Lendwise, an FCA-authorised Peer-to-Peer (P2P) lender pairing lenders with borrowers seeking to fund postgraduate or professional qualifications studies, today announces the introduction of a secondary marketplace to its platform, giving investors the option to achieve liquidity earlier than the maturity date of their loan.
The London-based platform’s typical investments have an average maturity of five years, with some loans having a term of up to ten years. At present, investors need to wait for their loans to reach maturity before the initial capital investment (together with interest) is returned in full. The principle purpose of the secondary marketplace is to give investors access to their investment at an earlier stage.
It will allow investors, who are currently achieving estimated returns of up to 8% a year on average, to sell either all or part of their investments to other lenders on the Lendwise platform. Lenders and borrowers can currently invest or apply for a loan via the Lendwise platform online, and the secondary marketplace will be incorporated into the existing website.
Rishi Zaveri, Co-Founder and CEO of Lendwise, said:
“Introducing a secondary marketplace is just the latest development in the ongoing evolution of the Lendwise platform. Long-term, we aspire to keep bringing the newest ideas and innovations to our customers, but we already believe Lendwise comprises all the vital functions you would expect from a leading peer-to-peer lender.”
“We are passionate about being able to help young professionals and graduates achieve their goals, but of course, at the heart of Lendwise is its investors, without whom we would not be able to provide that opportunity. Giving them the option to attain liquidity as early as possible is something we’re thrilled to be able to offer going forward.”