How this website works
This is an online person-to-person lending & borrowing marketplace matching borrowers' unsecured personal loan requirements (Loan Requests) with lenders' money. All loan requests are credit rated in the same way and there are two methods of fulfilment (markets) available ...
|The Bidding Market||
The Matching Market & AutoLend
How it works…
Why use the Bidding Market?
Who can use the Bidding Market?
Borrower, Lender & Advanced Lender Memberships
How it works…
Why use the Matching Market & AutoLend?
Who can use the Matching Market & AutoLend?
Advanced Borrower & Advanced Lender Memberships
This is "people power" at its purest! No banks! No middlemen!
It's a win-win situation!
This is the NEW NUMBER ONE WEBSITE for Social Lending & Borrowing
Step 1: How much do you want to borrow?
To help you decide how much you’d like to borrow, over what period and at what interest rate, we have included a Quick Loan Calculator, which enables you to explore costs and monthly repayments.
Then the first step is to Register and choose which type of membership you’d like:
Step 2: Create your loan request
When you are logged in and have chosen your memberships, use the Loan Calculator (from the menu on the left) to check you are happy with the amount you are borrowing, costs and repayment levels.
Complete the Existing Loans, Monthly Income and Expenses details and finally decide if you would like your Loan Request to appear in the Bidding Market (New Bidding Loan Request) or the Matching Market (Matching Loan Request).
These are options at the bottom of the page but do check that you saved your changes and checked the final loan numbers (click Calculate to update). Finish the form by adding details of the loan itself and create your loan request.
We then do all the ID verification and credit referencing. Remember, only credit worthy borrowers are accepted.
Step 3: Lenders compete to satisfy your loan, driving down the interest rate
As lenders bid (manually or automatically) on your Loan Request, the interest rate will begin to drop. The more lenders competing, the lower the interest rate is likely to fall. You can monitor this activity on your Borrowing Account and you will receive emails confirming the progress on your Loan Request.
Step 4: You get your loan - at lower cost
When sufficient lenders have made offers to fulfil your loan, you will be asked if you would like to accept. If your Loan Request listing has longer to run, you may choose to wait to see if lenders continue to compete to reduce the interest rates further. Either way, at the end of the listing period, you will be asked to Accept or Decline the loan. If you accept, your loan is paid over to you and our fees are deducted. Your repayments will be collected each month by Direct Debit.
Borrower loan example
Dave has a good credit reference and wishes to borrow £4,500.
He is prepared to pay a nominal interest rate of 7.5% and repay the loan over 3 years.
The borrower loan fee of £115 (£70 flat fee + 1% of the loan amount) and the compensation fund contribution of £45 are deducted from the loan when it's paid out, so he actually receives £4,340.00. The returnable contribution to the compensation scheme fund, in this case, is 1% of the amount of the loan, or £45, but it varies with the credit rating of the borrower.
Dave pays back the loan with interest in 36 equal monthly instalments of £139.98 each month, a total of £5,039.28.
Having made the final repayment he gets his compensation fund contribution of £45 back!
Dave's loan APR is 9.85% (including the effect of the compensation fund contribution).
If you ...
- require a loan, and
- have a good credit record, and
- want to avoid the time consuming and humiliating process of dealing with banks,
then you will find this is the best, as it will provide you with the loan that you need, quickly, with no hassle and at affordable cost!
This is the best place for borrowing if you have a good credit rating. It's quick & easy & it will cost you less than to borrow from a bank!
This is the NEW NUMBER ONE WEBSITE for Borrowers
Step 1: Decide what interest rate you require
To help you decide how much you’d like to lend, over what period and at what interest rate, we have included a Lending Calculator, which enables you to explore the return on your savings that you could achieve.
Step 2: Decide to use AutoLend or select your borrowers
We do all the ID verification and credit referencing for you so only credit-worthy borrowers are approved.
To get started, register and choose which type of membership you’d like:
- Lender membership gives you access to the Bidding Market … and you can also purchase …
- Advanced Lender membership which gives you access to the automated Matching Market.
- Membership of the Compensation Scheme is an optional extra ... it aims to cover any potential loss in a borrower late or missed payment, arrears or default situation.
Then deposit the money you wish to lend into the our segregated Client Money Bank account. In such an account, deposits belong to you, the depositors, not us, and are covered by the Financial Services Compensation Scheme.
You’re ready to start lending…
Step 3: Your money is matched with credit worthy borrowers
To lend on the Bidding Market, select View Loan Requests from the Lending Menu and decide which loans you’d like to support. Feel free to ask the borrower questions if you’d like more information. The Lending Offers tab on each Loan Request shows you all the offers placed to date and the interest rates they’ve offered. At the bottom of that tab you can enter your own bid by entering how much you’d like to lend and at what rate of interest.
To lend on the Matching Market, you can create up to five lending portfolios in our Autolend automated matching facility, each with different parameters to determine how your money is to be lent out.
You may wish to use ARBU (Automated Response to Bumped-off Underbid!) so if you get “bumped-off” a Loan Request because other lenders have offered a lower interest rate, your ARBU settings will respond automatically (according to the rules you’ve set) to keep you in the running.
So whether you opt for the manual method or the automated option, your money will be matched with credit worthy borrowers.
Step 4: Your money is lent out (getting you a better return than from a bank)
- Your Loan Book shows how much you've lent out, what return you are getting & how much is still available for lending
- Borrowers' monthly repayments are credited to your account
- You can withdraw those funds whenever you want using Direct Credit (free and recommended), Bank Transfer or PayPal
Lender lending exampleEmma has £4,500 savings that she wishes to invest for a good return, hopefully more than 7.0%. She likes safety and security so she has already subscribed £4.95 to become a member of the optional Compensation Scheme.
She knows that this scheme will cost her 0.4% per annum of the total amount lent, which works out at £18 per year or £1.50 per month if all her money is lent out all of the time. But she knows that will give her peace of mind that her money is safe. Emma sets up her AutoLend portfolio to place lending offers in both the bidding and matching markets, and accepts most of the default settings, except as follows:-
a) Interest rate minimum of 7.0%
b) credit score minimum of 5 stars (approximates to A* and A, on the A*, A, B, C, D scale - we only accept A*, A and B borrowers)
c) maximum exposure to any one borrower of 2% of her money, which is £90.
AutoLend does the work and a few hours later she has lent out all her money to 51 borrowers at interest rates from 7.0% to 8.9% averaging 7.5%.
Emma's up front flat rate loan fee was £5.10, 10p per loan slice.
Her monthly loan fee will be £3.75 (it would have been only £2.25 without the optional compensation scheme). She is receiving just short of £140 per month net return (varies slightly month by month) and will receive, in total, £4,962.31
Emma's lending AER is 6.62%, including her compensation fund costs.
If you ...
- have some savings you wish to invest, and
- want a better return than the banks currently offer, and
- want to avoid the bureaucratic & time consuming process of dealing with banks,
then you will find this is ideal, as it will provide the safety & higher return on your savings that you require, quickly and at an affordable cost!
This is a safe way to get the best rates of interest on your savings! Register, subscribe, lend your savings & you'll be getting the best return!
This is the NEW NUMBER ONE WEBSITE for Lenders
This section highlights some of the features that make this the most functional social lending and borrowing website available:-
Affordable memberships to borrow and lendBorrower membership covers the costs of the necessary ID verifications & credit referencing.
Similarly Lender membership covers the costs of the necessary ID verifications & anti money laundering compliance checks.
These memberships enable us to introduce incentives and benefits targeted to the different groups.
Lower costs of borrowingBorrowers pay less in interest & fees than they will at a bank
Help and guidance everywhere!We recommend that new borrowers and lenders read through our help section.
How it Works is a quick guide;
FAQs, Guidelines and Glossary provide greater detail, full of hints and tips.
Tooltips everywhere! Even when you get started, wherever you need to enter information, just hover the curser over the label or entry box and an explanatory tooltip will appear to guide you!
"Live Help" is also available during office hours.
Loan calculators to assist borrowers and lendersBorrowers can test the affordability of their loans using the Quick Loan Calculator. Or, when logged in with a Borrower membership, can use the full loan calculator and with just one click all the information is ported into the loan request form.
Lenders can find out the return they will generate from their lending using the Lending Calculator
Simple loan request creationBorrowers' loan request system is quick & easy, with the opportunity to transfer details from the Loan Calculator to a Loan Request with just one click.
Lenders' easy & quick biddingLenders' bidding system is quick & easy. Just fill in the two items:
Bid Amount & Interest Rate, and submit. You will receive email confirmations
AutoLend for higher volume automated lending
AutoLend offers a quick way to achieve higher volume lending with automated bidding.
Up to five lending portfolios are available to specify different lending requirements.
An AutoLend portfolio can lend in either market, Bidding, Matching or both.
ARBU – Automated Response to Bumped-off Underbids. This tool enables lenders to set parameters for automatic new bids. So, if you get “bumped-off” a Loan Request because other lenders have offered a lower interest rate than you, ARBU will respond automatically (according to the rules you’ve set) to keep you in the running.
Optional lenders' compensation schemeThe optional Compensation Scheme aims to reimburse any potential loss in the situation of a borrower late or missed payment, arrears or default.
Lenders get the best rates & the highest returnLenders get more net interest after fees than they will at a bank
Payments & bankingLenders may make deposits into their holding accounts or withdraw money by Direct Debit/Credit/BACS, Bank Transfer or PayPal. Deposits and payments may also be made with credit and debit cards.
Borrowers' repayments are always made by Direct Debit.
The deposits & withdrawals links are to be found in the User Menu.
Transactions are made between the Client Money segregated bank account and the user's nominated bank account. Money shown as held in a lender's "Holding Account" is, in fact, in the Client Money segregated bank account which, of course, is covered by the Financial Services Compensation Scheme (the "FSCS") up to the value of £85,000 per person. We will also pass on the benefit of any interest earned in this account to users pro rata. Unfortunately this is currently minimal!
Email notifications to keep you informedStay up-to-date with all the activity happening with your loan or lending via email notifications. You can choose to turn off some alerts so you get just the right amount of information in your Inbox. Simply uncheck unwanted email alerts in your profile settings.
What you need to knowWhat you need to know about the risks in using this site ...
- We have safeguards including SSL, anti-hacker, data protection, automated backup and continuous updates of components.
- We only allow credit worthy borrowers to request loans so if your money is lent out, it is to someone we expect to honour their debt.
- If your money is not lent out it is held in a segregated or ring-fenced client money account for you, which is covered by the Financial Services Compensation Scheme.
- If anything happens to Madiston plc, the loans will continue without interruption because they are direct agreements between lender and borrower.
OUR QUEST IS TO:
- Provide the best website for quickly matching creditworthy borrowers with lenders & savers
- Have the safest lending site with the lowest default rate & lenders' optional compensation scheme
- Inform customers precisely what is happening at all times online or by email
- Execute secure & segregated client money facilities & speedy transfers
- Combine affordable fees with service excellence
- Constantly improve the site with enhancements, innovations, new products & markets
- Quickly & fairly solve any problems that may arise