A benefit of investing via a platform like Lendy is that you never have to deal with borrowers directly. We do all that for you.

An associated risk of this, however, is that if Lendy were to fail, investors would not have direct access to borrowers to recover their money.

In order to mitigate this risk, we have taken a number of precautions:

• Back-up servicer

  A key part of this plan is our appointment of a back-up service provider (Baker Tilly Creditor Services LLP). We have an appointed global business process outsourcing company that would step in and run our business as if we were fully operating, in the unlikely event that Lendy were to become insolvent. This is designed to minimise any potential disruption to you and give you confidence in your investment.

• Segregated Client Account

  We hold all our investors' money in a segregated client account with Barclays Bank plc, so that your money is kept separate from our other assets. Any amounts, which are due to you from the proceeds of a sale of property (or any other security) will be held on trust for you and paid into the segregated client account. If Lendy were to become insolvent, an insolvency practitioner would be appointed and would distribute the funds in the segregated client account back to investors. Investors' money in the segregated client account would not be distributed to our other creditors.

• Segregated Security Holding

  All security (i.e. the Legal Charge and any debentures) are held by a third-party security trustee – Saving Stream Security Holding Ltd. This company exists solely to hold security for and on behalf of our investors and this adds an additional layer of security to provide comfort to our investors.

• We are well-capitalised and profitable

  Past performance is not an indicator of future returns, but it is a significant factor for investors to consider.

  If Lendy were to become insolvent, there are various different insolvency procedures that could apply (including administration and liquidation) depending on the circumstances.

  In most cases, an insolvency practitioner would be appointed with a view to either rescuing Lendy as a going concern, achieving a better result for creditors than might otherwise be achieved, or realising the assets of Lendy to make a distribution to creditors.