What factors do you consider when deciding whether or not to list a P2P loan?
- Finance factors, considering factors such as Profit on Cost, Loan to GDV and Loan to Value.
- Business and Management factors, considering items such as age of business and experience of management team
- Track record – such as number of schemes delivered and GDV delivered.
The results then determine the Credit Rating Score Band for each loan listed. The bandings are as follows:
Understanding Default Rates:
A 1% probability of default means that 1 in 100 loans are expected to default. A 3% probability of default means that 3 in 100 loans are expected to default.
Whilst all reviews are thorough, investors must always do their own due diligence and address any outstanding questions before investing.
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