Lending Works Review
Below is the latest Lending Works review given by one of 4thWay's experts.
4thWay's quick expert Lending Works review
Low bad debts, a large reserve fund and insured loan repayments
The word “strong” doesn't even begin to describe the defences this P2P lending site has built against losses:
- It is more selective of its borrowers than any other major personal loans P2P lending company.
- It has a large reserve fund to cover expected losses.
- And it has a unique insurance to pay you if a borrower is unable to pay due to accident, sickness or unemployment.
Lending Works has been around since the beginning of 2014 and has completed tens of millions of pounds' worth of personal loans. We have no up-to-date management accounts, but Lending Works recently received another £3 million in backing from respected investors. It's extremely transparent, enabling us to analyse each individual loan's performance using risk modelling and investing techniques.
Lending Works* has a lot of underwriting experience in its key team as well as credit-risk experience with personal loans. We believe its interest rates are high enough, with a large margin of safety, to protect lenders from disaster during a severe recession, regardless of whether you pay taxes on the interest.
Your risks are effectively spread across thousands of borrowers, since risk is pooled between all existing loans. Therefore you cannot be the victim of extreme bad luck.
Lending Works' lending accounts are available as IFISAs.
The opinions expressed are those of the author and not held by 4thWay. 4thWay is not regulated by the ESMA or the FCA, and does not provide personalised advice. The material is for general information and education purposes only and not intended to incite you to lend.
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*Commission and impartial research: our service is free to you. We already show dozens of P2P lending companies in our accurate comparison tables and we keep adding more as soon as they provide us with enough details. We receive compensation from Lending Works and other P2P lending companies not mentioned above when you click through from our website and open accounts with them. We vigorously ensure that this doesn't affect our editorial independence. Read How we earn money fairly with your help.