Fee calculation

Thank you!

Each to his own, but personally I think the current system works well. I doubt that there are many lenders that want out but aren't willing to suffer the extra 0.5% fee on the few loans that they've had at the recent 6.5% rate. So, I doubt that it is contributing to the lack of available loans to any significant degree.

If I'm wrong, it would be interesting to hear from anyone who is wanting out, but is unwilling to do so because of this fee.

I would not support a rate cut for reinvested money to simply benefit new money. I prefer easylender's suggestion above which allows new money to take a voluntary rate cut in order to buy up old loans at old rates, thus getting invested more quickly and also benefitting the sellers who avoid a haircut on selling their loans.

With deposited money what if it was paid as cashback and not interest while waiting?

Happy to look into a cashback option - it could kick in if matching times go beyond a certain agreed level e.g. 14 days. In the normal course of business it shouldn't be needed, but it would help in times like these.

The issue with the rate cut option is that it's difficult to gauge how many people on both the buying and selling side would actually use it. We could create another secondary market for both sellers (i.e. sell now and incur an X% shortfall fee or wait for buyers at your rates and don't incur a fee) and buyers (buy now at X% or wait in the queue for Y%). There is something quite appealing about this for both sides, especially the seller where I can see this being a popular option if you have a window of required access e.g. no immediate need. However, as has been mentioned here before, waiting 30 days incurs roughly a 0.1% annualised reduction on current rates, so if you had an investor holding 6% loans (versus current rate of 6.5%) you'd have to be expecting a delay of 6 months for new money before it would be worth accepting this rate reduction for getting matched instantly.

We would of course be completely transparent about this fact - do you think there would still be a demand on the buying side? Interested to hear your thoughts.

Matthew , You're right about the trade off but I think @nesako has expertly explained above why that doesn't always tell the whole story. Being prepared to buy old loans at their old rates would possibly suit some investors but not others, the key is giving a choice; 'Please tick the box if you would be happy to buy existing loans at their historical rates which may result in faster investment of funds" (for example). This gives an option to those investors and will also benefit potential sellers who may sell loans without penalties. Of course others may prefer to hold out for current rates if taking a longer term view of their holdings (I would fall into this camp). I wouldn't like to try and predict what the demand for this option might be on the buying side, but some threads on here do illustrate that cash drag and speed of deployment is a major factor in the thinking of at least some of your investors.