Not a lender yet? Here’s what you need to know
Have you been flirting with peer-to-peer for a while but never quite gathered the strength to take the plunge? Here’s the answers to 5 important questions for those lenders-to-be who are yet to dip their toes in peer-to-peer lending:
1. Where is my money held when I open an account and lend with Blend Network?
When lenders open an account with Blend and transfer money into their account, the money is actually never sent to Blend, it is sent to a segregated client bank account at Barclays. This ensures that before a loan is made, lender’s funds on the platform are held in a designated client bank account and hence not exposed to Blend’s credit risk.
2. What is the best way to dip my toes?
There are three key rules that we think new lenders should consider when lending with peer-to-peer: doing their own research before lending, starting small and diversifying. At Blend, lenders can lend from a minimum of £1,000 on each loan, so new lenders should consider starting with small amounts and lending across several loans to diversify.
3. What if I need my money before the loan expires?
At Blend we have thought of everything: our secondary market allows lenders to try to sell their loan (or part of it) whenever they want. So far, all lenders who have offered their loans for sale at par in the Blend secondary market have been able to successfully sell their loans.
4. What are the fees when I lend with Blend Network?
None. There are no fees to lend with Blend, what lenders see is what lenders get. There is only a 0.6% fee when lenders sell their loan in the secondary market, so that’s £6 on every £1,000 loan.
5. How do I get my money back?
Our systems are fully automated. As soon as the borrower repays the loan (which is normally at expiry but can also often be earlier if the borrower makes an early repayment), lenders’ money gets automatically repaid into their Blend account. Lenders can then choose one of two options; they can either take their money and transfer it into their own personal account, or they can leave the money in their Blend account and continue lending on new loans.
Check out our available loans at http://www.blendnetwork.com and start lending now #LendWithBlend