Lendy launches variable pre-funding

The peer-to-peer platform has launched the new variable pre-funding product to give investors more choice in the way that they pre-fund different loans.

Pre-funding allows investors to guarantee an allocation in each loan they choose to invest in from the Lendy pipeline, which are upcoming projects that are undergoing assessment and valuation. 

Investors can choose a default investment amount to cover every new loan or choose an investment amount for each specific loan. The pre-funding amount is the maximum that will automatically be invested.

However, variable pre-funding will let investors set separate pre-funding levels for new pipeline loan rates.

“It’s also useful for us [Lendy], as it gives us a good indication of where investor appetite lies,” Lendy told Bridging & Commercial. 

“It’s only just been introduced, so the plan is to evaluate its impact on the way new loans fill over coming months.”

Lendy also revealed that from 1st September it will be introducing a new process on its secondary market whereby portions of unfunded loans will be put up for sale before lenders can sell their loan parts. 

“Currently, when a new loan is not fully funded, the ‘unsold’ loan parts are placed for sale on the secondary market at the same time as other portions.

“But now the unsold loan parts will now be put on the market first. 

“To adhere to our regulatory responsibilities in not providing credit to cover shortfalls, Lendy will be introducing a new process, whereby unfunded loan availability will appear above loans parts that have been put up for sale by investors. 

“This is to ensure loans are completely funded, prior to sales occurring.”

Lendy recently attracted almost £2m of new investment following its sponsorship of Cowes Week.