Leap, when deciding which suggested rate to offer reviews the following factors: economic conditions (strength of the economy, fiscal and monetary policy, inflation, credit conditions), credit and investment seasonality (holiday season, tax season, start of school year, etc.), management of our marketplace liquidity and matching time (supply of investors’ funds versus borrowers’ demand), borrowers’ risk profile and competitive offers.
There is a balance between all these factors that is key to the suggested rate we offer. For example, if we increase investors’ rate, borrowers’ overall rate will increase, potentially reducing borrowers demand. Inversely, lowering investors’ rate could create an excess of loans to be funded relative to the availability of funds, hence resulting in longer wait times for borrowers and investors.
We review the suggested rate on a weekly basis. Please note that a review does not mean an automatic adjustment of the rate i.e the rates are subject to change, but they could remain at the same levels post-review.