Understand the risks.
Peer-to-peer lending and short-term borrowing carry financial risks. Please read this disclosure carefully before investing or borrowing.
This disclosure is provided for informational purposes and does not constitute financial or legal advice. You should consult a qualified professional before making investment or borrowing decisions.
Risks for investors
Risk of Default
Borrowers may fail to repay all or part of their loan. While we assess creditworthiness and assign risk grades, there is no guarantee that any loan will be repaid in full. You could lose some or all of your committed capital.
Illiquidity
Once you commit funds to a loan, your capital is locked for the duration of the loan term. There is no secondary market to sell your position early. You should only invest funds you can afford to have tied up for the full term.
No Guarantee of Returns
The interest rates shown are projected returns based on the borrower repaying on schedule. Actual returns may be lower if payments are late, partial, or missed entirely.
Regulatory Uncertainty
P2P lending is subject to evolving securities and lending regulations in Canada. Regulatory changes could affect the marketplace, your investments, or the platform's operations.
Risks for borrowers
High Cost of Borrowing
Short-term and payday loans carry significantly higher APRs than traditional bank loans. They are designed for short-term needs, not as a long-term financial solution. Failure to repay on time increases costs further.
Impact on Credit
Late or missed payments may be reported to credit bureaus and negatively impact your credit score, making future borrowing more difficult or expensive.
Debt Cycle Risk
Repeatedly relying on short-term loans can lead to a cycle of debt. If you are in financial difficulty, contact a non-profit credit counsellor before borrowing.
Legal Obligations
By signing a loan agreement, you are legally bound to repay. Default may result in collection action, additional fees, and legal proceedings.
If you're in financial difficulty
If you are struggling financially, contact a non-profit credit counsellor before taking on new debt. Free resources are available through the Financial Consumer Agency of Canada and provincial credit counselling services.