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 has two main reasons: We have through the years seen a high degree of fluctuation on the funding side sometimes leading to loans being live longer than ideal on the site. Slow funding results in investors having reserved funds but not receiving interest rate. Also on the other side of the business, borrowers might need to purchase equipment at a fixed date and are therefore unable to wait for the full loan being 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.