The Basics
What is Bigcarrots?
Bigcarrots.com is an online peer-to-peer marketplace where borrower members may borrow money and lender members may offer part of a loan listed on the marketplace. Bigcarrots is a leap back to a time when people formed credit communities to help themselves live better lives and earn a fair return on their money. Bigcarrots leverages this powerful concept of community responsibility and applies it to peer-to-peer lending-resulting in better interest rates for people that borrow and invest. Peer-to-peer lending eliminates the need for borrowers to go through a bank for a loan-and fewer middlemen means Bigcarrots lenders also benefit.
How do I Invest on Bigcarrots?
Direct Peer-to-Peer lending. Bigcarrots enables Direct P2P borrowers to request loans up to £25,000 by posting listings indicating the amount they want to borrow and the maximum interest rate they wish to pay. Lenders search for and select listings based on the borrower's Bigcarrots Rating, and other factors. Lenders bid on listings by indicating a minimum rate they are willing to accept. Bigcarrots handles all of the tasks needed for payment and collection of the loan.
Definitions of a borrower and a lender
A borrower is someone who has passed Bigcarrots's identity verification and is ready to create a listing. Bigcarrots borrowers can be any UK limited company registered in England Scotland or Wales at companies house. A lender is someone who has signed up to invest on Bigcarrots, and is ready to transfer in money and bid on loans. A lender can be any UK resident 18+ with a UK bank account and 3 years traceable address history
How do Bigcarrots loans work?
Borrowers can request loans up to £25,000 by posting listings indicating the amount they want to borrow and the maximum interest rate they wish to pay. Borrowers are asked to put the purpose of the loan, personalise the picture with one of themselves or their business and write a description about how they plan on using the loan. The credit information is pulled from a credit bureau. Bigcarrots does not verify the borrower's stated purpose of the loan.
Loans are from 3-36 months.
Lenders search for and select listings based on the borrower's Bigcarrots Rating, debt profile, and other factors. Through Bigcarrots's auction model, lenders bid on listings by indicating a minimum interest rate percentage they are willing to accept. Note that the interest rate percentage shown on the listing now does not include the 1% annual lending fee charged on successful loans.
About Trading loanbooks
Bigcarrots now offers you increased flexibility and liquidity in a secondary market with the ability sell your loanbook on the Reseller Platform. You can purchase a lenders loanbook for loans that are current and have not missed any payments.