Secondary market
How our secondary market works
FOLK2FOLK’s secondary market offers potential flexibility for investors, enabling them to list investments for sale before they reach term, or buy investments from other FOLK2FOLK investors. It’s a feature many investors value, particularly given the typically illiquid nature of peer-to-peer lending. Impaired loans cannot be listed for sale.
Whether you’re looking to exit an investment before the end of its term or diversify by accessing opportunities already in progress, our secondary market provides a simple, fixed-price platform to facilitate this.
Why Investors Use It
- Early Exit – Sell all or part of your investment if you no longer wish to hold it to term.
- Diversify Holdings – Buy into loans that are already live, often with shorter remaining terms.
- Borrower Track Record – by buying into a loan that’s in train, you benefit from having knowledge of the borrower’s proven payment record
- Manage Cash Flow – Use the market to rebalance or realign your portfolio.
How It Works at FOLK2FOLK
- Fixed Price:
Investments are sold at par (face value), there’s no bidding or discounting. - Platform Fees:
- No fees for buying via the secondary market
- Fixed fee of £250 to list an investment on the secondary market regardless of whether it sells
- Immediate Listing:
Loans appear on the secondary market platform as soon as existing investors list them. - No guarantee of a sale:
Sales rely on another investor choosing to purchase. There’s no guarantee of a sale or timeframe. - Security Remains Intact:
All loans remain property-backed with a first legal charge, regardless of transfer.
Important Things to Note
Only current FOLK2FOLK investors can buy or sell on the secondary market.
Interest continues to accrue to the current investor up to the date of sale.
Purchases must meet the minimum investment threshold (usually £20,000).
