Darthter 542 Posted February 24, 2014 Share Posted February 24, 2014 15% payable on a 6 month loan is 30% pa. It doesn't really matter what they call it, it's 30% interest. no....it's 15% setup fee on a 6 month loan. Simply doubling the loan term, doesn't automatically double the % of the setup fee!!!! If they were to take out a 2nd 6 month loan on the same terms, then they would be paying a 30% setup fee on £2m. Doubling up the figures only serves to make it sound a lot worse than it possibly is - extrapolating figures for something that doesn't exist only serves to panic folk. 0 Quote Link to post Share on other sites More sharing options...
Bluedell 5,886 Posted February 24, 2014 Share Posted February 24, 2014 no....it's 15% setup fee on a 6 month loan. Simply doubling the loan term, doesn't automatically double the % of the setup fee!!!! If they were to take out a 2nd 6 month loan on the same terms, then they would be paying a 30% setup fee on £2m. Doubling up the figures only serves to make it sound a lot worse than it possibly is - extrapolating figures for something that doesn't exist only serves to panic folk. It's looking at the effective annual rate of interest. Calling it a set-up fee is just trying to trick people into not realising how expensive it actually is. It doesn't matter what they call it, the annualised cost works out at 30%. 0 Quote Link to post Share on other sites More sharing options...
calscot 0 Posted February 24, 2014 Share Posted February 24, 2014 no....it's 15% setup fee on a 6 month loan. Simply doubling the loan term, doesn't automatically double the % of the setup fee!!!! If they were to take out a 2nd 6 month loan on the same terms, then they would be paying a 30% setup fee on £2m. Doubling up the figures only serves to make it sound a lot worse than it possibly is - extrapolating figures for something that doesn't exist only serves to panic folk. It's actually calculating the APR which is the standard used for comparing loans. I really don't get your logic at all. Doubling it to show the yearly interest doesn't show it to be worse, it shows it to be exactly what it is - 30% per annum, no matter which way you care to look at it. Just because you drove for only 30 minutes for a 30 mile journey, doesn't mean a policeman saying you averaged 60 miles an HOUR is making it sound a lot worse than it was. No wonder Wonga do so well with that kind of thinking. 0 Quote Link to post Share on other sites More sharing options...
Super Cooper 0 Posted February 24, 2014 Share Posted February 24, 2014 So the loan is for 7 months, how much will we actually repay? 0 Quote Link to post Share on other sites More sharing options...
Bluedell 5,886 Posted February 24, 2014 Share Posted February 24, 2014 So the loan is for 7 months, how much will we actually repay? Assuming it's made at the end of this week then it's around 6 months. 0 Quote Link to post Share on other sites More sharing options...
calscot 0 Posted February 24, 2014 Share Posted February 24, 2014 So the loan is for 7 months, how much will we actually repay? Sounds like we're paying a fee of 150k for a 1m loan. The strange thing is that even people using Wonga are usually more savvy. They borrow until pay day and then pay it back when the money comes in. Our pay day is in June and yet we're borrowing till September. It's like getting a Wonga loan a few days before you get your monthly wage and then inexplicably paying it back three weeks later and accumulating all the interest for nothing. 0 Quote Link to post Share on other sites More sharing options...
Frankie 8,830 Posted February 24, 2014 Share Posted February 24, 2014 It seems the board of our club have a different meaning for 'pleased' as I do. Embarrassed should be more apt given the amount of money raised for the club in the last 14 months. 0 Quote Link to post Share on other sites More sharing options...
Bluedell 5,886 Posted February 24, 2014 Share Posted February 24, 2014 Sounds like we're paying a fee of 150k for a 1m loan. The strange thing is that even people using Wonga are usually more savvy. They borrow until pay day and then pay it back when the money comes in. Our pay day is in June and yet we're borrowing till September. It's like getting a Wonga loan a few days before you get your monthly wage and then inexplicably paying it back three weeks later and accumulating all the interest for nothing. It syas that it will be repayable no later than 1/9, but perhaps the directors have verbally agreed to pay it earlier, say 1/7 (day after the year end), which increases the effective interest rate to 45% pa. 0 Quote Link to post Share on other sites More sharing options...
BEARGER 1,853 Posted February 24, 2014 Share Posted February 24, 2014 Easdale's cash comes on a no-fee and no-interest basis, while Laxey Partners will lend the club £1m, with both sums secured against the Edmiston House and Albion car park facilities near to Ibrox. “ These credit facilities will be used by the company for general working capital purposes over the next few months ” Rangers statement Both loans are repayable by 1 September, while Laxey Partners, the club's single-biggest shareholder with an 11.64% stake, standing to make a £150,000 profit on its part of the deal. 0 Quote Link to post Share on other sites More sharing options...
Calgacus 8 Posted February 24, 2014 Share Posted February 24, 2014 My memory is not what it was...but didn't our CE say a few months ago that we had enough money to get through the season? 0 Quote Link to post Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.