 11.5%.

The company also mentioned that the emergence of risks when investing through a peer-to-peer platform is primarily “associated with a possible default”. In order to keep your security concerns’ at zero ‘, the Robo.cash platform also provides a’ 100% redemption guarantee.

As explained by the P2P lender, this means that it “reimburses you for the amount invested and the interest for both the term of the loan and the redemption period”.

As stated in a blog post from Robo.cash:

“In the event of potential default by the lender, we subscribe to the Group Guarantee. We closely monitor the financial flows of our loan originators and, in the event of a threat, we suspend the lender’s activities on the platform and fulfill all obligations to investors, including interest earned.

Currently, there are many ways to build a portfolio, “depending on your goals and desires,” the Robo.cash team added while noting that it is “only important to periodically review the distribution proportions by due to the introduction of new types of loans, interest rate changes or new offers to increase the efficiency of the investment.

While sharing other updates, the Robo.cash team revealed that a recent survey by analysts at the digital investment platform “shows that 65.8% of European investors have crypto assets in their wallets “. Virtual currency “ranks third in popularity among other assets, after P2P investments and stocks.”

As noted by the P2P lender, the number of investors who “increased the share of this alternative asset in 2021 is 42%, compared to 31% in 2020”. Additionally, “a third of those who deal with cryptocurrency said they are making a significant profit.”

But “the overwhelming majority of crypto investors (82.9%) have limited their share to a quarter of the total investment portfolio,” noted the Robo.cash team while adding that only 34.2% of respondents have “no digital currency in their wallet”. “

As indicated by the P2P lending platform:

“When asked directly if this year’s bitcoin rally had influenced the evolution of investor asset balance, only 15.5% responded that this was why the share of crypto -money was increased. Three in five respondents (61.8%) in turn confirmed that the surge in bitcoin quotes had no effect on them.

The Robo.cash team also mentioned:

“The determining factor in choosing an asset is the combination of reliability and profitability. Thus, according to respondents, the best options are stocks (38.4%) and P2P investments (20.6%), which offer an attractive rate of return in conjunction with a good degree of security guarantee (Redemption Guarantee , etc.). ”

In particular, gold, the “first asset of 2021” as predicted by Robo.cash analysts, gained “a modest 3.2%”.

As reported by analysts at Robo.cash:

“Apparently, the traditional asset, despite its fairly high reliability, finds little response from the ‘new generation’ of modern investors. Rather, the interest in crypto is driven by the broad outlook for P2P investors looking for optimal investment opportunities.

Analysts further noted:

“Another supporting factor is the constantly increasing strategic trend. However, the extremely high volatility of cryptocurrency prices is undoubtedly a serious deterrent. In this sense, the guaranteed high profitability inherent in P2P investments is much more attractive to European investors, and this interest is growing. This is confirmed by the fact that 46.7% of respondents intend to increase their share of P2P investments in wallets this year.

It should be noted that major cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) have consistently outperformed P2P investment options over a longer period of time over the past decade.

For investors with a longer time horizon (at least 4 years or more), it may be more beneficial at this stage to allocate significantly more funds to crypto-assets in an investment portfolio compared to P2P investments, but only if the investor has a greater appetite for risk and truly understands the digital asset market (by doing independent research).

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Account aggregators could help country democratize credit https://www.ibooklinux.net/account-aggregators-could-help-country-democratize-credit/ https://www.ibooklinux.net/account-aggregators-could-help-country-democratize-credit/#respond Sun, 22 Aug 2021 16:48:33 +0000 https://www.ibooklinux.net/account-aggregators-could-help-country-democratize-credit/ Jigneshbhai and lenders like him are experts in judging two crucial elements of creditworthiness: willingness and the ability to repay. An intimate knowledge of the lives of their borrowers allows them to determine with some precision their net worth and their reputation as one-time payers. Of course, village gossip plays a major role in providing […]]]>

Jigneshbhai and lenders like him are experts in judging two crucial elements of creditworthiness: willingness and the ability to repay. An intimate knowledge of the lives of their borrowers allows them to determine with some precision their net worth and their reputation as one-time payers. Of course, village gossip plays a major role in providing this information. India is home to hundreds of thousands of Jigneshbhais.

This approach, although extremely effective in a small market such as a village, is not scalable. This is why, historically, financial service providers (FSPs) such as banks and non-bank financial corporations (NBFCs) have relied on collateral to make lending decisions. In the absence of collateral, institutions are naturally wary of non-payment and borrower fraud.

For a very long time in India, no collateral meant no loan. If loan seekers were unable to provide adequate assets for collateral, lenders could not trust them to meet their end of contract and could not justify granting them loans, given insufficient evidence. of their ability and willingness to repay.

The demand for credit in India, however, far exceeds institutional supply. PSF are well aware of this demand. And they looked for ways to do what Jigneshbhai does so that they could lend without collateral.

In the absence of collateral, the only way to assess a consumer’s willingness and ability to repay is to look at the potential borrower’s cash flow. And as the PSF do not have access to village gossip, they rely on good old bank statements for this.

Your bank statement is a digital representation of your financial life. How much money are you making? Where do you spend your money? How many fixed obligations do you have (such as rent, credit card bills, and equal monthly payments for loan payments)? Are you paying your bills on time? These are all essential inputs in assessing your willingness and ability to repay a loan. Especially in the absence of a guarantee.

However, this process based on bank statements is very manual, time consuming, expensive and has the potential for abuse. These shortcomings have held back cash flow based lending in India for too long. The country’s borrowers have been underserved due to the preference for secured loans and hampered by the cumbersome red tape when it comes to unsecured loans. New era lenders have broken new ground in data acquisition by browsing users’ SMS inboxes and other methods. This has led to legitimate consumer fears that their personal data could be misused and sold for profit through unauthorized data transfers.

FSFs and consumers urgently need a transparent digital way to share account information.

The account aggregation framework announced by the Reserve Bank of India (RBI) is a new financial infrastructure that promises to solve these problems. It aims to make sharing financial data as easy as performing a UPI (Unified Payments Interface) transfer. Imagine being able to share your financial data just by entering a 4-digit PIN code and giving your consent. No more printing of statements, no more netbanking connections. Just a simple PIN code. This is the promise of account aggregation, as envisioned by RBI.

Account aggregators (AAs), with their user interface, will play a central role in bridging the trust gap between PSPs and consumers.

First, they allow users to control who has access to their data, track and record their movements, and reduce the potential risk of leakage in transit.

Second, a one-stop-shop format enables user-friendly data movement and reduces the need for physical transfers and post-facto attestations. AA creates an industry default standard for consent that eliminates the dense fine print buried in most privacy policies.

Finally, with the security of this data being acquired, AA allows lenders (or other FSPs for that matter) to rely on a wider selection of data points to determine a borrower’s reliability and track record. existing systems, thereby reducing the risk associated with the deployment of financial products. More data points and less risk allow FSPs to design tailor-made products by innovating on lower-priced loans and also offer flexible repayment schedules, thus reducing the likelihood of default. It gives FSPs a space to enable companies with non-traditional credit models or histories to participate in the financial ecosystem.

Through AA, FSPs have the ability to provide cash flow-based credit, personalized financial management tools, robo-advisory services, and many other innovative financial products and services to a wider range of people. For India’s countless ambitious borrowers, their financial data will be the key to unlocking access to affordable credit, which would help many of them break the vicious circles of debt.

We will soon see a “UPI moment” in data sharing that promises the democratization of credit on an unprecedented scale. By integrating security, transparency and agility into data sharing, AA could usher in the most significant transformation of the Indian fintech landscape to date.

Sahil Kini and Neeti Bhatt are CEO and co-founder of Setu, respectively, and a researcher at D91 Labs, Setu’s independent user research division.

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