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What is the Secondary Market?

The Secondary Market is a bulletin board which allows you to buy and sell Shojin investments that have been fully funded after the initial launch. 

If you hold an investment and wish to exit a project early, you can find a buyer in the marketplace to buy all or part of your investment. As a buyer, this enables you to participate in ongoing projects and start earning instantly, instead of waiting for new ones to launch on the Shojin investor portal.

Taking more control of the timing of your investment allows you to mitigate your risk. With the secondary market, you can both reduce your exposure when you need to release funds and increase your diversification by investing into multiple projects. With flexible pricing and negotiation features, sellers and buyers are able to efficiently agree the best price that works for both parties.

Ultimately the pricing on the secondary market is determined by the sellers and buyers. An explanation to assist with pricing implications of debt investments can be found here.

As this is a new feature on the investor portal, please get in touch at invest@shojin.co.uk with your feedback or any issues encountered so that we continue to enhance the user experience.

How does it work?

For a typical Shojin debt investment, £1 invested is equal to 1 unit. Currently, there is a minimum listing and purchase of 100 units for the majority of investments and a seller cannot be left with fewer units than they can list.

As a seller, you set your price and list either all or some of your units of a given investment on the secondary market - this is made immediately available to potential buyers.

At this point, buyers make offers – they can accept your terms or negotiate on the price or number of units.

If the price is accepted but the number of units is fewer than listed, the seller can accept or reject the offer. If accepted, the remaining units are automatically returned to the secondary market for other buyers to make offers.

If a buyer counter offers the price, the seller can accept, reject or counter offer it one final time. If the seller counter offers, the buyer can either accept or reject the final price. Counter offers bring together the seller’s and buyer’s prices for an agreement to be made.

Buyers and sellers have 48 hours to either accept or reject a counter offer, otherwise the transaction times out and the units placed back on the market for other buyers.



Investors

Investors are no longer locked in for the entire duration of the project, creating liquidity and confidence.

Sellers

Sellers can now exit early with profits, release capital for upcoming expenses and diversify their risks.

Buyers

Buyers can now participate in more projects, control their risk exposure at different project phases and look to bag a bargain.

How to sell

1

CREATE LISTING

Choose the maximum number of units you would like to sell and a unit price. 

2

LIST ON MARKET

Check the final sales price, agree to the Secondary Market Terms & Conditions and submit your listing. Buyers will now see your listing on the secondary market and make offers. 

3

NEGOTIATE THE SALE

A buyer can accept your terms or negotiate on the price or number of units. You can accept their offer, reject or counter offer back for them to finally accept or reject your latest proposed price. Buyers and sellers have 48-hour windows to make their decisions. 

4

SALE COMPLETE

When your terms or counter offer is accepted, funds will be transferred directly into your Shojin wallet less any fees. 

How to buy

1

Clear funds

To make an offer, you must have enough funds in your Shojin wallet to meet the seller's initial asking price for the number of units you have selected to purchase. 

2

Select investments

See all investments for sale on the secondary market and select the number of units and price you would like to purchase of a specific project, agree to the Secondary Market Terms & Conditions and make an offer.

3

NEGOTIATE THE SALE

The seller will choose to accept your offer or come back with a counter offer for you to accept or reject within a 48-hour window. 

4

PURCHASE COMPLETE

When your offered price or counter offer is accepted, funds will be transferred directly to the seller and you become the new owner of the investment.  

Secondary Market FAQs

Are there any fees to use the secondary market?
How long will my investment be listed for?
What if my investment doesn’t sell?
Can I post my investment for sale at any time?
Can I sell/buy on the secondary market using my ISA?
Can I invest via a pledge?
Is there a minimum / maximum listing price?
What happens if the buyer/seller doesn’t respond?
At what unit price should I buy or sell at?
I have received many offers from buyers for my units – can I counter offer them all to get the best price?
Will I get taxed for buying and selling on the secondary market?
As a buyer can I make multiple offers at once?
Can I withdraw my offer to buy or counter offer to sell?
How do I get notified if someone has made, counter offered, or rejected an offer?