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P2P lending – lets talk about RISK!

P2P lending – lets talk about RISK! In financial markets, the term Risk usually equates to the ‘exposure to loss,’ which is measured by decisions we make. In order to measure anything, you need a standard, or a starting point, and for risk it is called the Risk Free Rate.

Standardising P2P risk ratings

Pretty much every Peer to Peer lending platform produces a Borrower rating system which identifies the riskiness of  loans to investors. These can vary from alphabetical, numerical, symbolic or a combination but how can investors understand if an A risk on one platform is equivalent as a 5 shield risk

Proplend receives 5 PLUS Rating from 4thWay

Proplend, the Peer-to-Peer Lending platform for secured UK commercial property loans has recently been awarded the maximum PLUS rating of 5/5 for their Tranche A investment and 3/5 for the Tranche B & C investments. 4thWay are the world’s first ratings and research agency for marketplace lending platforms. Their innovative