payday loan

[sickParrot]

According to PriceOfFootball (@KieranMaguire on twitter) "West Brom have cashed in the £2.395m due from Watford for Craig Dawson in 2021 via a glorified payday loan arrangement with Australian ?‍♂️ bank Macquarie "

[Borin' Baggie]

So is this to cover cashflow or to cover spending in January?

[Kit Kat Chunky]

Payday loan is a bit severe.

I think  this more of a factoring agreement, so we don't have to wait for the monies in the summer. It does smack of gambling to gain promotion though. That said, if do use the monies to make some transfers, I think it is good we are taking some risks for a change. JRP would never have sanctioned this!!

As I say, i hope this isn't being used to cover up cashflow issues/lack of cash. Stoney Broke Tone used this bank when he was struggling, and it's interesting that Bournemouth used them as well to accelerate the payment of the Tyrone Mings fee.

[Pragmatist]

Payday loan is a bit severe.

I think  this more of a factoring agreement, so we don't have to wait for the monies in the summer. It does smack of gambling to gain promotion though. That said, if do use the monies to make some transfers, I think it is good we are taking some risks for a change. JRP would never have sanctioned this!!

As I say, i hope this isn't being used to cover up cashflow issues/lack of cash. Stoney Broke Tone used this bank when he was struggling, and it's interesting that Bournemouth used them as well to accelerate the payment of the Tyrone Mings fee.

I agree that this seems to be a factoring loan.  Macquarie Bank lend to
many football clubs currently. It may well be to help us to be proactive in the transfer market to secure players early, rather than having to sell before we can commit to buying, as part of a strong promotion push. We certainly don’t want to be having to wait until we know whether Ferguson is to be sold at the end of the window before we start buying.

[baggiebloke]

According to PriceOfFootball (@KieranMaguire on twitter) "West Brom have cashed in the £2.395m due from Watford for Craig Dawson in 2021 via a glorified payday loan arrangement with Australian ?‍♂️ bank Macquarie "

Nothing unusual here.

I wish I'd known about this yesterday when I was chatting with Mr. Jenkins in town.

[Mancbaggies]

It’s a Factoring Agreement. Just like a business selling its receivable debts at a discount for a lump sum. The factorer then collects

[SW4Baggie]

Macquirie are sharks, and in an ideal world we wouldn’t go near them, but they’re one of the few organisations which lend to football clubs.

Given the surpluses we’ve made in the transfer market in the last 18 months it’s odd we’re in a situation where we need to do this for such a small amount of cash, however factoring on a 2.5m payment is hardly enough to start serious alarm bells ringing.

[Pragmatist]

Macquirie are sharks, and in an ideal world we wouldn’t go near them, but they’re one of the few organisations which lend to football clubs.

Given the surpluses we’ve made in the transfer market in the last 18 months it’s odd we’re in a situation where we need to do this for such a small amount of cash, however factoring on a 2.5m payment is hardly enough to start serious alarm bells ringing.

The sum in question would cover the cost of a very good loan signing for the rest of the season. Equates to around £100k/week. Might even be two big loans. Shrewd signings to get us promoted? 

Zlatan apparently only wants £50k/week....?

[Kit Kat Chunky]

Macquirie are sharks, and in an ideal world we wouldn’t go near them, but they’re one of the few organisations which lend to football clubs.

Given the surpluses we’ve made in the transfer market in the last 18 months it’s odd we’re in a situation where we need to do this for such a small amount of cash, however factoring on a 2.5m payment is hardly enough to start serious alarm bells ringing.

They aren't sharks, they are a very well run bank. Their risk isn't us, but Watford honouring the transfer agreement.

Bournemouth use them for this purpose, and their owners have very deep pockets.

I'll have a look at the latest CFF later, see if there are any indications of problems, or whether this is just an acceleration of income. We may have made surpluses on transfers, but the receipt of cash from these deals is key. Clearly there is a mismatch between income and expenditure, hence the reason we are using this facility.

[fuzzbox]

Isn't the critical issue here how much it costs? With historic low-interest rates and a chance to put the money in this seasons FFP calculations, this could make sense regardless of whether us or Watford have the money.

Certainly better than leasing back a stadium or a training ground...

It could be seen as a positive that the board think we'll be promoted this season and won't need the receipts in the following seasons to balance ffp.