How Zopa manages risk

It's true that peer-to-peer investing is riskier than cash savings. But it can also be more rewarding. Find out what we do to manage risk, and check our numbers to see how we've done in the past.

Remember past performance is not an accurate indicator of future performance.

Zopa investments fund personal loans

We only invest your money in personal loans. It's a type of investment that we have over 13 years' experience in, and we use the results that we've achieved in the past to inform our lending policies.

View our risk performance

View our risk markets

When you invest your money, your capital is at risk and is not protected by the Financial Services Compensation Scheme (FSCS). Tax treatment depends on individual circumstances and may be subject to change in the future. Our risk statement has all the details.

We put your eggs in many baskets

We can't promise you that all borrowers will repay all the time, and that you'll never have a default. It's just not the way peer-to-peer works. A borrower could have an accident and be unable to work: these are the unexpected life things that are hard to predict.

So we make sure no one borrower holds all of your investment. We break it down into chunks and spread it across different loans. So if one loan goes wrong, it won't have an impact on your other healthy loans.

Bottom line: we expect some missed repayments and defaults, and so should you. We take them into account when we calculate the latest market returns on all our products. And we do everything we can to help borrowers get back on track with their repayments.

Managing missed payments

We always try to help our borrowers get back on track should they miss a payment. If they reach 4 months' worth of missed repayments, their loan is classed as a default and we begin our recoveries process.

After 4 months of missed payments, we would count the default as a capital loss (some of your original investment would be lost), and this amount would be deducted from your investment total. We'll still work to make recoveries on these loans, and anything we do recover will be added to your Zopa Total.

Total accountability

We've been operating since 2005. We firmly believe in transparency in order to be held accountable to our customers and regulators. Zopa Limited is authorised and regulated by the Financial Conduct Authority (firm registration number 718925).

If Zopa were to go out of business, we have planned to use loan servicing fees to cover the ongoing costs of managing our loan book.

Operational risk mitigation policy

We're here to help

Since 2005, more than 76,000 investors and institutions have lent over £3.92bn with us.

Monday to Thursday (8am to 8pm), and Friday (8am to 5pm).


Telephone: 020 7291 8331

UK residents only. Calls may be monitored or recorded.