Asset Finance  through peer Lending

The loan process begins when a borrower on the platform makes a loan request via their dashboard and submits that to Ablrate for approval. Our review process is detailed on our Credit Process page, but assuming the loan request meets our standards and has been listed as an auction, we will approve its listing and the loan will go live.

All Lending Members will be notified via their dashboard and email that a new loan is posted and the auction process begins.

Lending members will be able to make 'One Time' bids or use the 'Dynamic Bidding' tool. When requesting the loan the borrower will have selected a range of interest that they are willing to take bids on. For example a borrower may select 6% - 14% as an interest range, Lending Members will be invited to bid within this range for the amount of loan that they would like to invest in.

All the bids are listed on a time received basis and the loan is considered 100% funded once bids are received to completely fund the loan. At this point the borrower will have the option to close the loan request at the HIGHEST interest rate that is required to complete the loan. So if you have bid 10% but the highest rate required to fully fund the loan includes a bid at 13% then ALL lending Members will receive 13%.

However, on the corner of the loan overview you will see a marker that appears that says 'Still Accepting Bids'. This allows a borrower to run the auction to the full term of the auction period, to see if they get any better bids from members who are willing to bid lower.

The system will display the current level of interest available on the green area as the auction progresses. Anyone who has bid above the rate displayed will be considered an 'Out Bid', meaning that their current bid is not going to be accepted. At this stage the amount of funds bid in an 'Out Bid' will be unfrozen from a Lending Member's account and they are free to bid again at a lower rate. Dynamic Bidding can be used to manage this process.

We believe that running an auction in this 'top down' manner ensures that all members get the same rate which equalises the decision process across all members. It also encourages borrowers to supply as much information as possible for a loan request. If the borrower wants to achieve lower rates they need to give thorough details on the loan and make the loan request very clear to Lending Members so that they have the confidence to bid lower rates if they feel it's appropriate.

We will be reviewing the success of this process but we believe that it encourages transparency and fairness to both Lending Members and borrowers.