Whilst UK alternative lending platform Funding Circle has traditionally operated on an auction model to allow potential investors to bid on loans. However, reports from Crowdfund Insider say that their business model is about to see a major change. The company reportedly sent a letter to investors, then announced on its site, that the company would be shifting away from an auction model and towards a fixed interest rate for its loans. According to reports, Funding Circle said the change is part of its focus on "how best to build Funding Circle to deliver a marketplace that works effectively for hundreds of thousands of people in the UK and internationally. " In other words, if you want to borrow money at Lending Club, you'll have to pay them more than they charge you.
UK alternative lending platform Funding Circle has traditionally operated on an auction model to allow potential investors to bid on loans. However, reports from Crowdfund Insider say that their business model is about to see a major change. The company reportedly sent a letter to investors, then announced on its site, that the company would be shifting away from an auction model and towards a fixed interest rate for its loans. According to reports, Funding Circle said the change is part of its focus on "how best to build Funding Circle to deliver a marketplace that works effectively for hundreds of thousands of people in the UK and internationally. " In other words, if you want to borrow money at Lending Club, you'll have to pay them more than they charge you.