Sidley lawyers have been actively involved in online marketplace lending since the first days of the industry, beginning with the loan origination side. Representing a key business partner of the two initial U.S. online peer-to-peer consumer lending platforms, we advised on the structure, regulation and disclosures of the lending process. As these and other online marketplace lending platforms became operational, our lawyers partnered with fund investors and banks to set up forward flow purchase programs. Our work included the negotiation and documentation of loan purchase and loan servicing agreements, the review of legal regulatory compliance by the platforms, and the formation of purchasing and origination entities with considerations towards tax efficiency, regulatory compliance and maximum flexibility for financing.
“Substantial experience handing transactions involving consumer asset classes, such as online lending, acting for issuers, underwriters and purchasers. Increasingly active advising on CMBS and RMBS, as well as auto loans, CLOs and marketplace lending deals.”
Chambers USA, Nationwide Securitization, 2018
Building upon our decades of structured finance experience, Sidley advised and continues to advise platforms, investors and lenders in warehouse financings, and issuers and underwriters in securitizations, of online marketplace loans, including Unsecured Consumer Loans, Small Business Loans and Merchant Cash Advances and Point of Sale Loans and Retail Installment Sales Contracts. We represent clients in building consumer lending platforms in this space and have been involved in more than 17 different marketplace lending platforms in the U.S., Europe and the Asia Pacific region.
Our team also harnesses the talents of Sidley’s practitioners across many legal disciplines applicable to the online marketplace lending industry. We work closely with colleagues in the firm’s Global Finance; Investment Funds; Emerging Companies and Venture Capital; Banking and Financial Services; Securities Enforcement and Regulatory; Tax; Blockchain and Privacy and Cybersecurity practices to provide high-quality legal advice that spans myriad types of complex matters.
