The bidding market
The bidding market is an online reverse auction for lenders to bid on borrowers' loan requests for unsecured loans.
It's a "reverse auction" because the "winning" lenders will have bid the lower interest rates.
The borrower's loan request should present all the information required by the lender on which to make a decision as to whether to lend or not. On the loan request Q & A tab, lenders may ask questions of the borrower to clarify relevant information.
Lenders may place bids on loan requests in the bidding market manually. If thay have an Advanced Lender subscription then they can also place bids via AutoLend and ARBU.
Once a Loan Request is fully funded, the average interest rate falls for the borrower as lenders under-bid each other to be part of the loan.
Those lenders with bids of interest rates that are too high will get "bumped-off" but may re-bid at a lower rate.
When the loan request is fully funded, the borrower has the option of terminating the loan request listing early by accepting or declining the loan, rather than waiting until the listing period ends.
When the loan request listing period finally ends, the borrower has up to 48 hours to decide to accept the loan at the final interest rate offered (the weighted average of all the lending bids making up the loan request amount), or to decline. The borrower is not obliged to accept the loan.
If the borrower decides to "Accept" the loan, those Lenders who are still "in" will become the lenders to that borrower.
Logged in > Main Menu - Lending > View Loan Requests > Select Loan Request:
Click on selected Loan Request title "Car" > opens the Loan Request details. In this case this happens to be a Loan Request on which we have already placed a bid. We intend to place another:
Select the Lending Offers tab:
If we want to add a bid of £30 at 7.99% the entries you will make look like this:
When the entries have been made click the "MAKE OFFER" button. You then get the page shown below. You can click the link to read the TERMS AND CONDITIONS and then you should check the check box to indicate your agreement and acceptance of the Ts & Cs. Then click the "PLACE OFFER" button.
You get a message confirming the acceptance and saving of the bid:
The new bid will then show in the list of offers on the Lending Offers tab:
Finally, you will receive an email confirming the placing of that bid on the Loan Request as follows: