About Lending Works

One of the fresher peer-to-peer lending platforms, Lending Works opened for business in January 2014.

The site matches lenders with individual borrowers who are looking for a personal loan.


Pros...

  • The Lending Works Shield protects lenders’ money.
  • The Auto Lend facility allows you automatically to reinvest.
  • You might be able to access your money before the end of the loan term.

Cons...

  • Lenders do not earn interest until they have been matched with borrowers.
  • Your capital is at risk.
  • Lending Works is not covered by FSCS.

Provision funds and insurance

The Lending Works Shield offers three layers of protection for lenders.

  • First, the lending platform carries out credit, affordability, fraud and identity checks on all its borrowers.
  • Lenders’ money is then spread across a range of borrowers to minimise the impact of any one default.
  • The Reserve Fund provides a second layer of protection. The fund is topped up using part of the fee paid to the site by borrowers and can compensate lenders in the event of any missed or late payments.

Key Data

  • Amount Lent/Invested: £30m
  • No. UK Investors: 1.4k
  • Avg. Amount Invested: £12.1k
  • Expected Bad Debt Ratio: 1.47%
  • FCA Regulated?
  • Who chooses borrowers? P2P Company
  • Investment secured on Personal Loans
Invest with Lending Works

Innovative Finance ISA

  • Potential Return:

       5%*
  • Term:

      3 - 5 years
  • Min. investment:

       £10
  • Secured on:

       Personal Loans
  • Provision Fund:

       Yes
  • Early exit:

       Yes


3 Year Term

  • Potential Return:

       4%*
  • Term:

      3 years
  • Min. investment:

       £10
  • Secured on:

       Personal Loans
  • Provision Fund:

       Yes
  • Early exit:

       Yes

Interest rates shown are gross annualised, assuming loan repayments are reinvested at the same rate and any bad debt is covered by the Lending Works Shield. You will be responsible for payment of any tax due on your interest.


5 Year Term

  • Potential Return:

       5%*
  • Term:

      5 years
  • Min. investment:

       £10
  • Secured on:

       Personal Loans
  • Provision Fund:

       Yes
  • Early exit:

       Yes

Interest rates shown are gross annualised, assuming loan repayments are reinvested at the same rate and any bad debt is covered by the Lending Works Shield. You will be responsible for payment of any tax due on your interest.


Your capital is at risk if you lend to businesses. Peer to peer lending is not protected by the Financial Services Compensation Scheme. Please read our full risk warning here.