About the trading platform
Folio Investing operates a Note Trading Platform* where investors may buy and sell LendingClub 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 LendingClub members.
To access the Note Trading Platform, you must have an account with LendingClub and you must open a Folio Investing trading account through LendingClub.
Benefits of buying notes on the Note Trading Platform*
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 LendingClub platform.
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.
Gain access to LendingClub Notes that have already been purchased if you live in a state in which Notes may only be purchased from existing holders.
Folio Investing does not charge the buyer any fees.
Benefits of selling Notes on the Note Trading Platform*
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.
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.
Seek a profit by listing Notes at prices above par.*
Folio Investing charges the seller a transaction fee equal to 1% of the purchase price.
How it works
Sellers list Notes for sale
- Sellers decide which Notes to sell.
- Sellers pick a price at which they will sell their Notes.
- Notes are listed on the Note Trading Platform for registered investors to browse and purchase.
Buyers browse and select Notes for sale
- Buyers review the information about the listed Notes.
- Buyers purchase Notes at the purchase price set by the seller.
The trade settles and the buyer receives the 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 LendingClub and not by Folio Investing.
- Upon settlement, the seller is charged a transaction fee equal to 1% of the purchase price of the Note.