June 2019 Update – Extra customisation options have been made available to Auto-Lenders to enable them to personalise their allocation settings. In addition to option to choose which of our markets to allocate available cash to, they can also set a monetary maximum investment per loan and change the maximum loan term.
With a target return of 5% after fees*, Proplend’s new Auto-Lend facility takes the time and effort out of choosing loans, making the investment process quicker and easier.
‘Lenders’ participating on Proplend’s Peer to Peer (commercial) property lending platform can now enable an automated investing option that allocates their available cash to eligible loan parts – taking the hassle and involvement out of P2P lending.
Immediately available to new and existing Lenders, Auto-Lend can be simply ‘toggled’ on and off via account dashboards to switch between the manual select (default) and new automated option. The facility may be particularly useful for those who don’t have the time, availability, or perhaps don’t feel comfortable manually selecting their own P2P investments.
And the new facility will limit participants capital risk exposure too – allocating only to Proplend’s safest Tranche A investments (less than 50% loan to value of the securing commercial property). 4thWay currently rank these investments 2nd in their P2P lending comparison tables, describing the top-rated loans as; “astoundingly attractive for the risks involved”.
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Tranche A only for In Funding and PLE loans of up to three years
Classic account or ISA Lenders with the facility enabled will have priority for Tranche A investments in new loans with terms of up to three years. Auto-Lend will run daily for both Proplend’s, primary ‘In Funding’ market and secondary loan exchange.
Once enabled, the facility will continue to automatically invest all current and future available cash from new deposits, transfers, accumulated income and capital repayments until disabled.
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How Auto-Lend will work for new and existing Lenders
New accounts enabling the facility from outset will see their initial deposit or ISA transfer in, split between at least five loans, subject to the platform’s current £1,000 minimum investment and eligible loan availability. And Lenders funding their accounts with less than £5,000 will still be able to use the facility with each £1,000 available being allocated to a different loan.
When enabled with loan holdings already in place, Auto-Lend will factor in the combined value of the account portfolio plus available cash, to ensure it’s not auto-investing more than 20% of the total value to a single loan. It will not re-allocate any existing holdings.
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More choice, more Lenders invested, earning returns more quickly
Proplend Founder and CEO Brian Bartaby commented: We’re delighted to bring the Auto-Lend facility to the platform to give our Lenders more investment choice. We already offer a range of account types and Tranche investments, so it’s a natural next step to give our current and prospective Lenders the option of more passive, automated investing. It’s entirely up to them”
Mr Bartaby added: “Our token-based queuing system means more Lenders will get a bite of the cherry. Available cash in Auto-Lend enabled accounts will be allocated in turn, £1,000 per account at a time – so larger accounts won’t swallow-up large chunks of loans before all Lenders have been able to invest. It should result in more Lenders, invested in more loans, more quickly.”
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Should the new facility prove popular amongst new and existing Lenders, Proplend may look to widen its availability, as well as adding some additional customisation options.
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Want to find out more about Proplend’s new Tranche A ‘Auto-Lend’ facility?
Automated ‘passive’ option – Target 5% return after fees – Runs daily for In Funding and PLE loans – No manual investment or sale while enabled – 20% per loan limit – Enable/disable any time via dashboard More about Auto-Lend.
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