Note Trading Platform
How does the Note Trading Platform work?
The owner of a Note lists a Note for sale and sets the Asking Price for that Note. Potential buyers browse the Notes available for sale on the Note Trading Platform and review information about each Note. When a buyer finds a Note that they would like to purchase for the Asking Price, they place an order for that Note. The trade for the Note settles approximately 1 business day after the buy order is submitted.
Once the trade settles, the Note is transferred from the seller’s Lending Club account to the buyer’s Lending Club account. The funds used to purchase the Note are similarly moved first from the buyer’s Lending Club account to Folio Investing for the benefit of the purchaser and then to the account of the seller. Upon settlement, Folio Investing charges the seller of a Note a transaction fee equal to 1% of the Asking Price. The Note(s) and the net proceeds of the sale are then delivered by Folio Investing to the respective Lending Club accounts of the buyer and seller.
Both buyers and sellers may monitor their trading activity on the ‘My Account’ page of the Note Trading Platform. More information about monitoring your trades can be found here.
Frequently asked questions about buying Notes can be found here.
Frequently asked questions about selling Notes can be found here.