LendX Financial
Investor Guide

Learn to invest with LendX.

New to peer-to-peer lending? This guide explains how P2P lending works, risk grades, and how your returns are calculated.

What is P2P lending?

Peer-to-peer (P2P) lending connects individual investors directly with borrowers, cutting out the traditional bank middleman. Investors earn interest from the borrower's repayments, while borrowers get access to funding that banks may not provide. LendX facilitates this process, assessing borrower risk, assigning grades, and managing repayments.

How to start investing

1

Create an account

Sign up on LendX and complete your investor profile.

2

Browse listings

Explore live loan listings on the Marketplace, each with a risk grade, rate, and borrower details.

3

Commit funds

Choose loans that match your risk-return preferences and commit your desired amount.

4

Earn interest

As the borrower repays, you receive your share of principal and interest.

Understanding risk grades

Every loan listing is assigned a risk grade from A (lowest risk) to E (highest risk). Higher grades offer lower returns but greater safety; lower grades offer higher potential returns with increased default risk.

A
A Grade · Lowest risk
Strong credit, stable income, low default risk. Lowest returns but highest safety.
Target rate
6-9%
B
B Grade · Low risk
Good credit with minor blemishes. Balanced risk and return.
Target rate
9-12%
C
C Grade · Moderate risk
Average credit profile. Higher returns with moderate default risk.
Target rate
12-16%
D
D Grade · Higher risk
Weaker credit or higher debt ratios. Higher returns, higher risk.
Target rate
16-20%
E
E Grade · Highest risk
Subprime borrowers. Highest potential returns with significant default risk.
Target rate
20%+

How returns are calculated

Your return on each investment is based on the loan's interest rate and term:

Interest = Principal × Rate × (Term in Days ÷ 365)

For example, a $1,000 investment in a Grade C loan at 14% for 90 days:

Interest = $1,000 × 14% × (90 ÷ 365) = $34.52
Your gross return: principal + interest
A 5% platform service fee (+ 13% HST) is deducted from the interest earned
Actual returns depend on the borrower repaying on schedule