Ratesetter yesterday added more choices. Borrowers can select loan terms of up to 5 years.  Lenders can invest money for 1 or 5 years (in addition to the existing monthly access and 3 year term choices). It is interesting that Ratesetter has decoupled the borrower’s products from the lender’s products. For a borrower loan with an 18 month term there is no directly matching lender product. Ratesetter will combine funds invested in monthly access with money invested in 1 year bonds to fund these loans.

Bottom line of this, as I see it, is that Ratesetter will steer towards more active management of the money invested. Unlike other p2p lending marketplaces that act more like a platform, but where the users alone make the investment decisions, Ratesetter will directly take action.