Peer-to-peer lender Funding Secure goes into administration – what you need to know

What is peer-to-peer lending?

Peer-to-peer lending websites are industrial-scale online financial matchmakers. With no banking middleman, investors who put up cash for lending can get rates much higher than from a savings account, while borrowers often pay less than with a conventional loan. The sites themselves profit by taking a fee.

But investing your money this way is NOT like traditional saving, as there's no savings safety guarantee and you could lose your money. It may also be hard to get your money out early and your cash may not be lent straightaway, so you may get no interest for a while. See a full list of risks.

I'm a creditor/investor – will I get my cash back?

It's too early to say how much money will be returned to creditors and investors, according to the administrators, and when any payments will be made to them.

The administrators say they will continue to evaluate the situation and keep people informed. They have set up a dedicated email address for creditors to contact the administration team at fundingsecure@cg-recovery.com.

The activities of P2P firms are not covered by the Financial Services Compensation Scheme, so investors won't be able to get money back through this.