Rangers Announce Secure Loan - £1.5m. Repayable by 1st Sept

[Darthter 542]

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.

[Bluedell 5,330]

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%.

[calscot 0]

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.

[Super Cooper 0]

So the loan is for 7 months, how much will we actually repay?

[Bluedell 5,330]

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.

[calscot 0]

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.

[Frankie 8,151]

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.

[Bluedell 5,330]

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.

[BEARGER 1,829]

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.

[Calgacus 8]

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?