Risk Warning

1. Loss of Capital

Lending to businesses can lead to a loss of your capital and there is a risk that the companies or individuals you lend to may default. You should not lend more money than you can afford to lose. If you are unsure about any aspect of the information provided, you should seek advice from an independent financial adviser.

2. Illiquidity

Any lending you carry out through Fundshare will be highly illiquid. There is currently no active secondary market for the loans you take part in, although they are transferable if you are able to find a willing transferee. Even for a successful loan that is being repaid on time by the borrower, the underlying principal debt you have lent will not be accessible to you until the loan expires. In particular, if you are over the age of 60 at the time of lending you should consider the effect this illiquidity could have on your lifestyle.

3. Diversification

Lending to businesses should be done as part of a diversified portfolio. This means that you should invest small amounts in multiple asset classes as opposed to a large amount in one or a few. You should also invest only a small proportion of your investable capital in this asset class, with the majority of your investable capital invested in safer, more liquid assets. You are able to further diversify by lending to multiple businesses through Fundshare. 

4. Tax

You are responsible for the administering of your own tax affairs, which may include capital gains and/or income tax. Each time you lend, you must satisfy yourself prior to making any commitment that you understand and accept the tax consequences to you. We do not provide tax advice and you should seek this independently before lending if you are unsure of your position. It is your responsibility to ensure that your tax return is correct and is filed by the deadline and any tax owing is paid on time. If you are unsure how this investment will affect your tax status you must seek professional advice before you lend.

Tax treatment is dependent on the individual circumstances of each client and may be subject to change in the future.   

The tax-advantaged status of the IFISA is subject to the continuation of the Individual Savings Account regime by HM Revenue and Customs, which could alter it at any time

5. Financial Services Compensation Scheme

Lending through Fundshare is not covered by the Financial Services Compensation Scheme.

6. Advice

Fundshare does not give investment advice or provide analysis or recommendations regarding investment opportunities. Investments can only be made through Fundshare on the basis of information provided. Fundshare takes no responsibility for this information or for any recommendations, opinions or predictions.

7. Past Performance

Past performance is not a reliable indicator of future results. You should not rely on any past performance as a guarantee of future investment performance.

8. Future performance

Companies may provide forward-looking statements with respect to future results. Forward-looking statement are not guarantees of future results or performance and many different factors could cause actual results to be different from those that may be expressed or implied by such forward-looking statements. As such, forecasts are not a reliable indicator of future performance.

9. Lack of Operating History

Many companies on Fundshare are recently formed entities and have no substantive operating history upon which prospective investors can evaluate likely performance.

10. Currency exchange rates fluctuate

Fundshare may from time to time also provide lending opportunities where the loan might not be denominated in GBP. We will clearly mark those opportunities. Lenders should note that while we will undertake to hedge all currency risk for their and the borrower’s benefit, variations/fluctuations in market and currency can affect the repayment of the principal amount of the loan and of any interest.

11. Client Classification

Before being allowed to lend, you will need to be classified as an investor type. You will need to provide the relevant information to the platform, which you warrant to be truthful and accurate, in order to be classified. Please follow the steps when signing up to complete this process. If you no longer fall into at least one of the categories of investor available, you will be required to give immediate written notice to the platform and you will not access, or try to access the service unless and until you fall into one or more of these categories again.

12. Jurisdication

The information and services provided on the site are not provided to, and may not be used by, any person or entity in any jurisdiction where the provision or use thereof would be contrary to applicable laws, rules or regulations of any governmental authority or where Fundshare is not authorised to provide such information or services. Some products and services described on the site may not be available in all jurisdictions or to all clients.

This list of risk factors does not purport to be a complete enumeration or explanation of the risks involved. Prospective lenders should read the relevant companies’ pitch documents in their entirety and consult with their own advisers before deciding whether to lend. If you are unsure about any aspect of the information provided by the company, you should seek advice from an independent financial adviser.


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.