Lending Works: Peer to peer lending and borrowing

Does Lending Works provide the right peer-to-peer investing service for you?

Lending Works

Lending Works was founded on the idea that everyone should be able to benefit from financial services. The company offers a fresh alternative to old fashioned financial services companies, seamlessly connecting investors and borrowers who want a better deal.

Lending Works focus on fairness, transparency and honesty rather than profits, which has helped them set the bar in the financial services industry.

Continue reading to find out more about the innovative financial services company.

Who is Lending Works?

Lending Works was founded in 2014, after the founders had realised that all people wanted was fairness from their financial service providers. Since then, Lending Works has continued to grow, but the focus has not changed. The company is committed to “pioneering fair financial services that people love”, and will continue to innovate to provide the best user experience it can.

Lending Works connects investors and people wanting personal loans. Investments are diversified across many personal loans, reducing the risk for investors. Lending Works also provides unique protection from default and arrears through the Lending Works Shield.

All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.

How it works

To start lending through the Lending Works platform, follow these simple steps:

  • Open your account: Register in 2 minutes by completing the simple sign-up form
  • Chose loan length: Chose how long you want to lend for according to flexibility/ interest rate
  • Chose what to do with repayments: Chose if you want your repayments to be re-lent, if you want a regular income, or manage this manually
  • Add money: Transfer as little as £10 by debit card or bank transfer
  • Grow: Your offer will be placed in a queue, and once you have been matched, you will start to earn

Benefits to lenders

Lending money through lending works comes with a number of benefits, these include:

  • Protection from the Lending Works Sheild
  • Have control over income from investments
  • Quick and easy sign up process
  • Lend to only approved, credit worthy borrowers
  • Invest for 3 to 5 years
  • Invest as much as you like, as often as you like, starting at £10

What is the Lending Works Sheild?

The Lending Works Shield is an extra layer of security for lenders of the Lending Works platform. It is a combination of Lending Work’s unique insurance and their reserve fund.

The insurance is provided by external insurance providers. It provides protection against missed loan repayments due to borrowers suffering from loss of employment, accidents, sickness or death.

The reserve fund is a large fund of money kept separate from the firm’s accounts. It is used to cover arrears and defaults on loan repayments, and is kept topped up using a portion of the fees and interest from the borrowers.

Should I seek professional advice before I lend?

If you are not a professional investor or institution, you should seek appropriate advice from a professional adviser about lending through peer-to-peer platforms.

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