Investing

Assessing Risk and Setting Interest Rates


  • Peerform is focused on serving the needs of accredited investors. In that spirit, a highly advanced algorithm is used for pricing loans, setting the new standard for the industry’s most sophisticated participants.

    The algorithm is constantly being updated and perfected. It uses empirical methods, rather than “filters” in order to better calculate consumer credit risk. As a result, the Peerform Loan Analyzer can enroll additional borrowers with more accurate pricing than the other traditional consumer lending platforms. This innovation represents another way to deliver exceptional value to investor clients.









    Peerform loans are made by Cross River Bank, whose credit policy provides the underwriting criteria for all loans listed on the Peerform platform.. Under the current credit policy, prospective borrower members must have:

    • A minimum FICO score of 600 (as reported by a consumer reporting agency).
    • A debt-to-income ratio below 40% as calculated by Peerform, based on (i) the debt (not including mortgage debt) reported by a consumer reporting agency; and (ii) the income reported by the borrower member, which is verified with two most recent paystubs and tax documentation.
    • A credit profile (as reported by a consumer reporting agency) without any current delinquencies, a recent bankruptcy, tax liens, judgments or non-medical related collections opened within the last 12 months, and reflecting:
    • A minimum of one open bank account
    • A minimum of one revolving account ever opened

















    Based on each loan application and credit report of the borrower, Peerform's proprietary credit model assigns a grade to the application. An uncertainty premium that varies by Peerform loan grades is built into the interest rates. Loan grades and the corresponding interest rates are shown in the following table:

    • Peerform GradeInterest RateAPR*
      AAA 5.32 % 5.99 %   
      AA+ 7.49 % 8.86 %   
      AA 8.99 % 11.08 %   
      A+ 10.49 % 14.06 %   
      A 11.99 % 15.59 %   
      BBB 13.49 % 17.13 %   
      BB+ 14.99 % 18.66 %   
      BB 16.49 % 20.19 %   
      B+ 18.49 % 22.24 %   
      B 19.99 % 23.77 %   
      CCC 21.49 % 25.31 %   
      CC+ 22.99 % 26.84 %   
      CC 23.99 % 27.87 %   
      C+ 24.99 % 28.89 %   
      C 25.49 % 29.40 %   
      DDD 26.06 % 29.99 %   


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This is not an offer to purchase securities.

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