For many happier returns

Every investment you make on the Leap platform carries an element of risk. Repayment of your capital is dependent on the borrower making all of their expected repayments. If a borrower stops paying, your capital is at risk.

If a borrower stops paying, we will contact them and try torecover the outstanding amount by following the steps outlined in our arrears policy, which is available on request.  If this is not possible, the loan will be written off and you will lose the money not paid back on the loan.

As Leap operates a peer-to-peer lending platform, money invested is not covered by the Financial Services Compensation Scheme (FSCS).

We have measures in place to reduce risk as much as possible and we automatically diversify your money across at least 5 different borrowers each time you invest.

However, it is important to remember that whenever you invest, your capital is at risk and you should only invest what you can afford to lose.

There are a few things that could affect your repayment. Your borrower might miss payments (known as ‘delinquency’), be unable to pay the full amount and enter into an arrangement or even die. Here’s how we would handle each situation.

Delinquency

This could cover all sorts of situations including late payments, defaulting on the loan, entering into an Individual Voluntary Agreement (IVA) or declaring bankruptcy.

We will try to recover the outstanding amount by following the steps outlined in our arrears policy, which is available on request. If we can’t recover the loan it will probably be written off and you will lose some or all of the money invested in that loan.

Arrangement

This is normally put in place when a borrower can’t make the full monthly repayment and instead pays back what they can afford.

Any repayments they make will be passed on to you, even if the amounts are lower than expected.

Your original investment amount might be recovered; however this could take longer than initially expected.

Death

The executor will be given a copy of the agreement and the outstanding amount. They can decide whether to pay off the loan in a lump sum or monthly repayments. If the estate is unable to cover the loan, it will be written off.

If there is no executor, we’ll search for a probate record online. If we can’t find one, we’ll get a ‘standing search’ for six months, which means we’ll be informed if anyone applies to legally represent the estate

You can withdraw cash that’s in your wallet or is waiting to be invested.

You won’t be able to withdraw cash that you’ve lent to a borrower, since they will be making repayments in line with your agreement.

However, you can sell your investments on to other investors provided the loan has been active for at least 12 months and the borrower is up to date with all the repayments.

Please note that this is not a guarantee and is dependent on other investors making offers to lend on the platform.

When you invest on the Leap platform, your money will go to UK individuals who are wanting to refinance existing credit that they have with one lower rate personal loan.

All borrowers have been assessed by Leap to ensure they are creditworthy and can afford the loan before they are matched up with investors.