The Secondary Market offers important benefits for active investors:
Fast Access to Liquidity
Selling loans on the Secondary Market (including at a discount) allows for the rapid conversion of an investment into cash, without waiting for full loan maturity. This is particularly useful for those who need funds urgently or want to reinvest in better opportunities.
Potentially Increased Returns
Buying loans at a price below their principal value offers additional profit in case the borrower continues repayments. The gap between the purchase price and the total amount repaid results in an effective return that may exceed the initial interest rate.
Risk Mitigation Through Diversification
By acquiring multiple loans at a discount, investors can reduce overall portfolio risk. The lower purchase price acts as a cushion against potential delays or defaults, offering added protection.