Marketplace

Marketplace lending is another great FinTech advancement that is opening the door for many businesses that are not able to secure traditional methods of financing. The advancement in FinTech banks are losing their competitive advantage, opening the door for new methods of lending.

What is Marketplace lending?

Simply put Marketplace lending matches borrowers with lenders, it is a very similar process to Peer to Peer lending. Marketplaces lending uses online platforms to connect individuals and businesses to each other for financial support and investment. Once a loan has been agreed, the marketplace platform will collect payments and interest from the borrower, these will then be passed to the lender minus any fees.



What are the advantages of Marketplace lending?

There are many advantages to marketplace lending including:

  • Being easier to qualify for as marketplace lending platforms factor in other information as well as credit scoring.
  • Allowing for fast turnaround of loans, the vast majority of the transaction is online meaning data is easily available and can be processed quickly.
  • Easy to compare as all options are online making it simple for consumers to shop around and compare loans.

What are the disadvantages of Marketplace lending?

As with all methods of financing there are some disadvantages and risks:

  • In some cases, software allows for those who have previously been rejected for loans to be accepted which could result in bad debt for the platform or lender.
  • The majority of marketplace platforms require automatic payments placing the responsibility on the borrower to ensure significant funds in their account. This can lead to overdraft or late fees.
  • For some the process may be too fast and as Marketplace is a digital lending method decisions are made quickly, giving borrowers less time to consider the terms and implications of the loan.

Is Marketplace lending a good option for my business?

Marketplace lending is a good option for businesses who are not eligible for traditional methods of financing or have previously been rejected for traditional business and commercial loans. It is also a good option for businesses who require fast decisions on loan applications to resolve cash flow issues.

It is important to note that marketplace lending is not currently available in the UK, if this changes we will update this page.

How can CREDITONLINE support my business with Marketplace lending?

At CreditOnline we can offer a range of support from quick and seamless integration into your system by using a team of professionals who will make the transition effortless. Once the system is up and running we offer different types of support packages whether its in running the software, any questions that may arise on the way or any faults or errors that may appear. Our response times are lightning fast and we strive to lead in the industry.

We also offer training sessions for employees learning to navigate the system and a wide selection of modules that can be implemented for ease of use.

Our modular software allows itself to be moved around and fitted exactly to your company needs. Whether it's API integration or a simple change in the administration menu. We’ve got you covered!

Our system boasts of secondary market capabilities. When a client invests in a project he will have the ability to get his investment back sooner by using our simple or advanced secondary markets.
When accessing the secondary market, clients will have the option to sell their current investments for less than the market value getting their money back quicker and without waiting out the agreed period.

Frequently Asked Questions

Is marketplace available in the UK?
Currently marketplace is not available in the UK, however this is currently under review and if marketplace does become available to businesses and individuals in the UK we will update this on our website.
How does your marketplace lending platform work?
The Marketplace platform works on the same principle as Peer to Peer (P2P) lending. The main difference being the fact that a loan in Marketplace is requested by Loan Originators (LO’s) who gather clients and create loan applications through our platform. When and investor invests in a LO they cannot see information surrounding the individual requesting the loan instead, they can only see information about the LO who is held responsible for the loan.
Are there any limitations to lending/investing using your marketplace lending software?
Anyone can lend / invest, whether you’re a business or a private entity. We have one of the most flexible fintech software in the world. The sky’s your limit.