The terms used in this risk statement are defined in the Money Platform Service Terms.
The Money Platform is not a party to those Loan Contracts, but agrees to administer them under the terms of The Money Platform Service Terms. If we were to cease trading for any reason, the Loan Contracts will remain enforceable. The fees payable under the Loan Contracts would be sufficient to cover the cost of administering them during any winding down process if we were to cease trading for any reason.
We carry out identity checks on Lenders and Borrowers, and assess each Borrower’s creditworthiness and ability to afford to borrow under the Loan Contracts according to credit bureau data and information provided to us by Borrowers. These checks must be satisfied before funds will be paid out to Borrowers. Any unlent funds are held by the Payment Service Provider separately form its own funds under the terms of the Payment Services Agreement, pending disbursement to Borrowers.
Repayments due from Borrowers are also received and processed by the Payment Service Provider, based on data we provide to the Payment Service Provider from our system in relation to the Loan Contracts and related The Money Platform Accounts.
The expected default rate for The Money Platform is estimated to be 15% of all loans made via the platform, based on modelled default rates on historic loan data tested on The Money Platform’s current lending criteria. Please note that the target default percentage is not the percentage of borrowers that miss payments but the final loss rate after all collection avenues have closed and repayment plans have completed.
Your estimated annual rate of return is 8%, taking into account fees, default rates and taxation on the interest you receive. The amount of income tax payable by you is dependent on your individual circumstances and may be subject to change in the future.
You do not have recourse to the Financial Services Compensation Scheme.
As a lender, any loan you make is unsecured. Your capital is at risk.