CrowdProperty trials bid limits to balance loan demand
CROWDPROPERTY is considering how often to use bid limits on its projects after trialling a £5,000 investment cap on a project this week.
The peer-to-peer property lender said it has received a lot of feedback about introducing bid limits so investors don’t miss out on projects as most are fully funded within minutes.
Mike Bristow (pictured), chief executive of CrowdProperty, said the platform’s previous five projects funded in under five minutes, with one getting full in 53 seconds.
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The lender trialled a £5,000 pledge limit for a project this week and it was funded in 15 minutes and 43 seconds by 175 people, while previous opportunities have had between 40 and 80 backers each.
Bristow said this showed the demand on the platform and how useful bid limits could be but he said there were other tools that would help with demand such as launching more projects.
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“This is s a great problem to have and shows the strength of our brand,” he said.
“Our applications are up hugely in the past six months and that is volume we can put on the platform.
“We are not going to have bid limits permanently but it is one mechanism to balance the marketplace.
“We are still thinking about the results from the trial.”