Post by tony on Apr 20, 2015 13:28:05 GMT
Although I am an investor, and unlikely to ever be a borrower, I would like to know the process of borrowing from SS. When a loan becomes "live", and investors are able to part loan and start earning 12%, what do borrowers pay SS up to the point of drawdown? After receiving the funds at drawdown, presumably they then start paying interest but where does the money comes from to enable SS to pay investors 12% from the point when the loan becomes "live" to the point of "drawdown"? Also, how long is a loan offer valid - I don't understand how, for example, PBL16 is still not drawndown months after becoming "live" and how SS can continue to pay investors 12% during this long period.
Perhaps my inexperience of investing in anything other than banks and building societies results in my being rather naïve when it comes to P2P!
