IFISA
Enjoy tax free gains with our IFISA
Enjoy tax free gains with our IFISA
Loan exchange
If you are going to get into an investment, it is wise to have a plan to get out. Providing there are willing sellers and willing buyers, the Ablrate Loan Exchange allows you to buy and sell loans between other registered members of our community. Historically over £50 million has been bought and sold on the Loan Exchange, but this is no guarantee that those results will be reproduced in the future
What is our Loan Exchange?
Our Loan Exchange is a state-of-the-art technology allowing you to buy and sell loans with other members of our community. We feel it is important for lenders to know that they can get out of their investment if they need to.
Our Loan Exchange makes this option a reality, as long as there are buyers willing to purchase your loans you will be able to exit your investment. The Loan Exchange executes trades of circa. £700,000 per month between lenders. While we are working on bringing more liquidity to the Loan Exchange, please be aware that there is no guarantee that there will be a market for your loan on the Loan Exchange and you may have to keep your loans to the end of the term.
Buying and selling through the Loan Exchange
You can buy loans on the Loan Exchange to diversify across a number of loans, or to reinvest your interest and capital that is repaid to you each month. The Loan Exchange platform is available on mobile as well as desktop so you can manage your loans on the go.
How it works
Registering for an account is a simple process managed electronically. Once you have registered and passed our appropriateness test you are also given access to our Loan Exchange where you can invest whenever you are ready.
Review loans available on our Loan Exchange system. You can even use our handy filter system to find loans you like
You can immediately buy loans that are on offer from other lenders or you could create your own bid for a loan at a price you choose.
Our system generates a cost including capital cost, accrued interest and any transaction fee
Execute the trade - the system takes care of the rest
Frequently asked questions
What are the risks of lending?
Treating customers fairly is not just a regulatory obligation, it is at the core of our philosophy and practices. Inherent in this is explaining the risks of investing in loans requested by borrowers on our platform. We urge you to read the risk warnings below and consider these risks before making any commitment. Your capital is at risk and any potential interest payments are also at risk should a loan default. RISK FACTORS AN INVESTMENT IN LOANS ON ANY PEER LENDING PLATFORM IS SPECULATIVE AND INVOLVES RISK. EVEN LOANS THAT ARE BACKED BY ASSETS, SUCH AS THOSE ON ABLRATE, HAVE A POTENTIAL FOR DEFAULT WHERE A LENDER COULD LOSE ALL OF THE FUNDS INVESTED. ACCORDINGLY, PROSPECTIVE INVESTORS SHOULD CONSIDER THE FOLLOWING RISK FACTORS. THESE RISK FACTORS MAY NOT BE A COMPLETE LIST OF ALL RISK FACTORS ASSOCIATED WITH A LOAN VIA ABLRATE. Investing in loans involves a high degree of...
What is the Ablrate Loan Exchange?
Whenever you make an investment one of the main criteria is access i.e. how do you get your money out and when? Often you are locked into a product for a certain period of time and this would appear to be the case with loans. If you buy into a three year loan, then you are in it for three years right? Not necessarily. Ablrate’s unique Loan Exchange is where our community comes together to trade the loans they own or would like to own. The market runs on a ‘bid and offer’ system much like stock and bond markets where people can offer loans they have for sale at a certain price and people can also make bids to buy loans at a certain price. The process is automated, so if you like the look of a loan, and it is being offered at a price you are comfortable...
What is a bid and offer price?
The Bid Price and the Offer Price are the prices at which people are willing to transact. Think of a bid as a wanted advert (i.e someone would like to buy your loan) and an offer is a for sale advert (i.e someone is willing to sell their loans) The price is the percentage amount that someone is willing to pay for the remaining capital on a loan. So, if a price on our Loan Exchange is 101.50%, it means that a lending member is willing to pay £101.50 for every £100 of capital that remains to be repaid. On other platforms, this would be called “a 1.5% premium”. Similarly, if a price was 98.00%, it means that they are only willing to pay £98 for every £100 of remaining capital, “a 2% discount”.
Do loans that have been offered on the Loan Exchange still receive interest?
Yes. You retain ownership until a trade completes on the Loan Exchange and as a result, you will receive scheduled interest payments until ownership transfers. When a loan is purchased from you, you will receive the accrued interest due on that loan for the period you have held it. When you hold a loan interest accrues on a daily basis calculated on our platform. This allows us to charge the incoming buyer of your loan 'accrued interest' so that you keep all of the interest you should have earned for the time you have held the loan. For example, if you are due £10 in interest at the end of the month and you sell your loan half way through the month, you will receive the capital the buyer pays for your loan and £5 in accrued interest. The buyer will get the full £10 at the end of the month which...
