To start bidding you will need to deposit funds into your Lending Hub Account which you can do either through direct bank transfer or PayPal. When you place a bid our system checks whether you have sufficient free funds available to fund the amount you are bidding.
When you place a bid and it is 'winning' we lock off that amount in your Lending Hub Account. If the loan completes successfully we will use the funds available in your account to settle the loan.
You can view the status and progress of the loans that you have lent money towards in the My Account section. Here you will be able to view:
- loan profiles
- when repayments have been made
- net proceeds available to you
Generally there is little that you need to do once a loan has been settled. Should a borrower default on their repayments there is nothing you need to do (unless we contact you directly).
You should familiarise yourself with how Lending Hub settles, services and reports on active loans.
As a lender it is important to create a diversified loan portfolio and to lend small amounts to several borrowers. By spreading your investments across a number of borrowers you can reduce your overall portfolio risk which helps to maximise returns in the longer-term.
Lenders should see the section on Credit Grades and the Lending Hub rating system.
Also see Managing a Loan Portfolio, which provides information on how to diversify your risk.