The Kuflink Appropriateness Test - Help Guide

1. What is peer to peer lending?
An opportunity to lend directly to other people or businesses using an intermediary platform such as Kuflink
who manages the borrower’s loan contract on behalf of the lenders.

2. Who has a contract with who under a P2P loan agreement?
The loan contract, or also known as an Article 36H agreement, is made directly between a platform user (the
lender) and the loan applicant (the borrower).

3. What does the platform user do?
With help of the loan contract (Article 36H) a platform user lends their money directly to the borrower. The
lender will be repaid once the loans have been collected from the borrower.

4. What does Kuflink do?
Kuflink operates the platform that brings lenders and borrowers together and manages the loan contract on
their behalf.
Kuflink carries out all the due diligence prior to arranging the loan contract for the borrower. This means Kuflink
assesses the borrower’s creditworthiness, undertakes a valuation and arranges for the legal charge to be
registered against the security property.
Once the loan is made, Kuflink collects capital and interest payments from the borrower on behalf of the lenders
until the loan is repaid.

5. What does the borrower do?
The borrower is responsible to pay the agreed interest and to repay the capital amount of the loan in line with
the terms of their loan contract.

6. Risks involved with P2P investing
A borrower’s circumstances can change at any point for a number of unforeseen reasons. This can have
significant consequences including that a borrower may no longer be able to pay their interest or even repay
the capital amount of their loan.
Funds lent to a borrower are at risk and a lender may not get all of it back.
The advertised rate of return is not guaranteed and can vary over the term of the loan.
P2P investments are nothing like savings accounts. Funds are lent to borrowers and therefore are not readily
accessible. They are also not covered by the Financial Services Compensation Scheme (FSCS).

7. Risks and Restrictions of the Secondary Market
There is no guarantee that another platform user wants to buy a listed loan part.
Loan parts that are in arrears or default cannot be listed on the secondary market.

8. What happens if Kuflink goes into liquidation?
The wind down plan makes arrangements for situations like unexpectedly going into liquidation. It is designed
to help investments to continue to perform and to ensure that client money remains protected under CASS
rules.