It is important to remember that with all lending there is an element of risk. Some borrowers may not be able to fully repay their loan. If this happens, the loan becomes known as a bad debt.
All of our borrowers undergo a rigorous credit evaluation process before they post a loan request on Flender.
This process includes the following checks:
- Credit Checks by Equifax – the borrower must have a good record of managing their finances.
- Affordability – the borrower must clearly show that it can comfortably afford the repayments.
- Creditworthiness – we check each borrower’s identity and creditworthiness in detail, using the same business information that all the best financial institutions use. We also validate their bank statements and audited financial accounts.
Our experienced underwriters review every application in full before it can be posted on Flender.
We advise all lenders to spread their money across multiple campaigns to reduce their risk. By lending only a small proportion of each business loan, you reduce your exposure.