Financial Advisors and Zopa

For financial advisors and their clients, Zopa provides a sensible and ethical alternative to savings and cash investments

Get in touch

advisors@zopa.com
020 7291 8331

How does Zopa work?

Watch our video to find out how Zopa works

Show transcript

Transcript

At Zopa, we match people looking for a great return on their money with people who want to borrow money, cutting out the banks so that both sides get a better deal.

It's easy to lend with Zopa: set up an account, transfer your money and it is automatically split into small loans that are lent to lots of different borrowers, each at a fixed rate.

Each month, borrowers make regular repayments of both the loan and interest. These go back into your Zopa account to be lent to new borrowers, which means you're lending out your original amount, and the interest you've already earned so your money grows over time.

You can access your money at any time by withdrawing the repayments or by selling your loans in a lump sum to other investors – for a 1% fee in Classic and Plus and for no fee in Access.

We lend to carefully selected borrowers, but if a borrower is unable to meet their repayments we'll investigate and take the necessary action. In the event that they can't repay the loan we have the Safeguard fund to protect you by covering investor losses, provided there is enough in the fund – it's not a guarantee, but to date it has paid out all covered loans.

If your money is invested in a non-Safeguard product, you will experience some capital loss when a loan defaults. We have measures in place to protect investors, but it's important to recognise that your capital is at risk. With Zopa, it's easy to lend online, and our award-winning customer support team is ready to help if you have any questions.

Join tens of thousands of people who are getting more from their money while helping borrowers get a better deal with Zopa.

With peer-to-peer lending your capital is at risk, our risk statement has the details. Zopa isn’t covered by the Financial Services Compensation Scheme (FSCS).

“Once I retire I will be able to choose to continue to re-invest or take some or all of the returned interest from loan members as a valuable income.”

— David from Dorset lent £10,000

How Zopa minimises risk

Watch our video to find out how Zopa manages risk

Show transcript

Transcript

At Zopa we've been lending for more than 10 years, and have an unrivalled track record of performance. We help investors minimise risk in three ways:

  1. We lend to carefully selected borrowers who meet our strict criteria that we have developed over 10 years.
  2. We diversify your money by splitting it into smaller amounts – micro loans – which are lent across a range of borrowers. We do this to ensure that only a small amount of your money is lent to an individual borrower, so if one borrower cannot repay their loan, this will only impact one micro loan in your portfolio. This reduces your risk and provides you with much more stable returns.
  3. If a borrower does miss a payment and goes into arrears you don't need to do anything: we'll investigate and take the necessary action. If a borrower misses four consecutive payments, the loan is defaulted.Our Safeguard fund was set up in 2013 to protect investors by paying back loans that default, so you can get your capital and any interest owed. It's not a guarantee, but it has covered 100% of eligible loans to date. If your money is invested in a non-Safeguard product, you will experience some capital loss when a loan defaults.

We publish our loan book performance data in full for anyone to see, because we believe in being held accountable for our performance.

Selective investing

Zopa has some of the lowest default rates in the industry because we're very selective about who can borrow. We give loans to sensible people who can afford to repay them. Borrowers are all over 20 years old, UK residents for over 3 years, earning at least £12,000 a year (typically £30-40k) with a solid credit history.

Diversifying investments

Investors' money is automatically spread across multiple sensible borrowers to diversify risk and a maximum of 2% of an investor's money which is on offer with Zopa at any time is lent to any one borrower

Zopa's Safeguard Trust

Zopa's Safeguard Trust is designed to protect you from potential losses. Safeguard has a 100% track record of protecting investors from defaults since launch. Safeguard is currently 1.2 times bigger than what we expect to cover. It's held in trust by a not-for a profit company, but it's not covered by the Financial Services Compensation Scheme.

With peer-to-peer lending your capital is at risk, our risk statement has the details. Zopa isn’t covered by the Financial Services Compensation Scheme (FSCS).

“Zopa is the pioneer of peer-to-peer lending, which uses the internet to cut out the banks entirely. It matches savers with individuals who want to borrow, leaving out the bank and offering better rates all round.”

The Guardian

Want to find out more?

Fill out your details and one of our London based investor support team will be in touch to help answer any of your questions.

We're here to help

To date, we've helped 63,000 individuals invest over £1.96bn

Monday to Thursday (9am to 5:30pm), and Friday (9am to 5pm).

Email: contactus@zopa.com

Telephone: 020 7291 8331

UK residents only. Calls may be monitored or recorded.