How to buy investments on the secondary market

Our secondary market enables existing FOLK2FOLK investors to buy into already-funded loans listed for sale by other investors. It offers a way to access live investments without waiting for new loan opportunities.

There’s no bidding, discounting, or auctioning. You simply choose from available listings and invest at the face value of the loan.

Benefits of a secondary market loan investment:

• Proven borrower:
  • When you buy a secondary market investment you know about the borrower’s track record of payments.
  • Impaired loans cannot be sold via the secondary market, so you know the loan is in good stead at the point of listing.
• Often shorter term: when you buy a secondary market investment you are only investing for the remainder of the term. This can sometimes mean they are of shorter duration than our primary market investments.
• No delay: when you commit to buy a secondary market investment the timeframe to start earning interest is usually faster than when you invest in a new loan.

Step-by-Step: Buying on the secondary market

1. Become an Approved Investor
   Only investors who have registered with us and passed the necessary checks (including the Appropriateness Test and Client Categorisation) can access our investment platform.
2. Log In to your Investor Portal
   Once approved, log in to your secure investor account to view available investment opportunities, including those listed on the secondary market.
3. Review Available Listings
   The secondary market section displays live loans being sold by current investors. You’ll see key information including the loan amount, rate, term remaining, and security details.
4. Make Your Selection
   Choose the investment(s) you wish to buy. You must meet the minimum investment requirement of £20,000.
5. Confirm and Transfer Funds
   Complete the transaction via the platform. Once funds have transferred, the loan investment will be transferred to you.
6. Start Receiving Interest
   Once the transaction is complete, you’ll begin receiving monthly interest payments based on the remaining term and original rate of the loan.

Things to consider

• No Price Variation: All investments are listed at face value, there are no discounts or premiums.
• Minimum Investment: Each loan investment must meet our £20,000 minimum.
• No Guarantee of Availability: The secondary market depends on other investors choosing to sell, availability of listings is unpredictable.
• Due Diligence: Although the loan is already in progress, we encourage all investors to review the available information to ensure the opportunity aligns with their preferences.