There are risks with every type of investment, and crowdlending is no different. Although we carry out a lot of due diligence, you should assume that a small proportion of loans will run into difficulties.
Once a loan has started, FundingKnight monitors repayments regularly – and we pursue any late payments. Where a business fails, we will do our best to recover your money, but this may not always be possible. You could then lose part or all of your investment in that loan.
Please note: FundingKnight does not currently offer a compensation scheme to protect against any losses, should a company that you lend to default on the loan.
This is why we strongly advise you to consider the risk ratings that we assign and to spread your investments across as many loans – and types of loans – as possible. This will minimise the impact of any one investment failing, and any bad debt.
To find out about our current default rates, please see our Statistics page.