Buy and Sell Microloans

On the Secondary Marketplace, lenders can buy or sell individual microloans (loan parts). Demand for microloans varies from loan to loan. Performing loans are normally popular, trade with a premium and may sell quickly, whereas loans with arrears may be unpopular or trade infrequently, often at a discount. There is no guarantee that you will be able to sell microloans.

Sellers may influence demand by charging a premium or discount on the capital outstanding by up to +15% or –15%; this is reflected on your dashboard as a ‘Microloan gain/loss’. On the loan profiles, in the Microloans tab, you can see a ‘Buyer Rate’, which indicates the effective buyer interest rate pa (after applying the discount or premium) that is realised, assuming the loan performs to the end of its term.

Everyone likes a deal, but please beware of significantly discounted loans. These may be at higher risk of becoming non-performing loans. Check to see if they have recently missed a repayment. Remember your Capital is at Risk. No FSCS Protection.

Tips for New P2P Lenders

  • You can sort each column by clicking its title. Click the filter icon to narrow down the list of microloans for sale
  • Loan profiles are prepared at the time the loan is arranged, so the information can be outdated; please read the Loan Updates, Discussion, and Repayment tabs before buying any microloans
  • Some microloans have a BuyBack Guarantee. Find out more about the BuyBack Guarantee
  • Use the BuyPal feature to auto-invest your funds into microloans which match your criteria as they become available
  • Borrowers may redeem their loan early (by repaying all the capital outstanding plus one month of interest). When this happens, future interest payments are foregone, so the cost of paying a premium may not always be recovered by future interest payments
  • Rounding of non-displayed decimals may result in paying slightly more, or less, than the visible amounts