Many who get started in peer-to-peer lending are initially quite excited and get hooked on spending time reviewing loans, studying filter criteria, and settling on an investment strategy. As most users start to filter notes though, they quickly hit a roadblock – good notes are really hard to find. In fact, many of the best notes are now funded in literally seconds, leaving retail investors who use Lending Club’s primary filters in the dark.
For most, the question soon becomes, ‘when are the best times to find new loans on Lending Club?’ Lending Club’s policy on this is that they add new notes four times a day, at 6am, 10am, 2pm, and 6pm Pacific Time. I can say from my personal experience that there is a marked difference in the loans I find available to my filters right at those times, so it really does make a difference if you are looking for good notes to check the platform at those specific times. Beyond that though, note volume can vary quite a bit depending on the day of the week, and even the day of the month.
Specifically, I’d draw your attention to the 2H 2013 overview that Anil Gupta recently posted on his fantastic blog, PeerCube. I won’t post the specific charts and graphs that Anil’s compiled – head over to his site to check them out – but they make for a fascinating read. Specifically, it seems that investors would do well to follow a few pieces of advice when deciding when to look for new loans:
1. The secret of peer to peer investing is out, and investor demand is growing at a faster clip than borrower supply. Despite dramatic increases in loan volume on Lending Club’s part, you face fierce competition from the investor community for high quality notes.
2. Sunday is the best day to invest, even though the fewest new loans are released on this day. After that Monday, and after that, Wednesday.
3. Friday is by far the worst day to try and invest, where competition vs. availability is highest.
4. There’s not a big difference in the specific time of day you choose to invest, but unsurprisingly, 6am is when competition vs. availability is lowest. The worst time of the day to invest is 2pm, even though this is when the most new loans are released.