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About the Trading Platform


Folio Investing operates a Note Trading Platform1 where investors may buy and sell Lending Club Notes to and from each other. The Note Trading Platform was designed to provide investors with the chance to realize some liquidity in transactions with other Lending Club members.

To access the Note Trading Platform, you must have an account with Lending Club and you must open a Folio Investing trading account through Lending Club.

1 FOLIOfn Investments, Inc. ("Folio Investing") is a registered broker-dealer and member of FINRA and SIPC and operates the Note Trading Platform. Folio Investing is based in McLean, VA and is not affiliated with Lending Club. Folio Investing has no role in the original issuance of the Notes and is not responsible for and does not approve, endorse, review, recommend or guarantee the Notes or the accuracy, reliability, or completeness of any data or information about the Notes. See the Important Disclosures page for additional important information. More information about Folio Investing is available at www.folioinvesting.com.

Benefits of Buying Notes on the Note Trading Platform2

Shorter Term Investing

You may buy Notes that have a shorter time remaining to maturity than the standard 36 or 60 month terms of Notes purchased on the Lending Club platform.

Investment Opportunities

You may buy Notes that are priced below their value to you. You can review loan performance data to identify Notes that you believe to be "underpriced" relative to their value to you.

Access

Gain access to Lending Club Notes that have already been purchased if you live in a state in which Notes may only be purchased from existing holders.

Fees

Folio Investing does not charge the buyer any fees.

Benefits of Selling Notes on the Note Trading Platform2

Liquidity

Liquidate your holdings by selling Notes before they reach their 36- or 60-month maturity. While there is no guaranty that a Note will sell, many investors have found liquidity through the Note Trading Platform.

Portfolio Management

Manage your portfolio by selling Notes that are no longer attractive to you. You might choose to sell Notes based on the payment history or credit score trend of the underlying borrowers, or other factors.

Potential Profit

Seek a profit by listing Notes at prices above par.3

Fees

Folio Investing charges the seller a transaction fee equal to 1% of the purchase price.

2 This information is not intended as investment advice. You should consult your financial advisor if you have any questions or need additional information.

3 A Note is considered to be sold at par when the selling price equals the outstanding principal plus any interest accrued since the last monthly payment date.

How it Works

Sellers list Notes for sale

  • Sellers decide which Notes to sell4
  • Sellers pick a price at which they will sell their Notes5
  • Notes are listed on the Note Trading Platform for registered investors to browse and purchase

Buyers browse & select Notes for sale

  • Buyers review the information about the listed Notes
  • Buyers purchase Notes at the purchase price set by the seller

Trade settle & buyer receive Notes

  • Trades typically settle in 1 business day
  • Any payments made after the date that the trade settles will go to the buyer, including payments of principal and any interest that accrued before the Note was sold. These payments will be distributed by Lending Club and not by Folio Investing
  • Upon settlement, the seller is charged a transaction fee equal to 1% of the purchase price of the Note

Learn more about the Note Trading Platform

4 Some Notes may not be eligible to be sold on the Note Trading Platform, for example Notes in "Default" or "charge off" status. Learn more about which Notes may be sold on the Note Trading Platform.

5 The rules of the Note Trading Platform require that a Note not be priced at a markup greater than 70% of the total value of accrued interest and outstanding principal, or at a price that would otherwise produce a negative yield to maturity. Learn more about how Notes can be priced.

Notes are offered by prospectus filed with the SEC and you should review the risks and uncertainties described in the prospectus prior to investing in the Notes.

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