LENDING Works is raising its minimum investment from £10 to £100.
The peer-to-peer consumer lender has written to investors to say the increase – taking place from 5 March – will make it easier for the platform to cope with the level of transactions.
Currently, Lending Works spreads investments in minimum chunks of £1, but said this needs to be increased due to the increased number of users.
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“Right now, our minimum chunk is £1,” Lending Works said.
“This worked really well when we were starting out; however, as the number of users on our platform continues to grow, we need to make changes behind the scenes to streamline the millions of transactions taking place.
“Increasing the minimum chunk size to £10 would significantly decrease strain on back-end resource by dramatically reducing the amount of potential transactions.
“This also allows for faster processing of dashboard actions such as quick withdrawals.”
Lending Works said that while the majority of users invest a minimum of £1,000, the change may affect those whose account value remains below £1,000.
If investors have chosen to reinvest repayments received on their loans, they will need to wait until these reach £10 in aggregate before they can be reinvested into a new loan, Lending Works said.
“For this reason, we recommend investors lend at least £1,000 to get the most out of the Lending Works experience,” the note added.
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