An early disbursement is when we issue a loan before it’s being fully funded. In our agreements, we stipulate two levels: a maximum amount and a minimum amount to be funded and the amount indicated on the loan offer page is the maximum amount to be funded.
Early disbursement is implemented for two main reasons:
Funding Fluctuations: Over the years, we have observed significant fluctuations in funding speed, which sometimes causes loans to remain on our site longer than ideal. This slow funding means that investors might have their funds reserved without earning interest during this period.
Borrower Needs: Borrowers may need to purchase equipment or meet other deadlines by a specific date. In these cases, they cannot afford to wait until the entire loan amount is funded.
In such events, we send out an email notifying you that the loan is closing early in order for an early disbursement to happen.
If you have any questions or concerns, we are here to help. Reach out to us at hello@trine.com.