is the risk that a borrower is unable to repay the full amount owed and attempts to collect the bad debt fail. This is the most common risk in P2P lending.
The(FCA) is the UK’s financial regulator. Its job is to protect those who buy financial services, such as P2P lending and . It has the power to sets rules for financial businesses and punish them for non-compliance. It has no authority over investors, including people who lend through P2P.
stands for financial technology. The industry is businesses that are using computer programs to advance banking, investing and other areas of the financial industry. The work of a business can include topical themes, such as artificial intelligence, blockchain or biometrics.
is shorthand for small- to medium-sized enterprises (companies). The vast majority of companies fit in this category. Some platforms enable lending to such businesses. At present, there are no P2P lending companies that focus on lending to large companies, which typically borrow by issuing their own bonds (loans) directly.
is when you lend to business borrowers who put up amounts owed by customers as collateral. In some cases, the borrowers’ customers can be asked to pay their invoices directly to the lenders or at least to the P2P lending/ platform in the middle. Read more.
The Read moreare based on interest rates and a forecast of the risk of borrowers not repaying their entire debts. There are other risks. A top, 3/3 “Exceptional” means that, using a strict version of the international banking standard “Basel” method, we expect the average investor won’t make a loss across…
Administrators (otherwise known as receivers) are people appointed to wind down aplatform or provider, when it has failed or gone bust. Administrators are expected to attempt to return as much money to lenders as possible by taking over the management of the existing loans until they are all repaid. Read more.