CROWD2FUND has released data on its secondary market that has shown that more than 33,000 loans, cumulatively worth more than £4.2m, have been sold since the platform was founded in 2014.
The average sale time is 12.4 days, sold at an average value of 0.61 per cent below the original target return. Smaller loans which are closer to the average investment amount sell more quickly, Crowd2Fund said.
The peer-to-peer business lender’s secondary market enables investors to sell their loans to other customers, subject to demand. Unlike some other platforms, Crowd2Fund allows investors to set their own sell price.
Investors can de-list and re-list loans at a different price if they do not sell. There is no seller’s fee.
Crowd2Fund revealed that 64,490 loans collectively worth more than £8.65m have been listed on its secondary market to date.
24,565 of the 33,490 sold investments were sold after being listed only once on the secondary market.
Among the 28,306 de-listed investments, 19,353 have been sold after being relisted at a different price.
The remaining 11 per cent of listed investments that have been de-listed and not subsequently sold could be because the investor has changed their mind or the loan has defaulted, Crowd2Fund said.
“It’s a really important dynamic to have a secondary market – it’s about diversification,” Crowd2Fund founder and chief executive Chris Hancock (pictured) told Peer2Peer Finance News.
“If there aren’t lots of live opportunities on the primary market, you can deploy your funds into loans in the secondary market.”
As users can set their own sell price, there is the opportunity to make a profit on sales if there is currently high demand on the primary market, Hancock added.