How do lenders use FundColony’s marketplace?

Lenders sign up to invest in the FundColony’s marketplace, fund their wallets and then select loans from the marketplace to invest. Each lender makes offers the amount and rate they are willing to lend to the borrower(s). The borrower(s) then either accept or rejects the offer. We encourage lenders to always spread their funds across several loans and avoid putting a huge sum at a time on any one loan. By using this method, we give our Lenders the ability to diversify their investments over hundreds or even thousands of loans. It also means that each loan is typically funded by several Lenders.

When borrowers make monthly repayments to Lenders via FundColony. These repayments are paid into the individual Lenders’ wallet as principal and interest payments. Lenders can then either re-invest or withdraw their funds.

How it works

FundColony is marketplace where people and organisations directly lend to individuals and small & medium sized businesses in Nigeria, helping support the core the economy. FundColony sources the same information on borrowers that banks use from sources like credit bureaus. Borrowers are identity checked and our experienced credit assessment team review all applications before they are posted onto the marketplace.

We only allow established and creditworthy borrowers into the community. Investors then lend directly to borrowers, spreading their money across several borrowers to spread their risk. Individual investors will typically fund a small proportion of each loan on the marketplace, whereas larger accredited investors will fund an entire loan on the marketplace.

FundColony then manages the monthly repayments from the borrowers back to the investors. FundColony also provides account management and reporting tools for investors. If payments are missed FundColony in-house collections and recoveries team will chase borrowers.

Businesses can borrow from lots of different investors or from one larger investor offering them the whole amount. Interest rates are set by each investor based on a few factors including the risk band and term of the loan. The risk band is given to the loan during FundColony credit assessment.

We help our borrowers get a fair deal and our lenders get better returns on their investment.