Reply To: 2.5%

Hi Maximus,

To confirm the economics on the product:

The SME pays 2.75% per month on the drawn balance. Investors receive a target return of approximately 14% per annum, net of fees.

The difference between the two is not margin. It absorbs the running cost of the product — credit losses on the book, servicing and collections, origination and card scheme costs, platform and administration, and the drag from utilisation, since the facility only earns while it is drawn. What is left after all of that is what supports the 14%.

Happy to walk through the build-up line by line if that would help. Contact us at assistance@marketlend.com.au

Marketlend team