THE RISKS

Anyone lending on a peer to peer platform must understand that there are risks involved and, whilst we will do our utmost to avoid any losses, some will be inevitable.

Always seek independent financial advice

The information shown does not constitute advice or a personal recommendation, and therefore you should seek independent financial advice before deciding to lend. When you lend with ShareMyLoan you are making an investment, subject to risk and NOT placing your money in a deposit account.

What is a Joint Loan?

A Joint Loan is an unsecured personal loan that is supported by a joint borrower, who can be a family member, friend or colleague. Both borrowers are jointly and individually responsible for repaying the loan.

YOUR CAPITAL IS AT RISK

Your capital is at risk as your returns are not guaranteed. Borrowers may not always make repayments on time and in full.

INVESTING IN MATCH THE CASH LIMITED (MTC)

MTC trading as Guarantor My Loan and Share My Loan has a collection of guarantor and joint loan products. The APRs for open products range from 34.9% to 59%. All lenders are treated fairly throughout the Lender allocation process.

Your investment is not protected by the FSCS

Whilst ShareMyLoan has sufficient financial resources, (above the regulatory requirement to manage the business), should a situation arise that ShareMyLoan find they are unable to continue with the business, your investment would not be protected by the Financial Compensation Scheme (FSCS).

Past performance is not a guarantee of the future

The rate of return shown on our website is before tax and assuming reinvestment of capital throughout the term. It assumes all of the loan repayments are made on time and in full. The annual default rate can be found here.

The actual rate of return may be lower than anticipated if the capital is not immediately reinvested throughout the term and all of the loan repayments are not made on time or in full.

The information above will be updated annually and made available on our website.

Accessing your capital early

You may not be able to access your money early. Should you need access to your money before it is due to be repaid, we offer a tool called ‘Quick Return’, which helps you sell your loans to other lenders, so you can get back your money, provided that there are others willing to purchase your loans. We cannot guarantee that you can get your money back early. Please refer to section 11.5 of the Lender Terms. There is an administration fee payable to Match the Cash of 2.5% of the amount you wish to access.

Taxation

You may have to pay tax on the interest earned. You are responsible for accounting for any income tax, corporate or personal taxes that may be payable by you.

MITIGATION OF THE RISKS:

REVIEW OF INDIVIDUAL LOAN PORTFOLIOS

ShareMyLoan reviews individual loan portfolios on a quarterly basis to ensure that each portfolio holds a balanced range of APRs. No individual portfolio will hold more that 25% of APRs greater than 49.9%.

Due diligence on Borrowers and Joint Borrowers

All borrowers are carefully selected by trained employees. Credit checks and affordability assessments are completed for both borrowers. Your money will only be lent to those that meet our lending criteria.

Thorough fraud searches

We take the threat of fraud seriously at ShareMyLoan. Protecting our lenders against fraud is paramount. Borrowers are required to provide identification in the form of photo ID and a 30 day bank statement. This information is verified by independent checks provided by reputable credit reference agencies which have access to centralised databases, enabling them to cross reference information throughout their network of members.

Discretionary reserve fund

ShareMyLoan has set up a discretionary Reserve Fund, which is held in a separate client account.

THE DISCRETIONARY RESERVE FUND WE OFFER DOES NOT GIVE YOU A RIGHT TO A PAYMENT SO YOU MAY NOT RECEIVE A PAY-OUT EVEN IF YOU SUFFER LOSS. THE FUND HAS ABSOLUTE DISCRETION AS TO THE AMOUNT THAT MAY BE PAID, INCLUDING MAKING NO PAYMENT AT ALL. THEREFORE, INVESTORS SHOULD NOT RELY ON POSSIBLE PAY OUTS FROM THE DISCRETIONARY RESERVE FUND WHEN CONSIDERING WHETHER OR HOW MUCH TO INVEST.

The Discretionary Reserve Fund is a ring-fenced cash reserve fund that is held to meet Lenders’ requests for reimbursement of capital when borrowers’ account is in arrears of sum greater than six contractual monthly payments. The Discretionary Reserve Fund is NOT an insurance product.

If a claim is made on the Discretionary Reserve Fund, it does not include any interest that has accrued or may accrue.

Client account

Your money is held in a segregated bank account until it is lent out- it does not form part of Match the Cash’s assets.