UK-based peer-to-peer lender Proplend recently announced the launch of its new Tranche A auto-lend facility, which allows Lenders that are participating on the property lending platform to now have an automated investing option that allocates their available cash to eligible loan parts. The facility also offers a target return of 5% after fees.
According to Proplend, Auto-Lend may be ‘toggled’ on and off through account dashboards to switch between the manual select (default) and new automated option. Proplend noted that the facility may be useful for those who don’t have the time, availability, or perhaps don’t feel comfortable manually selecting their own P2P investments.
Proplend also reported the new facility will limit participants capital risk exposure too, allocating only to Proplend’s safest Tranche A investments (less than 50% loan to value of the securing commercial property).
“Classic account or ISA Lenders with the facility enabled will have priority for Tranche A investments in new loans with terms of up to three years. Auto-Lend will run daily for both Proplend’s, primary ‘In Funding’ market and secondary loan exchange. Once enabled, the facility will continue to automatically invest all current and future available cash from new deposits, transfers, accumulated income and capital repayments until disabled.”
Proplend Founder and CEO Brian Bartaby stated:
“We already offer a range of account types and Tranche investments, so it’s a natural next step to give our current and prospective Lenders the option of more passive, automated investing. It’s entirely up to them. Our token-based queuing system means more Lenders will get a bite of the cherry.”
Bartaby added that the available cash in Auto-Lend enabled accounts will be allocated in turn, £1,000 per account at a time.