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Lender's Risk Summary

Estimated reading time: 2 min

Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be high risk.

What are the key risks?

  1. You could lose the money you invest
    • Many peer-to-peer (P2P) loans are made to borrowers who can't borrow money from traditional lenders such as banks. These borrowers have a higher risk of not paying you back.
    • Advertised rates of return aren't guaranteed. If a borrower doesn't pay you back as agreed, you could earn less money than expected. A higher advertised rate of return means a higher risk of losing your money.
    • These investments can be held in an Innovative Finance ISA (IFISA). An IFISA does not reduce the risk of the investment or protect you from losses, so you can still lose all your money. It only means that any potential gains from your investment will be tax free.
  2. You are unlikely to get your money back quickly
    • Some P2P loans last for several years. You should be prepared to wait for your money to be returned even if the borrower repays on time.
    • Some platforms may give you the opportunity to sell your investment early through a 'secondary market', but there is no guarantee you will be able to find someone willing to buy. .
    • Even if your agreement is advertised as affording early access to your money, you will only get your money early if someone else wants to buy your loan(s). If no one wants to buy, it could take longer to get your money back.
  3. Don't put all your eggs in one basket
    • Putting all your money into a single business or type of investment for example, is risky. Spreading your money across different investments makes you less dependent on any one to do well.
    • A good rule of thumb is not to invest more than 10% of your money in high-risk investments.
  4. The P2P platform could fail
    • If the platform fails, it may be impossible for you to collect money on your loan. It could take years to get your money back, or you may not get it back at all. Even if the platform has plans in place to prevent this, they may not work in a disorderly failure
  5. You are unlikely to be protected if something goes wrong
    • The Financial Services Compensation Scheme (FSCS), in relation to claims against failed regulated firms, does not cover investments in P2P loans. You may be able to claim if you received regulated advice to invest in P2P, and the adviser has since failed. Try the FSCS investment protection checker here.
    • Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA-regulated platform, FOS may be able to consider it. Learn more about FOS protection here.

If you are interested in learning more about how to protect yourself, visit the FCA's website here.

For further information about investment-based crowdfunding, visit the FCA's website here.

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The Future of Lending

As a lender, any loan you make is unsecured. Your capital is at risk.Your money will only ever be lent to individuals who have passed our rigorous credit and affordability checks. Please read our Lenders' Risk Statement and Outcomes statement below.‍

Lenders' Risk StatementOutcomes Statement
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A risk dial demonstrating the various levels of risk

Risk Management

Borrowers are fully vetted and our bespoke credit model, TMP Score, ensures that your money is only lent out to those who can afford it.

Investors analysing their loan performance

Diversification

Diversification is important to mitigate the risk of default. *95% of lenders who have funded more than 10 loans have recorded profitable returns overall.

*Data as at 1.11.23. All loans written since 1.7.18 when the current version of TMP Score was introduced. Excludes loans less than 6 months old

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Privacy

Your name is never revealed to your borrower, and all loans are made anonymously.

Lending MoneyHow it works?Performance FiguresCase Study

Lending on The
Money Platform

We offer an innovative approach to investing: peer to peer lending in the UK - connecting people through our platform in a way that benefits everyone.

Our mission is to make lending more accessible and rewarding, not just for a select few, but for all. With our user-friendly platform, lenders can easily invest their funds, enjoying attractive returns, while borrowers gain access to fair and transparent loans. This peer to peer lending model ensures a community-driven financial ecosystem, where your investments directly support fellow UK residents.

We're not just a lending platform; we're a movement towards financial empowerment and inclusivity.

By choosing The Money Platform, you're participating in a financial revolution that's reshaping the UK's lending landscape, making it more equitable and efficient for all. Join us and experience the future of peer to peer lending in the UK.

Begin Registration
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The Money Platform won the financial inclusion award and was nominated for the ethical lender of the year in 2023

How it works?

An anonymous investor and a registration form.

1

Complete the Registration Process

This involves providing personal details, self-classifying your investor status, passing an appropriateness test to show you understand the risks of investing, and undergoing Know Your Customer (KYC) checks.

A timer for the investor registration process.

2

24-Hour Cooling-Off Period & Approval

Following registration, there is a 24-hour cooling-off period. This is a regulatory requirement designed to give you some time to consider the decision and ensure it suits your financial objectives. Once the cooling-off period has elapsed, your account will be enabled for lending.

Money to be used as a deposit

3

Fund Your Account & Select Loan Offers

Make your first deposit and choose which loan amounts you would like to offer to the borrowers on our platform. Once your offers have been enabled, your funds will join the queue and your first loan will be funded shortly after.

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4

Analyse
Loan Performance

Loan performance can be analysed via the personalised lender stats dashboard on your online account. Alternatively, you can always download portfolio data into Excel and apply your own analysis to the raw data.

Key Performance Figures

2,500+
Registered Investors
15.4% p.a
Forecasted Gross Return 23-24
View Our Outcomes Statement

Case Studies

An investor on The Money Platform

Lender K lives in Yorkshire. He started lending in 2016 with a deposit of £1k. Over time he has invested a total of £50k and has made withdrawals of c.£27k. He automatically reinvests his loan repayments received (which he can switch on and off whenever he wants) and has funded c.1900 loans in total. Around 7% of his loans have defaulted, and his portfolio is profitable.

Lender K lives in Yorkshire. He started lending in 2016 with a deposit of £1k. Over time he has invested a total of £50k and has made withdrawals of c.£27k. He automatically reinvests his loan repayments received (which he can switch on and off whenever he wants) and has funded c.1900 loans in total. Around 7% of his loans have defaulted, and his portfolio is profitable.

35,000+ Users

Reviews & Testimonials

We’re rated 5* on Trust Pilot, read some of the highlights below. 

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Trust Score: 4.8 | 286 Reviews

I have been lending for some time now and have issued over 300 Loans.Whilst this is a higher risk investment, as clearly explained on the website, I think the product is easy to get your head around and am glad to be able to earn a healthy return whilst adding competition to an overlooked area of the lending space.I am thankful for the new Lender Statistics Page which has helped my understanding of my investment.

Emily

Lender

I have used TMP twice now and both times the funds have been received quickly when needed. Also when I wasn’t able to make a payment due to knee surgery the team were very helpful in allowing me to change my payment date to when I would have funds available to pay. The replies to my queries were also answered considerably quicker, a lot quicker than I expected to be honest. A great company to deal with all round.

Liam

Borrower

Great company that cares about its clients!! The best customer service experience I have had in years!!! They have been able to meet my requests or date changes every time. Great product, excellent service!

Delia Druantia

Borrower

Have been a lender on the platform for 7 years and have always received first class customer service. Reported issues are dealt with quickly and efficiently.

KK

Lender

Extremely helpful customer service, always go above and beyond. The service is the best value in times of need and I highly recommended

EM VB

Borrower
The Money Platform

The Money Platform is a trading name for Gracombex Ltd (company no. 9413521) and our registered offices are at:

Wework Swan House, 33 Queen Street, London, EC4R 1BR.
Gracombex Ltd is authorised and regulated by the Financial
Conduct Authority (Ref. 716455).
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Data Protection Registration Number ZA099774.

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