easyMoney has revealed that its investors can sell loan parts on the platform’s secondary market in under 24 hours, on average.
According to the platform’s in-house data, the 24-hour timescale has been the norm for easyMoney investors since the property lender was founded in 2018.
Jason Ferrando, chief executive of easyMoney, says that easy access to the secondary market offers flexibility and liquidity to investors who like to know that they can ask to withdraw cash at short notice.
“We are often asked by our investors, ‘is my money locked up?’ or ‘what if I need some of the money invested’, so the key benefit to having a secondary market is clearly flexibility,” Ferrando says.
“Our clients feel more comfortable knowing that at any time they can ask to withdraw. And looking at our statistics page, since inception our clients have been able to sell down their position on average in under 24 hours.”
Furthermore, investor feedback has been glowing, with some comments suggesting that access to the secondary market is a major selling point of the platform.
A recent Trustpilot review gave easyMoney five stars for “good all round service”, with the reviewer adding: “Easy to set up account. Good rates of interest and when I needed to withdraw money the process was quick and easy.”
Meanwhile, one of the family offices which works closely with easyMoney said that the 24-hour track record of the platform’s secondary market has encouraged them to invest more money.
“The secondary market being available allows us to commit more capital than if our capital was locked up for 24 months,” said the family office.
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“We know that with the best intentions in the world a development may over run slightly, so if you have invested for 12-18 months and then find that the capital isn’t available for 24 months or longer, it can change your appetite for investing.
“We are a big supporter of easyMoney and the team and enjoy watching them deliver a great service and growing every year”.
While easyMoney makes it clear to its clients that selling down loans is subject to liquidity, to date this has always been under 24 hours.
“We are part of Stelios’s easy family of brands,” adds Ferrando.
“We have a number of supportive family offices who have historically been happy to purchase loans on our secondary market.
“We also have a steady flow of new retail investment due to the confidence investors have in the trusted easy brand and our track record to date.”
According to recent data collated by Peer2Peer Finance News, during the last financial year easyMoney was the largest Innovative Finance ISA (IFISA) provider in the country, with more than £60m invested in its tax-free investment product.
Ferrando says that many of the platform’s IFISA investors are reassured by the presence of the secondary market, as they can continue to target the tax-free returns of the IFISA, without feeling that they are locking their money away for years at a time.
“Contrary to some opinions, the secondary market is very important when choosing to invest with us,” Ferrando says.
“During our customer on-boarding journey we inform them of what we do, the risks involved and warn them they should not over invest. Because of this our clients add to their investments responsibly.
“We are aware that people’s circumstances change, and sometimes can change very quickly. Having the secondary market there for them gives them the comfort they need.”
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