This calculator allows related users (either friends or family) to connect online and negotiate a bilateral (i.e., peer to peer) loan. Think of the rich uncle who wants to pay for his niece’s dental school but can’t afford or doesn’t want to make a gift. Perhaps he is willing to lend his niece at a much better rate and terms than she can get elsewhere. This tool allows the pair to negotiate and agree on loan terms in a non-confrontational, transparent way. In this way, the burden of debt is reduced, and the uncle gets to support his niece in win-win way – she gets the money on better returns, and he earns a return while at the same time helping his niece. Our tool allows the uncle and his niece to run different loan terms and ultimately agree on final terms via the app.
Further, once the loan terms are finalized, they can manage the loan via TPE including managing repayment and any need to restructure the loan (these latter features future enhancements).
The process involves connecting your TPE account to your contact via email authentication. Both users must be registered. The loan must be fixed rate but can be any maturity/term and can be interest only or principal and interest.
To start the process of agreeing on loan terms either the borrower or lender would send a request to the other party. Simply enter the user’s email in the collaborator box and click the submit button. If the other party is registered with TPE they will receive the request and reply. Once the other party accepts the invitation, the initiating party will be informed that their connection has been completed.
Now the fun begins. The borrower or lender will use our calculator to share recommended loan terms. The other party can then either accept, reject, or revise the terms. Once this back and forth concludes with agreed loan terms, the parties formally agree and a loan certificate is created to document the loan. TPE does not get involved in the actual movement of money or processing the loan. We merely provide a platform for the two parties to use a real calculator and real numbers to determine an acceptable and affordable loan rate and to create a glidepath to negotiation that would otherwise be impossible absent the proper tools. The parties can also use our terrific, fixed income and loan dashboards to guide them determining appropriate fair terms.
It lets two related people — like family members or close friends — negotiate and formalize a private loan between themselves, such as a relative lending money at better terms than a borrower could get elsewhere.
One party sends a connection request by email; once both are registered and connected, either side can propose loan terms using the calculator, and the other can accept, reject, or revise them until both agree.
Loans must be fixed rate, but can have any maturity or term, and can be structured as interest-only or principal-and-interest.
No — TPE only provides the platform for negotiating and documenting fair loan terms, culminating in a loan certificate; the actual movement of money and loan servicing happens outside the platform.
The Fixed Income Dashboard and Consumer Loans Rates dashboard can help both parties benchmark what a fair rate looks like before finalizing terms.
