Whenever you lend money there are risks involved. Different lending platforms have different approaches to risk management. We take the view that while lenders are responsible for managing their own risk, there are things that we can do in our role as a platform to help lenders make informed decisions.
Peer-to-peer lending is not covered by the Financial Services Compensation Scheme and your capital is at risk if you choose to lend through MoneyThing.
We are fully authorised by the FCA and we make sure that we stay up to date with the changing regulatory landscape.
We have high operational standards to make sure that we do what we have committed to do.
We make our lending decisions on a case-by-case basis once we have understood the borrower and the potential risks. If we are not comfortable, then we don’t offer the loan on the platform.
So your money is backed by property, vehicles or business stock or an actual physical asset.
Our LTV’s are based on current valuations and are appropriate for the asset type (up to 70% for property and typically up to 65% for other asset types).
By providing information on each loan and updates throughout the term so you can make informed decisions.
Diversify your lending cross a number of different loans. We believe in the old saying ‘don’t put all your eggs in one basket’ and we recommend lenders spread their lending across a number of loans to manage risk.
Choose a reputable P2P platform that is regulated by the FCA and is transparent about its performance and publishes its loan book statistics. We publish our statistics here.
Make informed decisions by ensuring that you have been provided with adequate information about the borrower and loan that you are making.
Set your own lending criteria and only lend against loans that you are comfortable with. We have lenders that will only lend against property, because they best understand that sector. Others like lending against cars or personal assets and others prefer to have a range of loans.
Our guide to lending with MoneyThingComing soon