Investment liquidity

The secondary market is the main tool for ensuring investment liquidity. Here, investors can buy and sell investments in already granted loans, meaning the rights to receive future payments. If an investor needs to recover their funds more quickly, they can sell their investment to other platform users. The new owner of the investment assumes all related rights and continues to earn interest.

Transactions on the secondary market occur directly between investors. This agreement between the seller and buyer of the investment is based on one party’s expectation of profit, while both parties assume the risks associated with the sale or purchase. Granted loans can be sold at a premium (when the loan is sold for more than the remaining principal), at a discount (when sold for less than the remaining principal), or at the residual investment amount.

People decide to sell their investments for various reasons. One of the most common is unforeseen financial needs and the desire to recover invested funds more quickly. Loans are also sold not only out of necessity but often as a strategic decision, such as aiming to earn a premium or to divest from loans that are no longer attractive, do not meet investment goals, or have started to delay payments. The secondary market allows for more flexible investment management and quick responses to changing circumstances.

The secondary market provides opportunities to acquire various loans — from short-term to long-term, with different interest rates and remaining loan balances. In some cases, investors find more attractive offers here than in the primary market. Loans can be purchased at a discount — cheaper than the original investment — or at a premium, which can be justified by the expected future investment return. The more attractive the loan — high interest rates, short term, and timely repayments — the higher the potential premium. Conversely, the longer a loan is overdue or if it has been sent to legal recovery, the greater the discount you can expect, but this also involves the risk that the debt may not be recovered or that the process will take a long time.

When choosing an investment platform, it is important to consider whether it offers a secondary market and how active that market is. The more active the secondary market, the higher the likelihood of investment liquidity. Conversely, low trading activity can be an early warning that it may be difficult to sell your investments when needed.

SAVY actively participates in the secondary market, providing investors with more opportunities to ensure liquidity. The platform both buys investments from other investors and sells its own claims, contributing to greater supply and demand.

About 35% of all SAVY investors actively participate in the secondary market. A stable and investor-friendly trend is that approximately 65% of all transactions are made at a premium, around 15% at the investment price, and only about 20% at a discount. This indicates that the rights to already granted loans can be sold quite easily, usually without losses, and often even with additional profit.

Fees are applied only when investments are sold on the secondary market. The amount depends on the loan’s status. If the loan agreement is not terminated — meaning the loan is being repaid on time, is overdue, or is under pre-litigation collection — a 1% fee is charged on the transaction amount. If the loan agreement is terminated, that is, the loan has been sent to legal collection, a 3% fee applies. These fees are charged to the seller, but the platform deducts them from the amount paid by the buyer.