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Sourced Capital Review
Much more substantial information and data is needed. In any event, it's not approving any new loans at present.
Sourced Capital’s Bridging & Development loans are currently unrated, due to not enough information being provided and also due to it currently offering no new loans.
This account has been paying lenders in the region of 10%-12% interest before bad debts.
Sourced Capital currently says:
“Sourced Capital is temporarily not accepting new investments as part of our ongoing commitment to maintaining robust compliance and operational standards.”
More on that below.
Visit Sourced Capital or keep reading the Sourced Capital Review.
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On Sourced Capital pausing new lending
If you re-read the message from Sourced Capital in the gold box above, it’s unusual for a business to stop accepting new investments in order to work on compliance. “Compliance” means hitting its minimum regulatory standards.
Could you imagine Blackrock, Barclays, Vanguard, Fidelity or Hargreaves Lansdown suddenly pausing new investment for the same reason?
While it’s a very significant event, the Financial Conduct Authority has not published any block on Sourced Capital accepting new investment, so at present this appears to be led entirely by Sourced Capital.
Furthermore, the regulator is always harder on alternative investing providers, so providers know they need to work hard to ensure they don’t get in the FCA’s bad books. It’s possible that might sometimes involve taking more extreme action such as those that Sourced Capital says it has done.
That said, the last time the FCA imposed major restrictions on a P2P lending company, its public register was not updated to state those restrictions until four months after the fact. Unfortunately, that tardiness adds uncertainty when a provider in this space claims to have taken the decision to pause a critical aspect of its business by itself.
Reduced insights from 4thWay
As you can’t lend in new property development loans at present, most of this review has been temporarily taken down.
But I’ll give you a little information on lending results to date, and also on its wind-down plan, in the event it never reopens lending.
To warn you, there are few insights I can give you. Sourced Capital provides no data, documentation or access to 4thWay at all, so all I can provide is my interpretation of the very meagre information it provides publicly on its website (supported by a few minor background checks).
Its brief, public statistics are updated only sporadically, 2-3 times a year.
The small print at the foot of its public website also still states “© 2024 Sourced Capital” and the home page proudly announces that it is the sponsor of a golf club in 2024. Further, its home page states it has a history of “zero losses”, but that has long not been the case.
That all reflects perhaps either neglect or constrained business resources for the past couple of years.
Before you read on, Sourced Capital is for either high-net-worth investors or for lenders accepted as sophisticated by the regulator, which includes anyone who has already lent in two P2P loans and/or two P2P lending accounts in the past two years.
About Sourced Capital’s history
According to figures on Sourced Capital‘s website, lending rose from its starting point in mid-2019 to peak at new lending being approved in 2022 of £15 million.
After that it swiftly fell, reaching a low of just £3 million approved in 2025.
The amount of loans still live at the end of 2025 was over £16 million. (So that includes loans approved in 2025 or earlier that had not yet been repaid or written off.)
However, the amount live at the end of 2025 that had not turned bad was at just half of its 2023 peak: that means under £13.3 million, down from about £27 million.
How good are Sourced Capital’s interest rates, bad debts and margin of safety?
Lending interest rates are usually 10%, although they reach 12% if you lend £20,000+ in a loan. You could lend to less experienced property developers, probably making it appropriate that you’re offered double-digit rates.
As of December 2025, about 18% of live loans are bad debts. That’s a large increase on the prior two years.
Looking back even further, no loans turned bad in any of its first four years as a P2P lending company. I would want Sourced Capital to provide more information publicly to explain the worsening situation and what the recovery expectations are.
It’s not that this rise in bad debt is necessarily too much or necessarily a problem – but reasons should be given.
Some vague information on its website possibly contradicts the 18% figure.
That other information suggests that just over £3 million in loans is currently outstanding today, which is much less than was apparently outstanding in December 2025.
At end 2025, £2.9 million was apparently bad debt, so potentially all remaining live debt is bad. We don’t know.
It stands to reason though that as more loans get repaid and as Sourced Capital continues to pause new lending, what will be left is the bad debt being actively pursued.
In any event, lenders are reputed to have been paid over £9 million in interest over the years, which, for most lenders, would more than cover any losses that might still occur on outstanding bad debt.
In terms of past losses, lenders have just suffered some loss of interest as well as less than £200,000 in lent money being written off so far, says Sourced.
Is Sourced Capital profitable?
It’s not possible to review Sourced’s financial situation, because publicly available information is limited.
Its various businesses with few public details make it tricky to track what’s going on. That is actually quite normal in the property industry and in property lending. Many similar businesses to Sourced have interconnected companies that serve a genuine purpose, and that have few published details to pin down their financial health.
We know it lost money up to and including 2022, but we can’t be certain whether it made a profit or loss in its last three filed periods of 2023, 2024 or 2025.
Sourced once told us it was looking to reach profitability in five years of trading. Having past that point, its success is unknown.
What happens to Sourced Capital in a wind-down?
Sourced Capital will ideally try to wind down outstanding lending, chase borrowers, collect debts and distribute the payments to lenders all by itself.
If it has not gone bust, the cost of doing this should be low and just a very small number of people staying on to work part time could manage it. If that proves correct, what lenders get back should simply reflect the quality of the loans and Sourced Capital’s ability to recover bad debts.
If Sourced Capital instead has to go through an unplanned wind-down – which usually means it runs out of money and can’t pay all its bills – it should still have some money segregated to help cover this, because it is required to by the regulator.
While it’s not a huge sum of money set aside, there are now few loans are outstanding. So I think it could prove a very significant sum in an unplanned wind-down, increasing the chances it goes smoothly and keeping any additional costs to lenders down.
In an unplanned wind-down, Sourced Capital has engaged Rebuildingsociety to be on standby to wind the loan book down and distribute payments to lenders. That’s whether the lenders are lending through Sourced Capital’s ISA or its regular account.
I don’t know the terms that Sourced has agreed with Rebuildingsociety. That means whether Rebuildingsocietys’s fees will be limited to whatever income Sourced Capital was getting from borrowers as they repay, or whether Rebuildingsociety is allowed to charge higher fees that will be passed on to individual lenders.
During a wind-down, as usual: borrowers are still legally obliged to pay and they will be chased if they stop paying; lenders’ cash is in a segregated client account that Sourced Capital can’t tap for itself; and lenders are lending directly to borrowers, not Sourced Capital, which adds a great level of protection.
There are always much greater risks in an unplanned wind-down, but with just a handful of loans left the risk is already greatly reduced.
Thank you for reading this abbreviated Sourced Capital Review! Visit Sourced Capital or see the comparison tables to learn about P2P lending accounts that are open to lending.
Independent opinion: 4thWay will help you to identify your options and narrow down your choices. We suggest what you could do, but we won't tell you what to do or where to lend; the decision is yours. We are responsible for the accuracy and quality of the information we provide, but not for any decision you make based on it. The material is for general information and education purposes only.
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