The Loan Originator model
Marketplace lending operates differently from direct peer-to-peer lending: Loan Originators source borrowers, underwrite the loans, and assume responsibility for them. Investors fund the Loan Originator’s lending activity rather than individual borrowers, and typically see only originator-level information rather than individual borrower details.
Runs alongside P2P, not instead of it
This model is supported as a distinct mode on the same platform as direct peer-to-peer lending, so you’re not choosing between the two at the infrastructure level. Both can run side by side, or you can launch with just one.
Originator onboarding and oversight
Loan Originators are onboarded and approved before they can source loans on your platform, with underwriting responsibility and risk sitting with the originator rather than the investor.
Buyback guarantees, configured per originator
Loans can be backed by a buyback guarantee: the originator commits to repurchasing a loan, principal plus accrued interest, once it falls a set number of days past due. This is a configurable term per Loan Originator, not a fixed, one-size-fits-all rule.
Auto-invest for hands-off allocation
Investors rarely want to pick every loan by hand. The platform’s auto-invest engine lets them set criteria once - originator, loan type, term, rate - and allocates funds automatically across every Loan Originator that matches, rather than betting on a single one.
Liquidity through secondary markets
Funding a Loan Originator’s activity doesn’t mean waiting out every underlying loan. Secondary market functionality lets investors exit existing positions early, which sits alongside buyback guarantees as a second lever for balancing risk against liquidity.