Yes. You should assume that a small proportion of loans will run into difficulties. We do all we can to prevent this happening, including extensive checks on all companies that apply to borrow but it is inevitable that a small proportion could fail. It is strongly advised that you minimise the impact of this risk to you by spreading your investments across as many loans as possible. This will lessen the impact of any one company failing.
Visit our statistics page to view both the expected default rates and the actual rates we have experienced to date.
You should also read the page on ‘Understanding Risk’ to ensure you have understood the potential risks associated with crowdlending.