Join other 4thWay HNW investors: harness your combined power for an even better deal.
Same loans, higher rates, more loans, risk guarantees. Join now for free!
Funding Circle Shows How to Sell Loan Parts Quickly
Funding Circle, the oldest and largest business and property P2P lending company in the UK, has conducted analysis on how well lenders are able to sell their loan parts to other lenders when they want to get out early.
Selling business loan parts
Roughly 70% of Business loan parts that individual lenders put up for sale at the original value are successfully sold. When loan parts are sold at a discount, this rises above 80%.
Although half of Business loan parts are put up for sale at a premium, only around 40% of those are successfully sold.
The average time for selling a Business loan part is just under 15 hours. When selling at the original value this drops to 7.5 hours and it rises to 18.1 hours when selling at a premium.
Breaking the trend, selling at a discount also increases the average time slightly to just over 15 hours.
Selling property loan parts
Discounted property loan parts sell around 70%-80% of the time. However, when lenders try to sell property loan parts at original value or for a premium, the success rate plummets to far less than a quarter.
Funding Circle believes the drop is caused by ist temporary cashback offer on property deals, where you can often get around 1.5% in addition to interest rates of 8%.
About Funding Circle
Funding Circle is a business and property loans P2P lending company that is over four years old, and it matches tens of millions of pounds of loans each month. No Funding Circle lender who has diversified by lending no more than 1% of their money to any one borrower, and has lent for at least 180 days, has lost money before inflation and around half have made 6%-8%.
4thWay® does not recommend that you lend your money based on cashback, but that you consider the whole deal before committing.