Investments, Strategies, Tutorials

How can you benefit from investing on the secondary market?

Your investments can bring you even better results if you use all functionalities of iuvo. You get good interest rates, the right loans are part of your strategy – now what? You want to find even better opportunities for investing, or you want to free some of your funds? Secondary market on iuvo is the right place for you. Today we will tell you more about its functionalities, and how to get the maximum out of them.

What is secondary market?

Secondary market is a place on iuvo, where investors make deals with each other with loans they already have invested in. It gives you the opportunity to buy loans from other investors, and to sell loans, too. Please, remember that the only fee on iuvo is 1% of the sold amount on secondary market.

The selling price can be different than the actual price of the loan, as follows:

–  higher than the nominal (premium price)
–  lower than the nominal (with a discount)
–  equal to the nominal (there is no change in the price)

What exactly does the price of the loan mean?

When selling loans on the secondary market, the choice is yours. Depending on the circumstances, you can sell your loans on a different price.

– If you need your funds in a shorter time, we would like to recommend you to sell your loans on a discounted price. This way they are way more attractive to the buyers in comparison with the loans on primary market, which will speed up the process. The size of the discount entirely depends on how fast you want a specific amount to be available.

– If you actively invest on primary market, but you would still like to further diversify your strategy, you have the possibility to sell your loans on up to 20% premium price. When you are the seller and someone buys a loan of yours, you will get more than the loan actually costs. If you buy a loan on a premium price, you have to decide if the expected return can compensate for the higher price and this deal to be a successful one for you.

– If you want to free your funds from some loans, that are not part of your strategy, but you do not insist on it happening as soon as possible, you can sell them on their nominal price. In this case, the only thing you will pay is the fee of 1% from the sold amount. For the buyers, these loans are equivalent to the ones on primary market, because their price is the same as their principle.

What are the benefits from investing on secondary market?

The market offers higher liquidity to the sellers, and a possibility for higher profit for the buyers.

Investing manually on secondary market gives you the opportunity to invest in loans that are no longer available on primary market, and in loans that have more installments paid. This increases the possibility for the loans to keep being paid regularly, which will increase the loans with current status in your portfolio.

How to filter the loans?

Filtering loans on secondary market is the same as it is on primary market. The only difference is the filter “discount/premium”. What loans you will see depends on what value you set as a limit. For example, if you set ‘0’ in the second box of the filter, you will only see loans on a nominal price and discounted ones.

If you are still not sure about how you can benefit from the secondary market, you can feel free to contact us because:
–  we can provide you with up-to-date information
–  we can assist you with investing
–  we can discuss different strategies you can try

For us, iuvo is a passion, and we know that for many of you it is as well. Take a look at what the experienced investors from the P2P Empire blog share about their experience with the platform here.

The satisfaction from profitable investments is here. Start today!

Related posts