Lending Works is a peer-to-peer lender which matches shrewd lenders with thoroughly underwritten borrowers providing a much higher return on your money. In order to protect our lenders we provide market leading threefold protection which includes the Lending Works Shield. The Shield has insurance against borrower defaults, cybercrime and fraud. No other peer-to-peer lender offers this.
Why lend through Lending Works?
- Earn fantastic returns
- Unique threefold protection
- Flexibility for your money
- Simple and transparent
- Help real people do real things
- We do the risk management so you don’t have to
All Lending Works AERs are stated after fees have been deducted. All rates are accurate as at 06/01/2014 and illustrate a range of fixed term savings products ranging from 1 to 5 years. Some of these savings products include minimum and maximum deposits. Savings products offered by banks are covered by the FSCS scheme, whereas peer-to-peer lending is not.
How it works
Here at Lending Works we do all of the hard work, so you don't have to. Becoming a lender is simple. Watch our How it Works video here:
To better manage your money, Lending Works includes the following features:
- Auto-Lend - keeps your money lent out in order to maximise your returns
- Monthly Top-Up –lend money monthly to quickly grow your account
- Quick Withdrawal – exit your loan agreements early provided a new lender can be found to replace you. A fee of 0.6% or £20 (whichever is greater) is charged for this service
- Lending fees - are capped at 1% and all AERs quoted are stated after fees have been deducted
Protecting your money is our highest priority. In order to provide the highest possible protection, we have three levels of protection for our lenders:
1. Meticulous underwriting
Our team is comprised of financial services industry experts who ensure that only the most eligible borrowers are approved utilising the most effective underwriting techniques from the finance industry, including:
- Equifax credit check - to check borrowers' credit score file
- Affordability check - we check borrowers' income, outgoings, bank accounts and current debt
- Identity check – we use sophisticated software to verify borrowers' identities
- CIFAS - we check each borrower against the national CIFAS register to help prevent fraud
People who can get a loan at Lending Works:
- Have a good payment history
- Have a long and strong track record
- Can afford the repayments
We never approve borrowers who have:
- CCJs against them
- Poor repayment history
- Less than 3 years track record
- Excessive unsecured loans, credit cards or debt
2. Ring-fenced Trust
Lenders' money is held within a Trust which is administered by a not-for-profit company. All funds held within this Trust are ring-fenced from the day-to-day operations of Lending Works in a segregated client bank account.
The Trust has an agreement with a back-up services provider who, irrespective of the status of Lending Works, will manage the Trust, collect the debts due and return the money to our lenders.
3. Lending Works Shield
The Shield is a unique feature designed to provide even more protection to our lenders. It consists of two parts:
- Reserve fund which is held in the ring-fenced Trust. This protects against borrower default risk and fraud and ensures lenders receive their expected returns.
- Insurance policy with a UK-based insurer that protects against extraordinary risks such as a major negative economic event occurring.
For more information about our market leading threefold protection please click here.
Market leading protection
The current average industry wide personal loan borrower default rate is 0.58% as quoted by Which? Magazine*. The Lending Works Shield provides cover of up to 10% of all Lending Works loans and so provides a market leading 17 times cover