First Note up for Trade on Trading Platform picked up speed again fast after the relaunch. As of today there are already more than 500 loan listings open for bidding. 5 loans already originated, despite the short timespan since re-opening.

Today I saw the first note for resale on the note trading platform. It is sold in auction mode where lenders can bid (sealed bids) during a seven days auction. Currently there are four bids. Would the auction end right now, then the buyer would purchase the note at a steep discount (40.4 Cents on the dollar). But I am sure bid prices will rise fast when more lenders discover that there is now activity on Prosper’s secondary market.

First loans for sale on Lending Club’s Note Trading Platform

A day after the start of the secondary market (see: “Lending Club allows lenders to trade their investments“) of, today 3 loans are offered for sale. I doubt that these Lendingclub loans will find a buyer, since they are all more then 60 days late and the discounts of the asking price versus the outstanding interest and accrued interest are rather small (13.64% to 23.13%). But maybe someone will purchase the first note (it’s only 20 US$) just to experience and test the process.

There have also been reports by lenders, that do not fit the new requirements, but were able to sign up at FolioFn, raising the question if these lenders can buy notes even if they are prohibited from lending themselves.


Lending Club allows lenders to trade their investments has introduced a secondary market for lenders. This is a major step, because one disadvantage for lenders in p2p lending was the lack of liquidity. Once the money was lend it was tied up (apart from repayments) until the end of the loan term (typically 36 months and more).

Through it’s secondary market – called Note Trading Platform Lendingclub allows lenders to offer their loans (or more precisely notes representing these loans) to other lenders.

Sellers list Notes that they would like to sell and enter an asking price. Buyers browse Notes that are available for sale, review payment history and the evolution of the borrower’s credit score, and buy Notes at the asking price. Buy orders received before 4pm Eastern time will generally settle same day, while buy orders received after 4pm Eastern time will settle next day.

Information about the Notes
Each listing contains the Note’s interest rate, issue date, outstanding principal, accrued interest, number of payments left, payment history to date, and the variation of the credit score of the underlying borrower since the issue date. Note, however, that the Notes are not “re-graded” over time, so you should not rely on grades assigned to Notes at the time they were issued to assess the current risk of a Note.

The Lending Club note trading platform is operated by FolioFn, a registered broker dealer. Foliofn charges to the seller a trading fee equal to 1% of the transaction amount. There is no fee charged to buyers.

Right now there are no notes offered for sale.