Originally Posted by
icyfire
While reading the email from LC today I realized that LC themselves also invest in the loans published on the LC website. So the reason why it's almost impossible to invest in smaller loans it's probably because LC probably fill 90% of the loan before it's made available to retail investors.
So LC's parent company, Finance Direct, is looking to raise capital from LC investors at 6.75% per anum and then Finance Direct will use that money to invest in LC loans at 10-12%. It's a smart business model.
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