As with any lending, there are risks, including the risk that a borrower is late in making payment or defaults on their loan.

RateSetter takes a number of measures to help minimise the risk of lenders losing money due to borrowers being late in making payments or defaulting on their loan:

  • We are very cautious about who can borrow. Before any borrower is approved for a loan, they are identity checked, credit checked and risk assessed by our underwriting team. RateSetter only lends to creditworthy Australian-resident individuals and businesses. You can view statistics about our credit performance by registering as a lender (this is free and there no obligation to lend) and clicking the "RateSetter data" tab
  • The Provision Fund is designed to help protect lenders from loss. The Provision Fund is not a guarantee nor an insurance product, but thanks to the Provision Fund no RateSetter lender has lost a cent of principal or interest due to them. Learn more about the Provision Fund
  • We employ an experienced, specialist collections agency to help us retrieve late payments or defaulting loans
  • Until a lender’s funds are lent out they are held on trust by an independent custodian on trust in a bank account with an Australian Authorised Deposit-taking Institution
  • To satisfy obligations under our Australian financial services licence (AFSL) and Australian credit licence (ACL) we undergo a number of external audits every year to ensure that lender funds are properly accounted for and our platform is operating as it should


Read our Product Disclosure Statement to learn more about the risks of investing