By investing via RateSetter, you are lending your money to a number of people that wish to borrow on RateSetter, some of which may not pay back their loans.
To mitigate this risk, RateSetter has introduced a number of provisions:
- Excellence in underwriting: robust credit and affordability checks on all borrowers
- Portfolio management: RateSetter’s loan book is diversified across many borrowers of different types and channels
- The Provision Fund: if a borrower misses a payment, the RateSetter Provision Fund reimburses the investor; if the loan goes into default, the Provision Fund takes over the loan and repays outstanding capital to the investors
Learn more about RateSetter's protection: https://www.ratesetter.com/invest/everyday-account/protection