Investments with RateSetter are protected by the Provision Fund which provides a buffer against poor performance.
The Provision Fund is made up of contributions from each loan made. The Provision Fund has a 100% track record: to date, every investor has received the returns they expected. It is a track record that we are proud of and are highly incentivised to maintain. However, it is not a guarantee for the future and your capital is at risk.
In one exceptional case where a loan was made to a company that subsequently went into financial difficulty, RateSetter itself took part of the loan onto its own balance sheet and has agreed to give that company further direct financial support so that it can continue to trade and repay its debts. We did this because the loan was outside RateSetter’s credit policy and we believe that it was appropriate, in this specific case, to stand in front of our lenders and the Provision Fund.