JUSTUS is making buying and selling loans on its secondary market easier by splitting them into smaller slices for investors.
The Cheshire-based peer-to-peer lender, which received Financial Conduct Authority approval last September, has added functionality to its platform to turn new loans into 100 micro-slices.
Investors using both the auto and manual-bid options can turn their loans into tradeable slices, which are subject to the platform’s standard terms and conditions.
“We anticipate lenders will feel more comfortable lending larger amounts to borrowers now they have the added comfort that if they need to cash out, the smaller loan slices are naturally more liquid,” said JustUs founder and chief executive Lee Birkett.
“To maintain and improve the JustUs platform liquidity, we have developed the functionality.”
JustUs, which opened its first Innovative Finance ISA (IFISA) accounts last November, says that a liquid secondary loan market is validation of a P2P platform’s integrity.
“We are proud to have continually matched willing sellers with active buyers since launch and micro-loans are usually traded on the secondary market the same day,” said Birkett.
“We only expect delays when larger micro-loans are put up for sale, for example we have a number of single micro-loans live on the platform for £25,000.
“Most lenders will need to deposit cash to acquire loans of this size, whereby micro-loans in the £100s are highly liquid and acquired with lenders dormant cash held on account immediately.”