How LendX underwrites & manages risk.
Our lending criteria, risk management policies, and expectations for participating in the P2P marketplace — built on transparency and regulatory compliance.
Who qualifies to borrow
Every borrower must meet four core criteria before a loan request is listed on the marketplace.
Identity Verification (KYC)
Every borrower completes Know-Your-Customer checks — government-issued ID, identity match, and sanctions screening — before any listing goes live.
Income Verification
Borrowers must demonstrate a verifiable income source (employment, self-employment, government benefits, or retirement). Minimum thresholds vary by product and risk grade.
Credit Assessment
A soft credit check informs an internal risk score. No traditional hard pull occurs without explicit consent at signing. Score informs grade, not eligibility alone.
Banking History
An active Canadian bank account with reasonable activity is required for disbursement (Interac e-Transfer) and repayment (pre-authorized EFT).
Policies that protect capital
Risk-Grade Assignment
Each application is graded A, B, or C based on income stability, banking history, and prior repayment. Grade sets the rate range and maximum loan amount — not a binary approve/decline.
Diversification Limits
No single investor may fund more than a capped share of any one listing, and investors are encouraged to spread commitments across grades to manage portfolio risk.
Conservative Default Assumptions
Projections bake in default assumptions (e.g., ~20% on payday book). Revenue and returns are modeled conservatively, not on best-case scenarios.
Legal-Backed Collections
Delinquent accounts are resolved through NEO Legal Services (LSO #P21785), providing structured, compliant collections — a structural edge that protects investor capital.
What investors need to know
Participating in the LendX marketplace is subject to these expectations and acknowledgements.
Accreditation & Onboarding
Investor participation is subject to regulatory approval and LendX onboarding. The marketplace is not a solicitation to invest or an offer of securities.
Risk Acknowledgement
P2P lending carries risk of loss. Past returns do not guarantee future performance. Investors must acknowledge they may lose some or all committed capital.
Fee Structure
LendX collects a 5% lender fee on each funded commitment, plus origination (2–5%) and servicing (1–3%) fees. Full disclosure is available on the Fee Disclosure page.
No Liquidity Guarantee
Funded commitments are typically held to loan maturity. Early exit is not guaranteed and depends on secondary-market availability.
Important: The P2P marketplace is subject to regulatory approval. Nothing on this site constitutes a solicitation to invest or an offer to sell securities. Investor participation carries risk of loss.