Lending and note platforms

Peer-to-peer lending platforms let you invest in consumer or business loans, usually through notes issued by the platform or loan originators. Since the EU Crowdfunding Regulation and national rules, some operate as licensed investment firms; others do not.

Returns can look attractive, but you take credit risk on borrowers and loan originators, liquidity risk (you may not be able to sell), and platform risk. These investments are not covered by deposit guarantees, and compensation schemes only apply where the platform is an authorised investment firm and fails to return client assets – not when loans default.