Lendy sees growing number of investors not honouring pre-fund pledges
LENDY may re-evaluate its new “cash preferencing” model, if it fails to curb the growing number of investors not honouring their pre-fund pledges.
The peer-to-peer property platform recently unveiled plans to move to the new model, in order to prioritise loans that are fully funded faster.
Lendy, which allows investors to pre-fund loans before launch to guarantee an allocation, said that 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.
“While the majority of investors fund their accounts in a timely manner, we have seen a growing number of investors not honouring their pre-fund selections, which impacts all investors,” Lendy said in an email to its customers on Friday.
“As a first phase we will be writing to those investors who have repeatedly pre-funded but then fail to credit their accounts to match their agreed pledges. We hope this will encourage the majority of these investors to honour their pledges, to the benefit of all investors.
“If after a trial period we are still seeing a negative impact on the majority of investors we will re-evaluate our proposed cash preferencing policy.”
Lendy, which is the headline sponsor of sailing regatta Cowes Week, is considering introducing an auto-lending product after a survey found almost half of its investors supported the idea.
