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|The Bidding Market||
How it works…
Why use the Bidding Market?
Who can use the Bidding Market?
Borrower, Lender & Advanced Lender Memberships
How it works…
Why use AutoLend?
Who can use AutoLend?
Advanced Lender Memberships
This is "people power" at its purest! Remember: your capital may be at risk when lending.
To help you decide how much you’d like to borrow, over what period and at what interest rate, we have included a Quick Loan Calculator, which enables you to explore costs and monthly repayments.
Then the first step is to Register and choose your free membership:
When you are logged in and have chosen your memberships, use the Loan Calculator (from the menu on the left) to check you are happy with the amount you are borrowing, costs and repayment levels.
Complete the Existing Loans, Monthly Income and Expenses details. Do check that you saved your changes and checked the final loan numbers (click Calculate to update). Finish the form by adding details of the loan itself and create your loan request.
We then do all the ID verification and credit referencing. Remember, only credit worthy borrowers are accepted.
As lenders bid (manually or automatically) on your Loan Request, the interest rate will begin to drop. The more lenders competing, the lower the interest rate is likely to fall. You can monitor this activity on your Borrowing Account and you will receive emails confirming the progress on your Loan Request.
When sufficient lenders have made offers to fulfil your loan, you will be asked if you would like to accept. If your Loan Request listing has longer to run, you may choose to wait to see if lenders continue to compete to reduce the interest rates further. Either way, at the end of the listing period, you will be asked to Accept or Decline the loan. If you accept, your loan is paid over to you and our fees are deducted. Your repayments will be collected each month by Direct Debit.
He is prepared to pay a nominal interest rate of 7.5% and repay the loan over 3 years.
The borrower loan fee of £115 (£70 flat fee + 1% of the loan amount) and the compensation fund contribution of £45 are deducted from the loan when it's paid out, so he actually receives £4,340.00. The returnable contribution to the compensation scheme fund, in this case, is 1% of the amount of the loan, or £45, but it varies with the credit rating of the borrower.
Dave pays back the loan with interest in 36 equal monthly instalments of £139.98 each month, a total of £5,039.28.
Having made the final repayment he gets his compensation fund contribution of £45 back!
Dave's loan APR is 9.85% (including the effect of the compensation fund contribution).
then register now and create your loan request.
This is the place for borrowing if you have a good credit rating. It's quick & easy & it is people power at its best!
Peer to Peer Lending, for Creditworthy Borrowers
To help you decide how much you’d like to lend, over what period and at what interest rate, we have included a Lending Calculator, which enables you to explore the return on your money that you could achieve.
How would you like to lend your money? Would you prefer to select individual loans yourself or would you prefer to use our automated matching facility - AutoLend?
We do all the ID verification and credit referencing for you so only credit-worthy borrowers are approved.
To get started, register and choose which type of membership you’d like:
Then deposit the money you wish to lend into the our segregated Client Money Bank account. In such an account, deposits belong to you, the depositors, not us, and are covered by the Financial Services Compensation Scheme.
You’re ready to start lending…
To lend on the Bidding Market, select View Loan Requests from the Lending Menu and decide which loans you’d like to support. Feel free to ask the borrower questions if you’d like more information. The Lending Offers tab on each Loan Request shows you all the offers placed to date and the interest rates they’ve offered. At the bottom of that tab you can enter your own bid by entering how much you’d like to lend and at what rate of interest.
To lend on the Matching Market, you can create up to five lending portfolios in our Autolend automated matching facility, each with different parameters to determine how your money is to be lent out.
You may wish to use ARBU (Automated Response to Bumped-off Underbid!) so if you get “bumped-off” a Loan Request because other lenders have offered a lower interest rate, your ARBU settings will respond automatically (according to the rules you’ve set) to keep you in the running.
So whether you opt for the manual method or the automated option, your money will be matched with credit worthy borrowers.
a) Interest rate minimum of 7.0%
b) credit score minimum of 5 stars (approximates to A* and A, on the A*, A, B, C, D scale - we only accept A*, A and B borrowers)
c) maximum exposure to any one borrower of 2% of her money, which is £90.
AutoLend does the work and eventually she has lent out all her money to 51 borrowers at interest rates from 7.0% to 8.9% averaging 7.5%.
Emma's up front flat rate loan fee was £5.10, 10p per loan slice.
Her monthly loan fee will be £3.75 (it would have been only £2.25 without the optional compensation scheme).
She is receiving just short of £140 per month net return (varies slightly month by month) and will receive, in total, £4,962.31
Emma's lending AER is 6.62%, including her compensation fund costs.
If you ...
then Register to start lending.
Remember: your capital may be at risk and your money is not covered by the Financial Services Compensation Scheme whilst lent out.
Just a note to express my gratitude to all at Madiston for the excellent service you provide to Lenders on the LendLoanInvest website. David from Tunbridge Wells (lender)
Peer to Peer Lending, new opportunities for investors
This section highlights some of the features that make this one of the most functional social lending and borrowing websites available:
Similarly Lender membership covers the costs of the necessary ID verifications & anti money laundering compliance checks.
These memberships enable us to introduce incentives and benefits targeted to the different groups.
How it Works is a quick guide;
FAQs, Guidelines and Glossary provide greater detail, full of hints and tips.
Tooltips everywhere! Even when you get started, wherever you need to enter information, just hover the curser over the label or entry box and an explanatory tooltip will appear to guide you!
"Live Help" is also available during office hours.
Lenders can find out the return they will generate from their lending using the Lending Calculator
Bid Amount & Interest Rate, and submit. You will receive email confirmations
Up to five lending portfolios are available to specify different lending requirements.
An AutoLend portfolio can lend in either market, Bidding, Matching or both.
ARBU – Automated Response to Bumped-off Underbids. This tool enables lenders to set parameters for automatic new bids. So, if you get “bumped-off” a Loan Request because other lenders have offered a lower interest rate than you, ARBU will respond automatically (according to the rules you’ve set) to keep you in the running.
Borrowers' repayments are always made by Direct Debit.
The deposits & withdrawals links are to be found in the User Menu.
Transactions are made between the Client Money segregated bank account and the user's nominated bank account. Money shown as held in a lender's "Holding Account" is, in fact, in the Client Money segregated bank account which, of course, is covered by the Financial Services Compensation Scheme (the "FSCS"). We will also pass on the benefit of any interest earned in this account to users pro rata. Unfortunately this is currently minimal!
OUR QUEST IS TO: