As many Lending Club investors have experienced, the amount of notes available for funding on a day to day basis varies greatly depending on note issuance and the choices of other investors on the platform. Specifically, as large investors are starting to increase their purchases on Lending Club, note availability for certain kinds of notes can become restricted. Showing this in general is the chart below:
This is a chart showing the 250-previous-note (rolling average) days in funding for all notes on Lending Club. This chart was generated for Jan 2008 – August 2011. In simple terms, this is a chart showing times when it is easier to invest (high points) and harder to invest (low points). At the lowest point on the chart, the average time in funding for notes on Lending Club was approximately 5 days. At the highest points, the time in funding was at or greater than 12 days.
As time goes on and Lending Club becomes more popular, tracking this data will become increasingly important – especially for specific Grades of notes. If the average time in funding for certain types of notes falls below several days, many investors could be caught off guard and could miss investing in the notes of their choice.
Starting soon, this data will be provided in real time, on a weekly basis, for subscribers.