When an investor participates in a P2P loan, the usual expectation is to hold the position until maturity. However, situations can arise where an investor wants to adjust a portfolio before that date: recovering part of the capital, changing the allocation of investments, or finding another opportunity that fits better with their strategy. This is where a particularly relevant tool within the P2P ecosystem comes in: the secondary market.
Secondary Market in P2P Lending: What It Is and How It Works
When an investor participates in a P2P loan, the usual expectation is to hold the position until maturity. However, situations can arise where an investor wants to adjust a portfolio before that date: recovering part of the capital, changing the allocation of investments, or finding another opportunity that fits better with their strategy. This is where a particularly relevant tool within the P2P ecosystem comes in: the secondary market.
The secondary market allows investors to trade positions in loans that are already underway and offers an additional way to manage a crowdlending portfolio. It should not be confused with the primary market, where new loans are funded.
What is the secondary market in P2P lending?
The secondary market in P2P lending is a space within a platform where investors can buy or sell existing positions in loans.
In the primary market, the investor contributes capital to fund a new operation and, once the loan is active, that position can remain in the portfolio until maturity. The secondary market, by contrast, allows an investor to attempt to transfer their position to another investor before the original term ends.
The process introduces greater flexibility in portfolio management and makes it possible for capital to change hands without necessarily waiting for the loan's maturity.
How does a secondary market work?
The basic mechanism is straightforward. An investor who already holds a position can put it up for sale, and another interested investor can acquire it and take on the rights and conditions attached to that position. In general terms, the process can be summarised as follows:
- The investor holds a position in a loan.
- They decide to put it up for sale on the secondary market.
- They set the sale conditions available on the platform.
- Another investor finds the position and decides to buy it.
- Once the transaction is completed, the position passes to the new investor.
The main difference from the primary market, therefore, is that the buyer is not funding a new project but acquiring a position that another investor wants to sell in a loan that is already underway.
Primary market vs. secondary market
Primary market | Secondary market |
New loans are funded | Existing loans are traded |
The investor contributes capital to the project | An investor buys another investor's position |
A new investment is started | The ownership of an existing investment changes |
The position begins from origination | The position already has a payment history |
The term runs from the start of the loan | The buyer enters a loan that is already underway |
Both markets serve different functions, but they can complement each other within the same investment strategy.
Why can it be useful for an investor?
One of the main advantages of the secondary market is that it adds flexibility. An investor with several loans and different maturity dates who needs to adjust exposure before one of those dates can try to sell some of their positions.
It can also be used to reorganise a portfolio: reducing exposure to certain maturities or increasing diversification across projects, rather than waiting for every loan to reach its final date.
From the buyer's perspective, the appeal is different: it provides access to a loan that is already funded and may be in a more advanced stage of its cycle, with an observable payment history.
How does Maclear's Secondary Market work?
Maclear incorporates a Secondary Market for the buying and selling of certain positions between investors. Anyone who wants to sell a position can make it available to the platform's other users.
According to the conditions published by Maclear, the seller can set the price anywhere from face value down to a maximum discount of 50%. The price, therefore, does not have to match the original amount and can be used as a tool to facilitate a particular transaction.
The minimum amount for a transaction on the Secondary Market is €30. Listings also have a limited availability period: they expire after 14 days if the transaction is not completed. Investments received through a promotional code or bonus allocation cannot be listed on the secondary market.
Who pays the fees?
At Maclear, the buyer pays no fee to acquire a position. The seller pays a fee of 2.5% only when the sale is completed: if the listing expires without a buyer or the seller cancels it, no charge applies. This makes it possible to know the associated cost in advance, before putting a position up for sale.
Can any loan be sold immediately?
Not necessarily. The existence of a secondary market does not mean that every position can be sold at any moment: for a sale to be completed, another investor must be willing to buy under the published conditions.
This is an important distinction. The secondary market can increase the potential liquidity of an investment, but it does not guarantee an immediate exit. The ease of selling depends on factors such as the characteristics of the loan, the remaining term, the interest rate, the borrower's situation, the asking price and buyer interest.
What should a buyer check?
Before acquiring a position, it is worth reviewing the outstanding principal, the time remaining to maturity, the payment history, the interest rate, the conditions of the position, the purchase price, the borrower's situation and any guarantees attached to the operation, where they exist.
The price deserves particular attention. A position bought at a discount can offer a different return structure than the same loan acquired on the primary market, but the discount can reflect very different circumstances and should not automatically be read as a risk-free opportunity.
What happens after buying a position?
Once acquired, the buyer takes over the corresponding position in the loan and receives the outstanding payments according to the operation's schedule.
At Maclear, there is a 30-day lock-up period from the date of purchase before that position can be listed again on the secondary market. This should be taken into account when planning a portfolio, especially if the investor is seeking short-term flexibility. Once that period has passed, the position can be held to maturity or offered again once a buyer exists.
The secondary market as a portfolio management tool
Beyond the ability to sell, the secondary market can be understood as a tool for actively managing the composition of a P2P portfolio: adjusting maturities, changing the distribution across projects, or freeing up capital from certain positions.
This becomes especially relevant as a portfolio grows. An investor with few positions can simply wait for their maturities, but when there are numerous loans with different dates, amounts and characteristics, having an additional channel to reorganise the portfolio adds flexibility. It also allows for different strategies: holding loans to maturity or periodically adjusting exposure.
What risks should be taken into account?
The secondary market does not eliminate the risks inherent to P2P lending. The main practical consideration is the availability of buyers: a position can be listed and remain unsold if there is not enough demand.
It is also worth remembering that selling before maturity can happen at a price different from face value and that, depending on the conditions, the investor may accept a discount to facilitate the transaction. Before using the secondary market, it is worth considering the price, the remaining term and the characteristics of the loan.
Key takeaways
- The secondary market allows investors to trade existing positions; the primary market funds new loans.
- At Maclear, the seller sets the price anywhere from face value down to a 50% discount, with a minimum amount of €30 per transaction.
- Listings expire after 14 days if they do not find a buyer, and the seller pays a 2.5% fee only when the sale is completed.
- The buyer pays no fee, but cannot resell the position during the 30 days following the purchase.
- More potential liquidity does not mean guaranteed liquidity: a sale depends on a buyer existing under the published conditions.
Conclusion
The secondary market in P2P lending allows investors to trade existing loan positions with one another. Its main contribution is flexibility: the investor does not have to limit themselves to holding every position until maturity but can attempt to sell them or acquire others that are already up and running.
At Maclear, the Secondary Market allows investors to buy and sell existing positions from €30, with no fee for the buyer and a 2.5% fee for the seller when the transaction is completed. The key point to understand is that more potential liquidity does not mean guaranteed liquidity: how it works depends on buyers existing and on the specific conditions of each transaction.
About Maclear
Maclear AG is a P2P lending and crowdlending platform based in Switzerland. The company operates as a financial intermediary in the non-banking sector and is a member of PolyReg SRO, in compliance with Swiss financial regulations, including AML, KYC and GDPR rules. Maclear offers retail and qualified investors access to verified business loan opportunities, with integrated risk assessment, a Provision Fund and a Secondary Market to provide liquidity.
RISK WARNING. P2P lending carries significant risk, including the potential loss of capital. Borrowers may default, and you could lose part or all of your investment. Past performance does not guarantee future results. Investments are not covered by any deposit guarantee scheme. This content is for educational purposes only and does not constitute financial, investment or legal advice. Consult a qualified financial adviser before investing. Maclear AG is a Swiss crowdlending platform, a member of PolyReg, a self-regulatory organisation supervised by FINMA.