Peer2Peer Finance News
The UK's first peer-to-peer finance magazine for investors and the industry
  • Home
  • News
    • Personal Finance News
    • Industry News
    • SME News
    • Global News
  • Property
  • IFISA
    • IFISA Guide
  • Video
  • Open Banking
  • Cryptocurrency
  • Features
    • Joint Ventures and Promoted Content
  • Comment & Analysis
  • What is P2P?
  • Partners
  • Events
    • Past Events
  • P2P Power 50
    • Power 50 2020
    • Power 50 2019
    • Power 50 2018
    • Power 50 2017
  • Sign up to our e-newsletters
  • Magazine
  • Directory
  • Jobs
  • My Account
    • Manage Account
    • Change Password
    • Log In
    • Log Out
shutterstock_1329696740
December 2 2019

Funding Circle goes live with secondary market changes

Marc Shoffman Industry News, News 4th Way, Funding Circle, secondary market

FUNDING Circle’s changes to its secondary market are set to go live today, including the introduction of a seller’s fee.

Investors looking to sell loans will now have to pay a 1.25 per cent transfer fee which will be deducted from their proceeds and go to the buyer of the loan part.

Rather than operating on a first-come, first-served basis, the new tool will cycle through all investors wishing to sell loan parts as many times as possible within a 120-day period.

The peer-to-peer business lender said this would allow investors to get their funds back quicker.

The change comes after the average resale time for loan parts rose to 124 days in October.

“The new tool will cycle through all investors wishing to sell loan parts as many times as possible within a 120-day period,” Funding Circle said in a blog post on its website. “This will mean investors start to receive money back more regularly from the loan parts that have sold.”

The changes mean that Funding Circle investors who have been waiting to sell their loan parts for the longest amount of time will be put on a level playing field with all other sellers on the secondary market.

All of the ‘big three’ P2P lenders now charge a fee to sell loans.

Zopa charges a one per cent fee on its Core and Plus account while RateSetter investors must pay 30 days of interest to withdraw from the Plus account and 90 days in Max.

There is no fee to sell investments from RateSetter’s Access account.

Analysis of 42 P2P lending platforms by P2P analysis and ratings firm 4th Way says that 18 firms always charge a fee, 14 never charge, five do sometimes and another five won’t let you sell at all.

Read more: Government leaves secondary market concerns to the FCA

Growth Street to review IFISA marketing amid mini-bond changes Zopa close to securing capital to launch bank

Related Posts

Businessman separates the wooden puzzle with a picture of money. The concept of financial management and distribution of funds. Saving and investing. Property division. Legal services.

Industry News, News, Property, Top 3

50pc of the Octopus Choice portfolio has already been realised

Andrew Bailey

Industry News, News, Top 3

BoE’s independent directors back Bailey over LCF collapse

Rhydian_Lewis5122_RateSetterLogo

Industry News, News, Top 3

RateSetter confident of growing Metro Bank’s unsecured lending

Popular posts:

  • Funding Circle strikes another CBILS securitisation
  • How the government distorted the P2P market
  • RateSetter to stop investment withdrawals from 26 March
  • FCA puts the brakes on Buy2Let Cars
  • Assetz promises a return to manual lending within months
  • How to invest in an IFISA with £100 or less
Back To Top
  • Home
  • Contact
  • About
  • Team
  • Advertising
  • Subscribe
  • Privacy
  • T&Cs
  • Disclaimer

Follow Us on Social Media

© Peer2Peer Finance News 2020
• Additional design by