Show me the money! Lendy to prioritise investors who fund loans faster
LENDY has announced an upcoming move to a “cash preferencing” model that will prioritise loans that have been fully funded faster to keep up with demand.
The peer-to-peer property platform, which allows investors to pre-fund loans before launch to guarantee an allocation, says priority will be given to those who have fully credited their account.
The platform also said investors will need to fund selected loans within 24 rather than 48 hours.
“To create a fairer and more transparent method of allocating loan parts for over-subscribed loans, we’ll soon be moving to a ‘cash preferencing’ investment model,” Lendy said in a note to investors last Friday.
“This will give priority to those investors who have pledged and credited their account after pre-funding, and provide them with quicker access to their selected loans.
“These changes are part of our ongoing commitment to improving the platform, and enabling all investors the best possible access to their chosen investments.”
It comes after Lendy introduced variable pre-funding last year, enabling investors to set separate pre-funding levels for new pipeline loan rates between seven per cent and 12 per cent.
Meanwhile, Lendy is still weighing up offering an auto-lending product on its platform after almost half of investors supported the idea.
The firm surveyed users last November about the introduction of two auto-lending products to complement its existing manual lending proposition.
Read more: Lendy makes changes to satiate City watchdog
