Turning The Tables On Rates And Fees
Marketlend does not set interest rates on monies advanced to Account Holders. Instead investors are provided an interest rate limit by Marketlend based on factors including:
- Marketlend Automated Risk Assessment
- Credit term
- Economic environment
- Competitive environment
- Applicant requirements
- Rates are paid on utilised money
There are application fees payable upon application or satisfactory completion of your new account or both. The fee is $330, payable on application and a minimum of 3.3% of the amount lent, payable on completion of an Account Holders facility. This is deducted from the Account Holders loan amount on settlement of the particular facility. These fees may be varied or waived in some circumstances.
The interest rate that is paid by the Account Holder is made up of the interest rates paid to the Investor and a platform fee paid by the Account Holder to Marketlend.
This is calculated on the basis of the provision of services including provision of the platform, managing of the receivable, cost of loss protection and other servicing costs.
Presently, the platform fee is 23% (GST exclusive) of the interest rate paid by the Account Holder. For amounts below A$100 it may not reflect a percentage of 23% due to rounding to the nearest dollar.
A utilisation fee is payable on monies that are committed to the account holder as part of the facility limit but is unused by the account holder. The utilisation fee is charged at 7% per annum (or as agreed) and on the amount that is unutilised by the Account Holder. Capital unutilised by the Account Holder in excess of A$2000 and for periods greater than 2 months may be returned to the investors of that loan.
Loss Protection Fee
The loss protection fee is 1.5% of the amount funded and is held as a reserve for any losses. Certain monies are allocated as reserve. If the loan is paid out in full, on time and no losses occur, the account holder is entitled to any monies in the loss reserve for their account to the extent that any monies are available. Please note reserves may be used to cover losses across the portfolio of accounts, not just one facility.
Default And Late Payment Fees
Default rates: a $25 failed direct debit fee is payable upon a direct debit dishonour. After the second debit dishonour, if no interest is paid, your account will be closed and enforcement action will be taken. A failed direct debit fee on the second debit dishonour of $100 is payable. All fees charged herein are used to pay Marketlend and its service providers.
Late payment fee is charged at $25 per day for the days late or 26% on the amount past the due date of the payment, whichever is greater.
Marketlend Automated Risk Assessment
Each loan application is assigned a Marketlend Risk Assessment Score– we have a proprietary system that considers the historical, future subjective and objective factors to predict the likelihood of repayment of the investment (loan) and the certainty in the predictability.
Please note we do not accept any account that is below 60% likelihood of repayment of principal and interest at the end of the term of the loan.
The proprietary risk assessment system obtains a number of factors to determine the risk of repayment. Using algorithms, the proprietary system produces an automated result as to what the risk assessment is. For more details, email us on email@example.com
Marketlend Automated Risk Assessment (Percentage refers to the likelihood of full repayment of the investment*)