Available loans on our platform are commonly split into two parts or ‘tranches’. Tranche information is located in the ‘Investment options’ section of each loan. At LendInvest, we call these portions of loans Tranche A and Tranche B.
Each tranche offers investors a fixed rate of return which reflects the different level of risk in each tranche. To reflect the priority in which tranche investors are paid, Tranche B investors will be entitled to receive a higher income rate than Tranche A investors in respect of the same loan.
In all tranches, the security for the loan remains exactly the same because the underwriting process has been done for the whole loan.