Your investment with Lendy is known as a ‘receivables participation’, which entitles you to receive payments from Lendy derived from payments that we receive from your borrower.
The benefit of this type of investment is you have no direct contact with the borrower, as we take on the obligations, including handling repayments, queries and so on.
You are also investing in a secured loan. This means that if the borrower fails to repay their loan, we can seek to recover any outstanding amounts by taking possession of the property and selling it on. The amount which is due to you from the proceeds of a sale of property (or any other security) will be held on trust for you and paid into the segregated client account.
Please note, participation in loan receivables is not a deposit and cannot be construed as such, and does not give rise to any rights under the Financial Services Compensation Scheme. Please see our Due Diligence page for more information on risk.