JUSTUS has introduced borrower financial ratios as it aims to expand the toolkit that its lenders can use to make informed decisions.
The peer-to-peer property lender said that the new feature would enhance the borrower information available to its platform users.
JustUs, where applicable, will now display a ‘borrower affordability ratio’ and a ‘borrower asset and liability ratio’.
“Unlike many other lenders or P2P platforms who use a computer scorecard only to make a lending decision, we dig a little deeper into the borrower’s financial position to take a common-sense approach and present real-world opportunities,” said JustUs founder and chief executive Lee Birkett.
“We ask borrowers to complete their income and expenditure together with their assets and liabilities via the platform.
“We then use credit bureaus, electronic property valuation software and open bank data to verify the information and give a true picture.
“Credit scores alone are unfortunately rife with errors and missing information. Bank statements, together with live income and expenditure is the only real proof of affordability.”
Read more: JustUs introduces auto-buy feature
Although smaller loans are nearly always pre-funded via lenders’ auto-bid settings, the firm said it is important to give increased borrower profile information at the pipeline stage, when lenders are looking to lend larger amounts of capital to individual borrowers.
“Whilst we believe wholeheartedly in our borrower anonymity policy, we also feel it’s of great importance to provide lenders with as much information as possible to make an informed lending decision,” added Birkett.