What Insurance and Loss Protection Cover

Insurance or loss protection or both make Marketlend a first in marketplace lending

Marketlend’s borrower and loan risk assessment systems are also supported by carefully structured insurance (in certain circumstances) and loss protection policies.

Given the new nature of these potentially high yielding loans, insurance (in certain circumstances) and loss protection are the best ways to ensure all our valued investors have extra peace of mind. However there are risks associated with the loans and Investors need to bear that in mind that they may lose all their money if a loan fails and the losses exceed the loan amount.
It’s important to note that Insurance is available in certain circumstances. It is subject to supplier and borrower credentials and the insurer’s approval. Not all of the loans are insured and Investors are recommended to check the listing, prior to investing. If in doubt, feel free to contact us.

How are you covered

If the borrower seeks to obtain a loan secured against money owed to them or they wish to buy supplies 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.

What Insurance Covers?

  • Payment on insolvency
  • Repayment of Principal Advanced.
  • Collection Costs
  • Legal Costs

Protection through strict credit control procedures

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:

  • All credit applications received from the applicants are validated by Marketlend using verification processes.
  • Information is confirmed by detailed Mercantile Report including all publicly available information on the buyer/borrower, as well as current and historical information on directors.
  • Once validated, and depending on the size of the credit limit request, the application is processed for approval to the Insurer and then logged on the Marketlend system.
  • Marketlend's automated risk assessment tool will risk assess the loan and place the loan on the platform.
  • On receipt of a default notification, the system administrator will place the account on stop and no further funds will be available to this borrower will be purchased.

Default reporting in detail

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.

Extra certainty through our Loss Reserve

“We believe in the robust nature of our investment evaluation service. As such, we commit to pay losses to the extent that we have invested in the loan before any Marketlend investor investment suffers a loss. However an Investor must be aware that if losses exceed Marketlend investment, the Investor will suffer a loss or maybe all of the investment."
From inception, in addition to insurance (if applicable), a loss reserve is established to protect investors from possible loss. Marketlend uses its money to provide for the initial loss protection, and Marketlend invests with you. Marketlend's investment is ranked below investors if a loss occurs. This means Marketlend suffers a loss before any investor. Additionally, a portion of the borrower's loan (1.5%) is kept at settlement, to cover the costs of enforcing the investors rights against the borrowers or debtors to recover funds. Take control of the lending market today with Marketlend.

Take control of the lending market today with Marketlend.

Thinking of borrowing?

apply now

Already an investor? Sign in and try!

invest now