We use the ‘Bottom-up’ funding model for all pipeline loans. In the event that a new loan is over-subscribed with pre-funding, we honour the smallest investor pledges first, and work upwards.
As an illustration, if a £100 loan had pledges of £10, £20, £20, £60 and £80 - the £10 and £20 investors would be granted their full amount, and the £60 and £100 investors would receive £25 each. This prevents larger investors overwhelming smaller loans, which would happen if we filled the loan proportionally.
Please note that as we are moving towards cash preferencing. Investments pledged, with physical funds transferred onto the platform will now take priority over pledges that are yet to funded.
Please note that our deadline to make the physical funds transfer to support the initial investment pledge is now 24 hours and not 48 hours as was the case previously. This is being applied as from 17 January 2018.