The Auction Process
How do I invest?
There are three ways to invest on Peer Funding Limited:
Auction – a direct auction where you submit and control your own bidding
AutoBid – let the platform do the hard work and bid dynamically to your own predefined selection criteria
Secondary Market – a marketplace for loan parts sold by other investors. You’ll be able to see loan repayment history before you buy and build a fully diverse portfolio
The auction process
The Marketplace is where you’ll find every invoice or loan listing available for investment. You’re presented with a snapshot of the available deal. If the snapshot sparks your interest, click to see more information, company profile and specific borrowing requirements.
Peer Funding operates a reverse auction principle where the investor sets the market rate for the business funding request. Once the funding request is fully allocated investors have the opportunity to outbid each other by offering a lower rate to the borrower.
The outbidding process
Peer Funding operates a dynamic bidding model. The rate bid should be the lowest rate acceptable to the investor. Our bidding model will submit a bid at the highest possible rate and if outbid, the dynamic bidding process will keep the investor in the auction process by resubmitting bids, but will never pass the pre-set minimum rate of return.
Investors continue to submit bids until the auction closes or the borrower decides to accept the rate on offer. Once the loan amount has been fulfilled investors can continue to submit bids at a lower rate. A new lower rate bid replaces the highest rate bid, this is known as ‘Outbidding’.
Last in and first out. Where there are a number of investors all with the same higher rate, the investor to make the last bid is the first to be replaced.