If the borrower seeks to obtain a loan secured against money owed to them and is considered eligible for insurance, a policy is provided by a well known insurer. The policy does state that the insured will pay the insured amount of the debt advanced in the event of a debtor's insolvency or their insolvency.
The insurance (in certain circumstances) has been arranged to mitigate likely known risks to Marketlend through the establishment of strict credit control procedures from the application process through to the collection of a debt on default. The process is as follows:
The borrower may receive different trading terms (in increments of 30 days) from different suppliers. However if the borrower fails to make payment via direct debit on the due date for the current amount outstanding and due for payment on the statement, then they will be registered on the default report. The borrower will pay default interest of 26% or 15 dollars per day. Furthermore their terms of the loan may be restricted after they are no longer in default, or they may be not able to use the loan facility at all.
* only available in certain circumstances
**past returns are not a guide to future returns ^ Default Interest may not be payable in all circumstances