Your investment journey
When is my capital returned?
Your capital is typically returned to you when the loan reaches its full term, or earlier if the borrower redeems ahead of schedule. Once repaid, you can choose to reinvest your funds or withdraw them from your account.
Your capital is at risk and may not be returned. Ensure you understand the risks of Peer to Peer investing.
MANAGING YOUR MONEY
Interest and uninvested funds
Interest payments on invested funds
You receive interest monthly in arrears, paid by your borrower. The timing of your returns depends on borrower repayments and other factors that can influence the overall outcome.
Uninvested funds
You don’t need to transfer money to your FOLK2FOLK account until you’re ready to invest. But once you are, you must have available funds on the platform to be able to select an investment.
While your funds are on the platform but not invested, you will not receive any interest.
You can remove your uninvested funds at any time, but if your account includes IFISA funds make sure to follow ISA rules when withdrawing money to avoid affecting their ISA status.
Early exit options
Can I exit before maturity?
While FOLK2FOLK loans are designed to be held until maturity, we understand that circumstances can change.
That’s why we provide a Secondary Market, where investors can list all or part of their loan investments for sale to other FOLK2FOLK investors.
What you need to know:
- You cannot list loans that are in arrears or default
- A £250 listing fee applies
- A sale is not guaranteed it depends on demand
- If unsold, you remain invested until loan maturity or borrower repayment
Want to know more?
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Thinking about investing with us?
Apply online or call us to talk it through.
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