Transfer Bids

Kylie Greeff
4th September 2017

Transfer Bids are a feature unique to, created to make lending to returning businesses easier and more efficient for lenders who wish to continue to support a borrower.

What are Transfer Bids and how do I use them?

After the first six months of repayments, an existing borrower may apply to re-finance. If one of the businesses you have lent to reapplies, you may re-lend the capital they owe you in the new loan auction. We call this a Transfer Bid because you are “transferring the capital owing from the old loan onto the new loan.” This allows you to bid without having to add more funds to your account. Of course, you can always bid your available funds as normal.

So, say you have £100 outstanding on A Company Ltd, this would be shown on your Dashboard, in the ‘My Loans’ tab. If A Company Ltd refinance their loan, you may transfer your £100 (or your amount to the nearest £10) to the new listing. When the loan completes, Transfer Bids are converted to ordinary bids.

TRansfer bids button

You can choose how much you would like to transfer in Transfer Bids, in what denominations, and at what rate.
Then when A Company Ltd’s first loan is redeemed on completion of their second listing, you will be repaid any capital outstanding and any interest due to you at the time of redemption. The value of your transfer bids (plus normal bids) are then taken from your balance and loaned to the borrower.

Transfer bids 2

Transfer Bids may not attract lender incentives on that loan. However, if you bid in addition to your transfer bids, these will go towards any lender incentive you may be eligible for.

Don’t want to transfer your capital to the new loan?

If you do not want to transfer your existing capital to the new loan, then you can simply do nothing. You will be repaid your capital and interest due as normal when the loan is refinanced, which is usually when the latest loan auction completes and is accepted. If the funding round is unsuccessful, then the business is still bound by its original loan agreement and will still be obliged to make repayments to you as before.

Thank you
Your Bid's been