The Appropriateness Test Guide
The relationship between the Borrower,
The Lender and Kuflink
- An Article 36H agreement (for Individuals) or a lender agreement (for Corporates) is how the relationship is formed between lender and borrower.
- Kuflink facilitates and manages this and is responsible for collecting, making capital and interest payments.
- You will never have to seek any repayment from the borrowers directly nor do you need to do any due diligence on the borrowers.
Kuflink will take care of:
- Credit checks on borrowers
- Loan pricing
- Valuation and searches on properties
Risks of P2P investing
- Borrower’s circumstances can always changeand there is a risk that they might make payments later than was agreed with kuflink, or they might even fail to repay the entire loan.
- Holding your investment in an IFISA does not reduce the risks associated with P2P agreements.
- Your investment is not protected by the Financial Services Compensation Scheme (FSCS).
Investing on the Platform
- Investing in Kuflink is not the same as having a savings account.
- Peer to peer Investments that are listed on the secondary market may take time for the investment to be sold.
Access to funds
- When you invest via Kuflink, you are tied in for the duration of the loan term unless you use Kuflink’s secondary market and sell your loan parts to another investor.
- There is no guarantee that someone will buy your loan part, and a small fee is applied to the seller if someone does buy the loan part from you.
- You are unable to list a loan part for sale that is in default, in arrears or pending status update, and the secondary market is only applicable to Select Invest loan parts.
Peer to peer Investments that are listed on the secondary
market may take time for the investment to be sold.
Rates may vary
- Retail investors are advised not to invest more than 10% of their net assets in high-risk investments e.g. P2P agreements.
- Kuflink loans are secured against UK property. We conduct all the due diligence before a loan is approved, however there is always a possibility of you losing your money.
- Your investment return can vary over time.
Kuflink Wind Down Plan
- If Kuflink decided to stop accepting any new business, Kuflink’s 'Wind Down Plan' ('WDP') would come into effect.
- The Wind down plan is designed to ensure that your investment will continue to perform as expected however this is not guaranteed.
- Kuflink will not recall all loans from borrowers or terminate your investments or simply shut your account.
For Individual and Corporate investors, the funds in the Kuflink wallet
are covered by FCA Client Money Rules and are held in a segregated
client account with NatWest Bank Plc.
