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FundingKnight loan exchange
FundingKnight lenders purchasing microloans on the loan exchange are receiving on average an 11.4% return before bad debt. Loan parts are available from £25 to over £1000. One unique selling point with the FundingKnight loan exchange is the ability for a lender to split their loan and only sell part of it. There are also no fees for trading loans until the end of June.
Here is the full press release from FundingKnight:
Lenders could get an average gross yield of 11.4% p.a. with no fees payable based on investing £25 in each of the best-priced loans currently on offer on the FundingKnight Loan Exchange
There are over 130 loan parts on offer in the Loan Exchange, currently across eleven different loans, with unit sizes in each loan ranging from £25 to over £1,000
Early lenders on FundingKnight are getting the benefit of these rates and due to the exceptional growth of the lending community in the first quarter of 2013 FundingKnight is offering a further three-month fee-free trading on the Loan Exchange until 30th June 2013.
The Loan Exchange enables lenders start earning interest immediately. Since these loans are already live, loan parts can be instantly bought providing an instant investment. The Loan Exchange enables lenders to spread their risk across a multitude of loans and reduce exposure to any one loan failing, whilst diversifying their portfolio with exceptional rates typically from 9% to 12%.
Steve Lee, FundingKnight investor said; "I’m impressed with the way that the Loan Exchange works, letting you buy and sell loan parts.
FundingKnight allows you to split up an investment and only sell part of it on the Loan Exchange, giving you the option to state exactly how much you want to sell at any one time. In my opinion that makes it a superb solution, the best one available on any of the platforms I’ve used".
A return of 11.4% compares favourably with the likes of Funding Circle, although FundingKnight does not yet have the volume of loans of Funding Circle. Estimated bad debt rates on FundingKnight have yet to be published, but as the loans are secured on assets these figures should be comparible with ThinCats if the same level of security is obtained.