For investors
31 Jan 2024

Meeting Investors' Needs: Introducing a Secondary Market for Loans

We are thrilled to announce a significant enhancement to our platform that can greatly improve your investment experience – the introduction of a secondary market for loans through the assignment of loans between investors. This process is being implemented in strategic steps to provide maximum benefit to our diverse community of investors.

Meeting Investors' Needs: Introducing a Secondary Market for Loans

Some of our investors are comfortable with receiving their funds within the standard 6-month term, while others prefer 12 months. However, there are also those who require immediate access to their funds. Recognizing these unique needs, we are phasing in the secondary market for loans.

In our current model, loans are invested in and repaid within a 6-month timeframe, with no other options available. As the initial phase of our secondary market launch, we will offer loans that are about to expire, and for which qualifying brands seek an additional 6 months, to new investors as part of a batch.

Rest assured that this transition will be managed by Scramble and will not affect your initial repayment schedule. If brands wish to extend the repayment period, we will present the existing loans of our investors to potential new buyers. As a result, the original investors will still receive their funds within the initial 6-month timeframe as planned. On the other hand, the new investors who acquire the loan will start receiving funds in the subsequent 6-month period, as if it were a new loan to the brand. The purpose of this step is to increase the predictability of your return on investment over 6 months, even in the case of loan extensions by the brands.

Our commitment to flexibility and investor satisfaction does not end here. Soon, we will allow investors to put their loans up for sale themselves, giving them the opportunity to receive funds even sooner than the original 6-month period. This feature will prove to be a great benefit to those who need to access their capital quickly.

To sum up, the introduction of a secondary market for loans on our platform is a significant step forward that will help us meet the dynamic needs of our clients and provide them with greater liquidity and flexibility.

Frequently Asked Questions

How will the loan assignment affect my current loans?
The loan assignment increases the probability of timely repayment within the first 6 months.

Can I invest in other investors' loans?
Yes, you can. Those loans will be available in the next round.

What happens if I don't authorize the loan assignment?
If you don't authorize the loan assignment, your funds will continue to be repaid as usual, relying solely on the money from the brands. Please note that the brands have the right to postpone payments and extend the loan period by 6, 12 or 18 months, which may change or extend the repayment schedule.

What happens if a brand extends the loan term?

If you authorize the loan assignment, your original schedule will not be affected. If not, your repayment schedule will be extended.

Are my current loans no longer protected?
Loan assignment does not affect your loan protection. Depending on the loan group you choose, you still have three levels of protection.

Will other investors see my personal information?
No, they won't. In the case of loan assignment, other investors will only see your Scramble ID, without access to any personal information.