We outline below the ThinCats policy for loans listed on the platform which are underwritten by ESF.
Where a loan is underwritten by ESF, they may also choose to take a minimum investment in the loan. Details of this will be set out in the information pack which is available to lenders.
In this instance, once the auction has been opened to all lenders, ESF will place their bid for the minimum investment amount, and other lenders are free to place their bids right up until the end of the auction. We acknowledge that some lenders choose not to place a bid on an auction until towards the end of the auction period so as not to tie up their capital, so any sums required from the underwriter to ensure that the loan meets its required amount or drawdown will be pledged after the auction has closed. If the auction reaches the close with a shortfall, it will then be reopened for a short period of time just to allow the underwriter to pledge the sum required to fill the loan.
Should the auction be reopened for any other reason, such as an extension of the auction period, notification will be issued to all lenders.
In adopting this policy, all lenders will have the same opportunities to invest in underwritten loans.