ArchOver seeks views on altering cooling off period

ArchOver is seeking investor views on whether to alter when its 14-day cooling off period starts.

Investors currently have a 14-day cooling off period that starts once they make a pledge but the peer-to-peer business lender said this can delay lending.

Instead, ArchOver is asking its users how much they value the cooling off period and is seeking views on whether it should start when investors register and accept the platform’s terms and conditions, instead of when they first invest.

ArchOver said investors have rarely used the cooling off period.

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“One issue is that it significantly delays the time it takes to draw projects down, and therefore increases the time before you begin accruing interest,” ArchOver said in a note to investors.

“Lenders are regularly asking ArchOver how this process can be expedited to avoid cash sitting idle.”

The platform said regulations allow it to start the cooling off period earlier.

“We are conscious that stripping away the 14-day cooling off period altogether, for some lenders, may not be acceptable,” the note added.

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