How does Harmoney earn its revenue?

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Harmoney is a peer-to-peer marketplace, helping everyday people borrow money from other everyday people. Harmoney is not the one lending the money, which means we don't generare revenue in the same way other financial instituions do. This page details the ins and outs of how we make money.

How does Harmoney earn its revenue?

Harmoney is a peer-to-peer marketplace, helping everyday people borrow money from other everyday people. Harmoney is not the one lending the money, which means we don't generate revenue in the same way other financial institutions do. This page details the ins and outs of how we make money.

We're not like other Financial Institutions

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Harmoney is a peer-to-peer marketplace and therefore acts as a broker enabling the value exchange between the funder and the Borrower.

Harmoney, therefore, is not the Lender, and does not receive interest income from Borrowers on loans. It earns fee income from Borrowers and from funders. The revenue streams are described below and further detail on individual fees can be seen on the Interest Rates and Fees page.

Revenue from Borrowers

Borrowers pay a Platform Fee on receipt of their loan funds. This applies to every new loan, including a re-written loan.

If a Borrower's payment is dishonoured, the Borrower is charged a dishonour fee. If the loan goes into arrears, the Borrower is charged an overdue fee for each month the loan is in arrears. These fees are charged to cover the additional costs of servicing Borrowers that are in arrears.

A monthly account maintenance fee will be introduced to Borrowers in the next few months.

All account maintenance fees and dishonour or overdue fees that are charged to a Borrower are passed through to Harmoney (in the form of a loan administration fee) via the Trustee making the loan for the Lenders.

If Harmoney incurs any legal or other costs in collecting on or enforcing a loan, these costs are payable by the Borrower.

Revenue from Retail Lenders

Retail Lenders pay a fee called the "Lender Fee" that is a percentage of gross interest received from Borrowers. The fee is paid to Harmoney for managing Borrower repayments and administering the loan for that Lender's benefit.

Retail Lenders who fund loans that have Payment Protect also pay the additional amounts detailed under "Lenders in Payment Protect Loans" below.

Revenue Wholesale Lenders

Wholesale Lenders pay a fee called the Service Fee that is a percentage of principal and interest they receive. The Service Fee is paid to Harmoney for managing Borrower repayments and administering the loan for that Lender’s benefit.

All account maintenance fees and dishonour or overdue fees that are charged to the Borrower are passed through to Harmoney (in the form of a loan administration fee) via the Trustee who makes the loan for the Lenders.

Wholesale Lenders pay a fee called a Note Fee for every note they participate in (i.e. for every $25 share of the loan principal). This fee helps recover the cost Harmoney incurred in marketing to Borrowers to take out a loan on the platform so it could be made available to Lenders to participate in.

Harmoney and Wholesale Lenders may agree other remuneration or financial arrangements.

Wholesale Lenders who fund loans that have Payment Protect also pay the additional amounts detailed under "Lenders in Payment Protect Loans" below.

Lenders in Payment Protect Loans

Lenders who fund a loan that has Payment Protect are charged (via the Trustee) a sales commission to Harmoney for arranging the sale of the Payment Protect. The commission is set at the industry standard rate for arranging the sale.

Lenders are also charged (via the Trustee) a management fee to Harmoney to conduct fair and transparent claims assessment and processing, effective complaint and dispute settlement procedures, and appropriate supervision of claims-related service.