Ablrate Month’s Review 03/11/2017
This month saw our lenders complete £2 million in business, which is a good month and at a level we aim to increase on in the coming months.
There were a couple of challenges also:
Loans filling quickly – while loans filling quickly is kind of the point of our business what we have listened to, and what we have been concerned to solve, is the time to read the loan documents. Usually it’s not an issue as loans fill in a few days, but with popular loans they can fill in minutes.
Being able to read the documents and make an informed decision is something we encourage all lenders to do. It is the fundamental point of publishing the due diligence we have done and documents that are produced by us and the borrower.
We are in the process of coding an update that will allow us to set a period where loans will be live but bids cannot be made. This will give lenders the opportunity to read all documents, and send funds if not on the account.
We are also coding in the option to have bid limits for a certain period of time. This won’t be on every loan, but will be deployed on smaller loans. We will be testing its impact on our community and tweaking it should that be necessary.
Secondary Market – We closed the market for a few days this month due to some data errors but managed to fix these quite quickly.
We hit £10 million in total trades on the Secondary Market and we are rapidly heading towards £11 million. We are working on improving the market further by changing how trades are reported in your financial history. Some of the data can be a little confusing so we are working hard to make these much better and have the framework completed.
Origination of Loans
We have increased the loan origination by 139% over the last quarter. This is set to increase with a plan to issue at least £2 million per month consistently by the first quarter of 2018.
We are adding new products which will allow you lend, essentially on an auto-matched basis in specific projects where all the funds are not required at once. This function will also be used to launch diversified accounts with flexible access. This will allow lenders to reduce cash drag on funds on account and get diversification while still being able to have flexible access to funds.
I look forward to updating you next month.