Will Auto-Lend invest in businesses that I've already invested in?
If the Borrower has multiple loans
Maximum Diversification is by default enabled for all Auto-Lend plans. With this feature, if a borrower has an active loan that you are invested in, and a new loan for the same business is posted to the Marketplace, Auto-Lend will by default not invest in the new loan. This is to make sure that Auto-Lend keeps your portfolio well-diversified and does not increase your portfolio’s concentration in any individual borrower.
If the Borrower is refinancing their Lending Loop loan(s)
If the borrower’s new loan is being used to refinance all of their existing Lending Loop outstanding loan(s), Auto-Lend will invest in the new loan under the following conditions:
The Borrower’s new loan refinances all of their existing Lending Loop loan(s) upon Funding/Closing; and
You have an Auto-Lend plan created that meets the conditions of the new loan; and
You have the cash balance available in your account to meet your set dollar commitment per loan.
The end result of this process ensures that with Maximum Diversification enabled, you do not lend to the same business multiple times.