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Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be high risk.

What are the key risks?

You could lose the money you invest
- Many peer-to-peer (P2P) loans are made to borrowers who can't borrow money from traditional lenders such as banks. These borrowers have a higher risk of not paying you back.
- Advertised rates of return aren't guaranteed. If a borrower doesn't pay you back as agreed, you could earn less money than expected. A higher advertised rate of return means a higher risk of losing your money.
- These investments can be held in an Innovative Finance ISA (IFISA). An IFISA does not reduce the risk of the investment or protect you from losses, so you can still lose all your money. It only means that any potential gains from your investment will be tax free.
You are unlikely to get your money back quickly
- Some P2P loans last for several years. You should be prepared to wait for your money to be returned even if the borrower repays on time.
- Some platforms may give you the opportunity to sell your investment early through a 'secondary market', but there is no guarantee you will be able to find someone willing to buy. .
- Even if your agreement is advertised as affording early access to your money, you will only get your money early if someone else wants to buy your loan(s). If no one wants to buy, it could take longer to get your money back.
Don't put all your eggs in one basket
- Putting all your money into a single business or type of investment for example, is risky. Spreading your money across different investments makes you less dependent on any one to do well.
- A good rule of thumb is not to invest more than 10% of your money in high-risk investments.
The P2P platform could fail
- If the platform fails, it may be impossible for you to collect money on your loan. It could take years to get your money back, or you may not get it back at all. Even if the platform has plans in place to prevent this, they may not work in a disorderly failure
You are unlikely to be protected if something goes wrong
- The Financial Services Compensation Scheme (FSCS), in relation to claims against failed regulated firms, does not cover investments in P2P loans. You may be able to claim if you received regulated advice to invest in P2P, and the adviser has since failed. Try the FSCS investment protection checker here.
- Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA-regulated platform, FOS may be able to consider it. Learn more about FOS protection here.

If you are interested in learning more about how to protect yourself, visit the FCA's website here.

For further information about investment-based crowdfunding, visit the FCA's website here.

Why do we use P2P?

At The Money Platform, we’re enabling lending between people – creating a bridge that connects individual borrowers and lenders directly. Anyone can apply to borrow or lend.

Our mission is clear: to leverage data for better lending solutions.

With a focus on millennials with ‘thin’ credit files who are in need of short-term cash and investors seeking diversified investment opportunities, we have created an ecosystem that promotes financial inclusion and is easy to use. If we provide good loan solutions for our borrowers, then our lenders will enjoy good outcomes as well.

Invest with us

How Does Lending Work?

Step 1: Complete the registration process. This involves providing personal details, self-classifying your investor status, passing an appropriateness test to show you understand the risks of investing, and undergoing Know Your Customer (KYC) checks. The KYC checks are standard procedures designed to prevent identity theft, financial fraud, and money laundering.

Step 2: Following registration, there is a 24-hour cooling-off period. This is a regulatory requirement designed to give you some time to consider the decision and ensure it suits your financial objectives.

Step 3: Once the cooling-off period has elapsed, your account will be enabled for lending. Should you wish to proceed with the investment opportunity, you will then be able to make your first deposit via the online dashboard.

Step 4: After funding your account, the final step before your funds can be deployed, is to choose which loan amounts you would like to offer to the borrowers on our platform. Once your offers have been enabled, your funds will join the queue and your first loan will be funded shortly after.

Step 5: Loan performance can be analysed via the personalised lender stats dashboard on your online account. Alternatively, you can always download portfolio data into Excel and apply your own formulas to the raw data.

How Does Borrowing Work?

Step 1: Borrowers apply directly or via one of our affiliate partner’s comparison websites. The process is straightforward and user-friendly.

Step 2: After submitting their personal details, we will proceed with a soft credit check. This check, combined with our intelligent scorecard, enables us to determine the borrower’s affordability for a loan. This credit check does not impact their credit score but is essential to ensure that we are adhering to responsible lending practices.

Step 3: If successful, our loan offer will be displayed for the borrower. Loan offers are valid for 30 days, giving the borrower enough time to make a decision on what loan amount and duration will be best for them.

Step 4: Once they are happy to proceed and confirm their selection, funds will be transferred from one of our registered Lenders to the Borrower upon the completion of a KYC check. This helps ensure a safe and secure lending process for all parties involved. A loan contract and instalment schedule will also be created at this point and will remain accessible throughout the duration of the loan via the online dashboard. The loan contract is anonymised: it shows the Lender’s TMP customer number and the Borrower’s TMP customer number. No personal details are exchanged.

Step 5: The borrower’s instalments will be automatically collected by TMP on their contractual payment dates and paid to the Lender after deduction of TMP’s loan administration fee. Should the borrower encounter any financial difficulty, our customer service team will always be available to assist.

So now that you understand the mechanics of lending at The Money Platform, whether you’re a millennial seeking short-term cash or an investor looking for a new investment opportunity, The Money Platform could be the place for you.