Frequently asked questions for investors

How is Peer Funding different to other P2B sites?

Peer Funding is a multi-lending product site unlike most competitor P2B sites who only offer 1 or 2 products. Investors can therefore choose the products that best suit their appetite to lend and build a varied portfolios, rather than have to trawl around several sites.

How can I become an investor?

First you will need to create an investor account on the Peer Funding Platform. There is more information on our Start Investing page and you can create an account from the home page by clicking on ‘Register Now’ and entering some simple details. Once registered, you will be sent a full Investor Guide & Welcome Pack.

How do I add funds to my account?

As a Registered Investor you will be able to access your own personal Investor Dashboard where you will be able to add and withdraw non-invested funds and earnings.

The minimum deposit is £10.00.

What is my rate of return on my investments?

Your Investor Dashboard will present all information relating to your investments, with key data indicators, like your rate of return, displayed separately to help you keep track of what’s important. Earnings from each loan and each product type invested will be different, but Peer Funding is expecting a net return to be in the region of 6% – 12% depending upon the product spit and type of loans invested. Estimated returns are a forecast and are not a reliable indicator of future results.

Peer Funding currently does not charge an administration fee to investors.

All investors should take note of the information and risk warnings posted throughout the site as investing in UK businesses puts your capital at risk and past performance is not necessarily a true indicator of future performance.

What happens if a loan repayment is late?

Peer Funding will keep investors informed at all times if a loan repayment becomes overdue. If a loan repayment is not made up within three days of the due date, Peer Funding will take first action to understand the reasons why and attempt to recover the situation. Should a loan default, then Peer Funding Trustee Limited will act on behalf of all investors, using an established recovery company where appropriate, to recoup potential losses and if necessary by pursuing the available security held in support of the borrowing.

What are Bids and what are Investments?

A bid is an amount of money you have bid against a particular lending application, but has not been confirmed as accepted at that time by the borrower. The funds involved will be taken out of your investment account, but will be returned if your bid is not accepted for any reason. An Investment is an amount of money that you have bid against a particular lending application that has been accepted by the borrower.

How do you calculate your Risk bands?

We use the services of external credit reference agencies to provide us with a risk score of between 1 and 100, with 100 being the best and a predicted level of business failure, expressed as a percentage over the next 12 months. A risk band is then allocated by us based on the scores. See “Understanding Risk” for more details and explanation of what is analysed to decide on Risk scores and risk bands.

What security is taken in support of loans and what does the security actually mean?

For Business Loans we normally ask for Personal Guarantees. For Secured Loans we will look for realisable assets to be offered as security to support the funding. For Selective Invoice and Selective Debtor Finance we will normally take assignment of the invoices and look for verification. For Property Bridging and Property Development Loans we will normally take a first charge over the property/land involved in the transaction.

Taking security to support borrowing requests means that in the event of a business not repaying the borrowing, the security will be called upon to repay or reduce the amount owed to the investors.

What amount can I invest in a single company?

You can lend any amount in multiples of £25. The total amount invested into each loan will be split into multiples of loan parts each worth £25

What fees will I have to pay?

Peer Funding does not currently charge investors an administration fee. Our terms and conditions do allow us to charge a fee in the future, but we do not envisage this to be the case.

Secondary Market fees: If you are successful in selling a loan transaction part, the sale proceeds will be transferred to your Nominated Account after the deduction of a fee (payable to Peer Funding) of 0.50%.

What is the risk in investing via your site?

There are risks in investing via P2B. Your risks are clearly laid out in our “Risk Warning” and on the Understanding Risk page on this site. If in any doubt you should seek independent financial advice before committing to investing via Peer Funding.

Where is my money held?

Your money is held in a designated Client Account with Lloyds Bank plc, separate from the Peer Funding trading account. This means that should Peer Funding cease to trade your funds would be held safely in the Client Account.

Will I know who I am investing in?

Yes. Details of each borrowing company will appear on our Marketplace and Secondary Market, together with risk and financial information on the company and its directors.

 If I invest, can I get my money back early if I need to?

You can use our Secondary Market to sell eligible loan parts if you need to. See our “Secondary Market” section for full details. Selling loan parts requires another investor to buy your loans parts and we cannot guarantee that loan parts placed for sale will find a buyer.

How can I track what is happening to my investments?

Once registered you will be able to access your own personal Investor Dashboard. Here you can see details of each of your investments and track repayments and your earnings.

When do I get repaid on my investments?

For Business and Secured Loans you will get monthly repayments of capital and interest over the agreed term of the loan.

For Selective Invoice and Selective Debtor Finance you will receive repayment of your capital and interest when the invoice is settled.

For Property Bridging and Property Development Loans you will normally receive monthly interest payments and repayment of your capital at the end of the agreed loan term

What is the Secondary Market?

The Secondary Market is a separate section of the site dedicated to those who wish to sell eligible loan parts to other investors who wish to buy portions of existing loans.

What is AutoBid?

AutoBid is an investor tool which allows the platform to automate bids into preselected investment opportunities.

By preselecting product, rate and amount, AutoBid is a useful tool to help build a diverse and balanced portfolio. The Peer Funding platform operates a dynamic bidding function. It initially submits your AutoBids at the highest possible rate and will stop bidding if other investors outbid past your lowest acceptable rate, as per your AutoBid setting.

Setting a low AutoBid amount is a great way to build diversity into your portfolio, but it may not see funds invested immediately and for this reason it is still possible to enter manual bids on other loan applications.

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