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The Appropriateness Multiple Choice Test Guide (APT)

The Appropriateness Multiple Choice Test that an Everyday/Retail or Restricted Investor, Sophisticated or High Networth Investor must pass before Investing in a P2P Agreement.

The relationship between the Borrower,
The Lender and Kuflink

When investing with Kuflink you will see there is an article 36H document, this is the contract between borrowers and lenders. Kuflink facilitate and manage this and are responsible for collecting and making capital and interest repayments but remember, as with any investments, capital is at risk and so if the borrower doesn’t repay or there are delays with the money coming back to Kuflink, there is no guarantee that you will get all your money back.


Due Diligence On Loans

Kuflink conduct due diligence on the borrowers such as assessing their creditworthiness, ID checks, arranging for a valuation to be undertaken and arranging for the legal charge to be registered. Kuflink will price the loan according to risk and will deal with the whole application process etc. You will never have to seek any repayment from the borrowers directly nor do you need to do any due diligence on the borrowers.


The risks of P2P investing

As your funds are lent directly to borrowers there is a risk in that a change in circumstance could mean the borrower is unable to meet their repayment obligations and so Kuflink cannot guarantee that your money is safe.

Kuflink does however do everything it can to manage this relationship with the borrower to collect repayments on behalf of the investors. If repayments are late or if the borrower fails to repay their loan Kuflink cannot guarantee repayment of all of your funds.

Although Kuflink does co-invest up to 5% into every Select Invest deal and all deals are secured against property, this does not mean there are no risks involved.


Investing on The Platform

Investing via the Kuflink Platform is different to having a savings account, your investments are not covered by the Financial Services Compensation Scheme and you are not able to get instant access to your funds once invested.


Access To Funds

When you invest via Kuflink, you are tied in for the duration of the loan term unless you use Kuflink’s Secondary Market and sell your loan parts to another investor. There is no guarantee that someone will buy your loan part, and a small fee is applied to the Seller if someone does buy the loan part from you. Unfortunately, in line with the Secondary Market terms of use, you are unable to list a loan part for sale that is in default or arrears, and the Secondary Market is only applicable to Select Invest loan parts.



The Advertised Rate

All rates that Kuflink show are the rates that you are expected to earn at the time of your investment, there are however different factors that could affect this such as if the borrower doesn’t repay or the loan doesn’t perform as it is expected to throughout the term.