Lending Club full of trading patterns

WebBank, an American federal deposit insurance corporation guarantees the Utah charter industrial bank) will grant loans to borrowers, at the same time, WebBank sell bonds to Lending Club, Lending Club again to sell the creditor's rights in the form of usufruct credentials to STD seamless steel pipe ASME B36.10m tube lenders (individual and institutional investors) to complete the loan deal.
Through this kind of trading patterns, lenders will actually be Lending Club the unsecured creditors of the company, and redemption situation depends on the situation of the repayment of the investment by the lenders loan customers. When customer default borrowing, Lending Club will not compensate for lenders, customers will alone bear the total loss of investment.

From the above information, it seems, Lending Club play the role of a medium in the transaction, providing both the exchange to be the carrier of information and transaction, does not provide other services astm a234 seamless carbon steel tee related to the financing guarantee extra, but this does not mean that lend the user has no way to deal with their overdue loans. In fact, Lending Club to the user through cooperation with Foliofn launched online trading platform, the creditor's rights can give you a discount on the creditor's rights trading platform to sell their loans, and some of the more professional investors through the analysis of historical data and accurate calculation and judgment, to expand their profit margins by acquisition of bad debts. Statistics show, in Foliofn debt trading platform, 16 days overdue debt American carbon steel eccentric reducer almost always sold under a discount of 10%, and the 16 days to 30 days overdue creditor's rights is often can clinch a deal with the discount rate of 30%.

This is Lending Club full of trading patterns. Which can guarantee the efficiency of the trading mechanism is the core elements including - independent of trading and have quite a credibility credit reporting bureau, effective non-standard asset securitisation and ability according to the historical data to correctly calculate the risk level of professional investors, those investors not only in Lending in the Club for effective risk diversification, also by other types of investment projects, the entire portfolio of risk management in an appropriate level, and this is usually small individual investors is difficult to do).

To look at the situation in China, due to the personal credit system's lag (compared with the development of less time for nearly 200 years), and the lack of substantial credibility completely commercial agency, can provide lending platform from a third party's credit rating, loan customer credit information collection, review and subsequent processing, ratings, etc. All work should be finished by the platform. According to the introduction, the platform of the profit mainly comes from the service fees charged by the after clinch a deal. So, if do not have to the platform under the condition of bad debt burden of any liability, the platform is to stimulate a deal as much as possible, and this will inevitably affect the fairness of the credit scores and grades. In the long run, will contain huge moral hazard.

On the other hand, due to a lack of focus on individual creditor's rights investment professional domestic investors, and all the data and information is used to measure risk are provided from the medium of exchange platform for the borrowing, but not exclusively at fair third-party trading, investors will be difficult to have the ability to make the investment decision is not affected by the platform. In addition, the general investors in handling overdue loans of the lack of ability and experience, would be likely to cause other risks. And, because of the different regulatory mechanisms, at this point in time in office on any platform by a deal of securitization of creditor's rights cannot be effectively, lead to a more professional institutional investors to participate in trading.