As with all Peer-to-Peer lenders, the biggest risk posed to investors is if one of their borrowers does not repay their loan, this means that lenders’ capital is at risk. Peer to peer lending involves matching investors who want a better return on their money with borrowers who require a loan at a fair interest rate. Find out more about Borrower Defaults here: https://www.wellesley.co.uk/investor-security/what-are-the-risks/

1. What happens if a borrower defaults?
What happens in default?
 If a loan falls into default, due to a breach in the loan agreement, Wellesley Finance Plc
would take charge over the asset. In the case of a property security, we would appoint an
LPA Receiver to seek to liquidate the asset and recover the sum of the debt and fees
owed. Wellesley Finance Plc does not lend over 75% of the loan to value of loan collateral
to increase the probability of full recovery of a loan.
What does a lender have to do if a borrower
defaults?
 Wellesley Finance Plc will manage the enforcement process on behalf of investors. All
loan security is held by Wellesley Security Trustees Limited. The beneficiaries of
Wellesley Security Trustees Limited are the investors in Wellesley & Co.
What is the risk of default?
 As will all Peer to Peer lenders, the biggest risk posed to investors is if one of their
borrowers does not repay their loan.
 The spread of risk means that in the case of default only a proportionate amount of the
lenders investment will have been affected.