Insurance and Loss Protection

We invest with you and protect your investment with insurance*

Marketlend is the first Australian online marketplace lender combining insurance* and loss reserves with direct lending.

Insurance available*

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.

What the Insurance covers

  • Principal advanced to the borrower
  • Interest Payable by the borrower^.
  • Legal Fees
  • Collections 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 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. * only available in certain circumstances

**past returns are not a guide to future returns ^ Default Interest may not be payable in all circumstances

Extra certainty through our Loss Reserve

Additionally, a portion of the borrower's loan (1.5%) and a rate of 1.5% higher than the interest rate is charged, to cover the costs of enforcing the investors rights against the borrowers or debtors to recover funds. These are reserves and repayable to the borrower if they are pay out their account without any outstandings.

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