Always seek independent financial advice
The information shown does not constitute the advice or a personal recommendation, and therefore you should seek independent financial advice before deciding to lend. When you lend with GuarantorMyLoan you are making an investment, subject to risk and not placing your money in a deposit account.
What is a Guarantor Loan?
Guarantor My Loan, a trading style of Match The Cash Limited, provides Guarantor Loans which are a type of unsecured loan that is backed by a guarantor, usually a friend or family member, who guarantees to make the loan repayments if the borrower fails to make them.
Your capital is at risk as your returns are not guaranteed as Borrowers and/or Guarantors may not make repayments in time and in full.
Your investment is not protected by the FSCS
Whilst GuarantorMyLoan has sufficient financial resource, well above the regulatory requirement to manage the business, should the situation arise that GuarantorMyLoan find they are unable to continue with the business, your investment would not be protected by the Financial Compensation Scheme (FSCS).
Past performance is not a guarantee of the future
The rate of return shown on our website is at 30th June 2017 and is for a 3-year term, before tax and assuming the reinvestment of capital throughout the term. It assumes all of the loan repayments are made on time and in full.
The actual rate of return may be lower than anticipated if the capital is not immediately reinvested throughout the term and all of the loan repayments are not made on time or in full.
The annual default rate to 30th June 2017 was 3.1% and the anticipated default rate for the same period was 4.2%
Accessing your capital early
If you need to, you may apply to access your capital early, but this may not be possible in all circumstances and you may have to pay a fee. Details of our fees for early withdrawal can be found in section 11.5 of the lender terms.
You may have to pay tax on the interest earned. You are responsible for accounting for any income tax, corporate or personal taxes that may be payable by you to appropriate authorities.
MITIGATION OF THE RISKS:
Spreading the risk
In order to help you to reduce the risk of not achieving the returns anticipated or losing your capital, lending is divided over a minimum of 20 borrowers. The maximum we allow you to lend to any one borrower is limited to 5% of your investment
Due diligence on Borrowers and Guarantors
All borrowers and guarantors are carefully selected by trained individuals. Credit checks and affordability assessments are completed for both. Your money will only be lent to those that meet our strict lending criteria.
Thorough fraud searches
We take the threat of fraud seriously at GuarantorMyLoan. Protecting our investors against fraud is paramount. Each borrower and guarantor is required to provide identification in the form of photo ID and a bank statement. This information is verified by independent checks provided by reputable credit reference agencies which have access to centralised databases, enabling them to cross reference information throughout their network of members.
Discretionary reserve fund
GuarantorMyLoan has set up a discretionary reserve fund, which is held in a separate client account.
The reserve fund has been set up to protect the lenders capital and is funded monthly to reflect the growth of the loan book and anticipated level of bad debt. Access to the reserve fund is not guaranteed and is not a contract of insurance. In the event that a borrower’s account is in arrears of a sum greater than six contractual monthly payments Match the Cash on your behalf may make a claim, although it is not a guarantee.
If a claim is made it does not include any interest that has accrued or may accrue.
Before your money is lent it is held by GuarantorMyLoan in a segregated bank account so that it does not form part of our assets. This means that should the Company be unable to continue business your capital would not be available to our creditors.