How Many Loans, How Many Borrowers: Reading Your Concentration

500 USD divided by the 100 USD minimum gives five positions, assuming each receives the minimum. With five different borrowers and equal allocations, each accounts for 20% of invested capital. Fewer available projects, repeated borrowers, or a larger allocation to one loan can increase that share.

The limit is structural. Even five separate borrowers may share an industry or repayment period.

8lends sets no platform-wide maximum investment per project; the upper limit is the project's remaining pool. A large borrower exposure can therefore remain within platform rules.

Calculate borrower concentration using:

Borrower share (%) = Total outstanding principal with that borrower ÷ Total outstanding loan principal in the portfolio × 100

Use figures from the same date, excluding uninvested cash and interest received. Update both totals after principal repayments.

For example, a hypothetical 1,000 USD portfolio can hold at most ten positions at the 100 USD minimum. Suppose it holds ten such positions: two with Borrower A and eight with separate borrowers. Each position represents 10% of the portfolio, but Borrower A’s two loans together account for 200 USD:

Borrower A’s share = 200 USD ÷ 1,000 USD × 100 = 20%

The other eight borrowers account for the remaining 800 USD, or 80%. There are ten positions but only nine borrowers, so treating Borrower A’s exposure as 10% would understate the concentration.

Apply the same formula to an industry, country, rating, or repayment period by adding the outstanding principal in that category and dividing it by the portfolio total. If the loan card does not disclose the industry or country, record it as unknown. The platform operator’s address does not establish the borrower’s country.

Two 100 USD positions with the same borrower create 200 USD of exposure while both remain outstanding. A new listing indicates that the borrower has applied again and passed selection for another offering. For an existing investor, it also creates an opportunity to increase an exposure already held.

Is holding two loans from the same borrower a form of concentration?

Yes. Separate contracts, rates, or repayment dates do not create separate borrower identities. Financial trouble at the business can affect its ability to repay both loans, even when their contractual terms differ.

Add existing exposure before assessing the new position. Exclude earlier loans already fully repaid.

Does a repeat borrower carry less risk than a new one?

Repeat status alone does not establish lower risk. Previous repayments can provide useful history, but the business's finances and obligations may have changed. 8lends does not publish whether every repeat application goes through the full due diligence cycle again.

Due diligence can reduce the likelihood of admitting an unreliable borrower; it cannot eliminate default risk. Check the current offering's disclosures.

Two loans with the same borrower are two positions, not two independent risks — their combined share of the portfolio is the number to track, and reappearing on the marketplace is not confirmation that a borrower carries lower risk the second time.

Twenty positions can still place most capital in one rating category or repayment window. Repeated choices accumulate: familiar borrowers receive additional allocations, or loans with similar terms become the default selection.

Borrower concentration risk may decline while another concentration rises. Several businesses in one industry can face the same demand shock. Loans in one country can share economic pressures. A cluster of repayment dates makes the investor's expected cash availability depend on several repayments arriving around the same time.

For loan terms of 4–16 months, record scheduled repayment dates too. Equal-duration loans can mature months apart. Grouping loan concentration by calendar month shows when principal is expected back.

Start with one row per position and these seven checks:

• 1.Borrower identifier or name, consistent across repeat loans.
• 2.Amount invested and principal still outstanding.
• 3.Credit rating, AAA–D, recorded at investment.
• 4.Loan term and scheduled principal repayment date.
• 5.Borrower industry, if disclosed in the loan card.
• 6.Borrower country, if disclosed.
• 7.Periodic recalculation of the largest individual borrower's portfolio share.

8lends does not publish an aggregate platform breakdown by industry, borrower country, or repeat-borrower share. The record above measures the investor's own holdings; it cannot establish how representative they are of the platform's loan book.

How often should an investor recalculate their concentration?

Recalculate after an investment, principal repayment, or completed sale. A monthly review is also a practical habit, rather than a platform requirement. Keep earlier snapshots to see whether the largest exposure is growing.

On the 8lends Secondary Market, only whole positions in the Funded stage can be sold. Partial sales are unsupported, so a single large position cannot be trimmed by half. An investor must sell that position in full if a buyer is found, or retain the claim while awaiting repayment, subject to borrower performance. Where exposure comprises multiple positions, selling one whole eligible position can reduce the combined borrower share.

8lends is operated by CLEARCHAIN CORP, a Canadian company registered with FINTRAC as a Money Services Business (registration No. C100001102). Maclear AG (Switzerland), a member of PolyReg SRO, acts as the independent Collateral Agent — it does not operate the platform, is not its parent company, and does not hold investor funds.

Investing involves risk, including possible loss of principal. Returns are not guaranteed.