Policy on Opt outs and Renewals
Growing your investment
Investors who are pleased with their returns and want to continue investing in Small to Medium Enterprises (SME) may be in luck. Companies such as Marketlend offer investments into facilities (loans) that can be renewed every 12 months by the SME borrower. This renewal can sometimes be subject to a credit risk review by companies like Marketlend. Credit risk review processes such as analysing the updated financials and reviewing their recent repayment history may help determine a borrower’s ability to meet debt obligations.
If Marketlend is dissatisfied with the credit risk review outcome at the end of the 12-month period, the facility will most likely be closed. While this is a risk that comes with investing in SMEs, on the flipside, it may mitigate your risk of being “trapped” in a loan that has a high risk of losing you money rather than making you money.
Opting Out
Ready to throw in the towel?
Marketlend offers a Loan Exchange. Now for those of you wondering what that is, picture the stock market, but instead of stocks, we use loans. The Loan Exchange is a platform where investors who would like to opt out of their investment can sell their loan parts to other investors at a discount, par, or premium.
Marketlend does not sell your loan parts on the Loan Exchange, instead, it permits you to offer them to other investors by enabling a listing on the loan exchange. They cannot promise the purchase of your loan parts by other investors.
Why should you consider the Loan Exchange?
The question should really be, why shouldn’t you be using the Loan Exchange. Having this option to sell your loan parts on the Loan Exchange could be argued to be a quite a liquid investment for investors in the SME loan investing market. The benefits of the Loan Exchange include:
· Selection of loan parts that meet your criteria.
· Options to buy all loan parts or a specific number of parts (subject to availability).
· Purchase or sell loan parts at a discount, par or premium.
· View original loan details and updated commentary.
· View the status of your loan.
When can you do this?
If you invest with Marketlend, you may at any time sell or buy loan parts on the Loan Exchange. If you find it is not selling quickly, feel free to lower the price or offer it to Marketlend at a lower price, and we can see if we can help. Please be aware the borrower facilities are renewable, so they revolve unless the borrower is in default or we determine the risk is not suitable for the platform. Not an investor already? Start your investing journey here.