Don't invest unless you're prepared to lose money. This is a high-risk investment. You may not be able to access your money easily and are unlikely to be protected if something goes wrong. Take 2 mins to learn more.
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Don't invest unless you're prepared to lose money. This is a high-risk investment. You may not be able to access your money easily and are unlikely to be protected if something goes wrong. Take 2 mins to learn more.
Unsecured P2P lending is when a loan is issued and supported only by the borrower's creditworthiness, rather than by a type of collateral such as property. If a borrower defaults, the lender has no collateral to fall back on to get his money back. Hence the word “unsecured”.
Secured P2P lending is when a loan is issued and is backed by collateral such as property. This means that if a borrower defaults, the lender will be able to claim the collateral that the borrower has provided.
Unsecured P2P lending has dominated P2P lending in the UK, as the first P2P lending platforms were mainly providing unsecured personal loans. However, this has recently been changing due to the inherited risks with unsecured P2P lending.
We at Mustard believe that it is of utmost importance that we offer both borrowers and lenders the best protection possible if something goes wrong, including factors such as the shape of the economy. After all, our business depends on borrowers ability to pay their debts and that lenders are able to get their interest and principal regardless of what might happen. As such, we have chosen to only include secured loans on our lending platform.
