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Lender Borrower Advisor

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There are key safeguards in place to protect investors as much as possible:

1. Wind Down Plan FCA regulations require all lending platforms to have a structured wind down plan. This often includes appointing a third party firm to manage lnvestment repayments and recoveries, ensuring that borrowers continue making payments to investors.
2. Direct Loan Agreements Investors’ contracts are directly with borrowers, meaning that even if LendCart were to fail, borrowers remain obligated to continue making repayments.
3. Client Money Protections Any funds held by LendCart on behalf of investors (such as uninvested cash) would be stored in a segregated client account, ensuring they are not mixed with company funds and would be returned in line with FCA regulations.
4. Capital at Risk & No FSCS Protection Since this is an investment rather than a deposit in a bank, there is no protection from the Financial Services Compensation Scheme (FSCS). Investors bear the risk of borrower defaults or losses in the loan portfolio.

What happens in the event of a real estate lending platform failure?