Our Loan Rating System

This loan rating system is designed to indicate the risk level of each investment opportunity on the platform. An A1 loan is considered to be lower risk and a C3 loan is considered to be higher risk.

The level of risk is determined using an algorithm that measures numerous variables such as the LTV, the location of the security property, the borrower's credit score, the legal charge that we hold over the security and many other variables.

Default Rates by Risk Category

As with all P2P investment platforms your capital is at risk.

We are sure you will have seen all our risk warnings (such as capital is at risk & Kuflink is not protected by the FSCS) that our compliance team make sure we put everywhere. We also categorise our deals with a risk rating, below is a quick chart to show the default rate % over the years allocated to each category.

FCA's Default Definition

A loan is in default when the borrower is past the contractual payment due date by more than 180 days (approx. 6 calendar months).

Rates below taken on April 27th of each respective year.

Kuflink's Default Definition

A loan is in default when it is 1 calendar month past a missed payment, with this payment still outstanding. This may be a monthly servicing payment or the full repayment at the end of the term.

The rate (as a percentage) is the total of the gross loan amounts in default divided by the total gross loan amount over the same period times by 100.

Rates below taken on April 27th of each respective year.

In the event a loan goes into default as a result of late payment of interest or capital, Kuflink will immediately start taking actions to recover the funds or remedy the loan on our investors’ behalf. You will continue accruing interest until the loan is repaid. To date, our investors have not had any losses as a result of defaults.