Where Can You Buy Or Sell Existing Loans?

Here we list all the peer-to-peer lending providers that offer secondary markets, which is where you can buy and sell existing loans. See how much they cost and whether you can buy and sell loans at a discount or premium.

A peer-to-peer lending secondary market – or marketplace – allows you to buy and sell existing loans after they have already begun.

Why would you do this? Because it can be quicker, safer or more profitable:

  • You might sell because you need the cash before the loans are repaid.
  • Or you sell because you think the borrower is not as safe as you previously thought.
  • You might buy and sell at a higher price to make a profit. (More on that in Trading Loan Parts At A Profit Or Loss.)
  • You might buy existing loans because they have become safer – for example, because a property-developer borrower has completed the property's foundations without problem, so the risks of delays or budget problems has decreased.
  • Buying existing loans can also be quicker than waiting for new loans to become available. You can simply start lending straight away by buying out another lender who wants to sell.

There can also be reasons not to buy and sell on the secondary market. You can read about those in Trading Loan Parts At A Profit Or Loss.

It's these secondary marketplaces that allow us to exit loans early or to start lending right away instead of waiting for new loan deals to close.

Below, we show you all the P2P lending websites with secondary markets and a few details about them, such as the costs of using them or if you can sell impaired loans (e.g. loans that are late or have gone bad).

Peer-to-peer lending secondary markets where you can set prices

If you want to be able to sell your loan parts for more or less than you paid, at a price you specify, most of the following P2P lending websites offer this.

This means you might have lent £1,000 and now you want to sell your loan part to someone else for, say, £900 to sell quickly, or make a profit by selling it for £1,100. Or you could be the buyer of that loan part.

With these marketplaces, the seller of the loan part usually sets the prices and then buyers choose whether to buy or not.

To find out why you might buy or sell at a discount or a premium, rather than “at par”, read Trading Loan Parts At A Profit Or Loss.

Some platforms cap the size of any discount or premium, e.g. at 3%. So a £1,000 loan part could be sold for no less than £970 and no more than £1,030.

Here's the list of secondary markets where you can set prices:.

P2P Lending Website Fees Can Sell At Premium/Discount  Notes
Abundance Generation No Yes
Assetz Exchange* No Yes Assetz Exchange might cap the premium for each loan, but has no standard formula for doing so
AxiaFunder* Buy: 3% (incl. VAT and stamp duty reserve tax)
Sell: 2.5% (incl. VAT)
Yes, subject to caps specified by AxiaFunder AxiaFunder will set minimum amount you can sell. You can't yet sell all types of investments available through AxiaFunder, for technical reasons
BLEND Network Sell: 0.6% No No selling when the borrower is late or when the repayment date nears; the new lender buys any accrued interest that has not been paid out at face value, which can lead to a tax loss (read more)
CapitalRise* Sell: 1.5% No
CapitalStackers* No Yes
Crowd2Fund Sell: 1% Yes, subject to caps specified by Crowd2Fund Crowd2Fund varies the price range you can offer loan parts for sale, based on loan performance, recent business performance and recent Equifax scores. Loans must be in good standing, have A, B or C Equifax grade, and not be launched between September 2020 and August 2021
Crowdstacker No No
Folk2Folk Sell: £250 No You have to pay the first £250 of that just to list your loan on the secondary market, i.e. regardless of whether you successfully sell
Fund Ourselves No No
HNW Lending* Sell: 1.5% Yes Completely open market: can even sell impaired loans
Invest & Fund* Sell: 0.25% No
JustUs No Yes, capped at +/-3% You can't sell loans that have run for less than one month or have one month remaining, and you can't sell loans in arrears
Kuflink* Sell: 0.25% No Available in Kuflink's Self-Select account only (not its automated accounts)
LandlordInvest Sell: 0.5% Yes, discount only, capped at -20% You can't sell loans that have just one month remaining or that are in arrears
Lendwise* Sell: 1% No You can't sell loans in arrears or that have defaulted
Madiston LendLoanInvest Sell:  1.5% Yes
Money & Co. Sell: 0.25% Yes
Proplend* Sell: 0.5% Yes
rebuildingsociety* Sell: 0.5% Yes, capped at +/-5% You can sell loans that are late (but not easy with a -5% cap)
Relendex No Yes
Somo* No Yes, discount only
Unbolted Sell: “up to” 0.5% No

Peer-to-peer lending secondary markets for quick entry/exit only

Some secondary markets really only exist to be a way to exit your loans early or to start lending swiftly without waiting for new loan auctions to close. Sometimes you don't even really see they exist; you just see that one minute you're lending and the next minute – after you clicked a few buttons to sell loan parts – you're not. It all happens automatically behind the scenes.

These markets are not to make a profit. The advantage of them is that they are dead simple to use.

While they are very simple to use, these secondary markets don't let you choose either the price you sell at, nor can you choose the specific borrowers or loans you want to sell. You just state the amount you want to sell and wait for new lenders to be allocated the loan parts.

Whereas you can specifically choose to sell, you cannot specifically choose to buy on these secondary markets. Instead, when you want to lend through one of these P2P lending sites, they will either allocate you new loan parts, secondary market loan parts, or a mix of both. You get no say in the matter.

In addition, you can't sell at a premium but you might have to receive less back.  This is to compensate the new lender in the event that they buy your loan parts paying, say, 5% interest when they would have got, say, 6% interest if they had lent their money at the latest rates to a brand new borrower.

More on how these secondary markets work under The easy-to-use secondary markets in Trading Loan Parts At A Profit Or Loss.

Here's the list of peer-to-peer lending secondary markets for quick exit or entry only:.

P2P Lending Website Fees And Adjustments
Loanpad* None with its Classic Account. 60 days' notice with its Premium Account or 1% charge.

Peer-to-peer lending sites that don't allow you to sell

  • CrowdProperty
  • Downing
  • Kuflink (It's Auto-Invest accounts don't allow sales)
  • Sourced Capital

Independent opinion: 4thWay will help you to identify your options and narrow down your choices. We suggest what you could do, but we won't tell you what to do or where to lend; the decision is yours. We are responsible for the accuracy and quality of the information we provide, but not for any decision you make based on it. The material is for general information and education purposes only.

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