No. Once you’ve elected to compound your interest, this must remain for the entire period of that investment.
Do I need to take any further actions, once I’ve turned on the feature?
No. You’ll automatically receive the higher amount at the end of the investment period.
Do I see the value of my investment compounding each month?
No, but you will receive the total compounded amount on loan maturity.
How do I compound my interest?
As soon as you invest in a live Select-Invest deal, within “My Portfolio” you will see an option to compound your interest for each eligible loan part.
How much difference will compounding my interest make?
On a £5000 loan part @ 7.2%pa over 12 months, compounded monthly, you will earn an extra £12.12. This is an effective annualized rate of 7.44%.
Is compounded interest secured?
Interest is accrued daily, compounded monthly and paid on loan maturity. The total interest is calculated on the day that we repay the loan. Because interest is paid on redemption, compounded interest is not secured.
What if I sell a part of my compounded loan in the marketplace?
You are only able to sell the original capital invested. Upon completion of that sale, you will get the fully compounded interest up to and including the end of the previous day, placed into your wallet.
The purchaser of your loan then has the option to compound their interest should they wish.
What if the loan defaults?
In the event of a repayment shortfall, the order of payment priority will be capital first. Then, all interest due back to investors will be paid proportionally.
What if the loan matures early?
As with all other select-invest deals; if a loan repays early, you will earn interest up until the day the deal is repaid.
What is compound interest?
Each month you earn interest on an amount invested. The amount you have invested remains the same, and so the interest you earn also remains the same. However, reinvesting that earned interest each month increases your investment amount for the remaining period, earning you more interest the following month. This re-investing of your earned interest is called “compounding interest”. Here at Kuflink, we have created an algorithm that mimics the effect of compounding interest, – so your capital remains the same, but each month we roll over your interest to add to the next month’s calculation.
Which products on the kuflink platform can I compound my interest on?
You can choose to compound interest on certain select-invest deals. You will be able to see which loan parts this feature applies to by logging in to your Portfolio.
Interest is compounded automatically for Auto-Invest and IF-ISA terms on the anniversary of the first investment. You can opt-out of this by contacting one of the Investor Relations teams
Why do we offer on some loans and not others?
Kuflink’s Credit Committee chooses the most appropriate deals for compounding before a deal goes onto the platform. So, you may see some select-invest deals are available for compounding, and others are not.
What type of corporate investors can open a corporate account?
Limited companies with a UK registered address.
When can I start investing?
Once you have sent over the required documentation (please see the FAQ: What documentation do you require to open a corporate account?) and have been notified by Kuflink that this has been accepted, you will be able to top up your wallet.
Once this has been reviewed and accepted by Kuflink you can start investing in the deals on the platform.