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Lending always involves risks

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.

 

How we help to manage risk

Comply with regulation

We are fully authorised by the FCA and we make sure that we stay up to date with the changing regulatory landscape.

Carry out our role as a platform with care and diligence

We have high operational standards to make sure that we do what we have committed to do.

Be selective about the borrowers we accept

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.

 

 

Only offer asset-secured loans

So your money is backed by property, vehicles or business stock or an actual physical asset.

Use conservative loan-to-value ratios

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).

Keep lenders informed

By providing information on each loan and updates throughout the term so you can make informed decisions.

 

How you can manage your own risk

Diversify your lending

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

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

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

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 MoneyThing

Coming soon