Who we lend to

Pound

At Orchard Lending Club we look for niche sectors for our investors to lend into, as typically not many financial institutions operate there; meaning access to capital is heavily restricted and often inaccessible. We tailor our products to meet borrower’s needs at the same time generating fair returns for our lenders in a responsible manner.

Orchard Lending Club underwrites each loan after conducting its own credit assessment and due diligence. We describe below our lending products and our lending processes.

Our Products:

Insurance Premium Funding

Insurance Premium Funding helps borrowers spread their cost of insurance into monthly instalments. The borrowers are UK based consumers and corporates that meet our strict underwriting criteria.

Term: Amount:
The term varies from 6 – 12 months, with an average term of 10 months. This depends on the type of insurance being financed, however our typical loan size is around £20,000.

We conduct KYC and credit checks to assess creditworthiness, and conduct an affordability assessment to ensure a borrower is able to meet their monthly repayments.

As with any lending, Insurance Premium Funding carries a risk of non-repayment however we believe there are certain factors which mitigate these risks in addition to our underwriting. Insurance is an essential item without which our borrowers would be severely restricted in their business and day to day activities and are thus heavily incentivised to pay on time.

Professions Fee Funding

Professions Fee Funding helps borrowers spread the cost of their legal, accountancy or professional service fees into monthly instalments. The borrowers can be both corporates and individuals that are based in the UK.

Term: Amount:
The term can vary from 6 – 12 months, with an average term of 10 months. This depends on the type of fee being financed, however our typical loan size is around £20,000.

We conduct KYC and credit checks to assess creditworthiness, and conduct an affordability assessment to ensure a borrower is able to meet their monthly repayments.

As with any lending, Professions Fee Funding carries a risk of non-repayment however we believe that the nature of the loans mitigates these risks in addition to our underwriting as a failure by a borrower to pay, will mean that it may not receive an essential accounting or legal service.

School Fee Funding

The School Fee Funding product helps parents spread the cost of their children’s education. The borrowers are individuals and UK Residents. We work with independent schools all over the UK to offer our products to parents.

Term: Amount:
The term varies from 9 – 12 months depending on the borrower Although this varies from school to school, a typical loan size will be around £20,000.

We conduct credit checks to assess creditworthiness, and conduct an affordability assessment to ensure a borrower is able to meet their monthly repayments.

As with any lending, School Fee Funding carries a risk of non-repayment, however we believe that the nature of the loans mitigates these risks in addition to our underwriting. The financing is used for an essential item; the borrower’s children’s education.

Working Capital loans

We provide working capital loans to Professional Firms.

Term: Amount:
These loans can have a maximum term of 60 months. A typical loan size would be of £35,000.

We conduct credit checks to assess creditworthiness, and conduct an affordability assessment to ensure a borrower is able to meet their monthly repayments.

As with any lending, Working Capital Funding carries a risk of non-repayment, however we believe that the nature of the loans mitigates these risks in addition to our underwriting. The financing is used for working capital purposes for a professional firm. If the borrower fails to pay, its regulatory or professional status as well as its business will be at risk.

Default Handling:

Lending always carries a risk of default with it. Although we put all of our borrowers through a strict underwriting process, sometimes circumstances change which mean a borrower is unable to meet their repayments. We will manage the recovery process for you, and will keep you updated all along the process. Below is a high-level outline of our default management process:

1st default – We contact the borrower to let them know that the payment has been missed, and try to find the reason and collect again on the next collection date. We update the platform as soon as this happens to make our investors aware.

2nd default – In case of a second default we notify the borrower of the default and try to agree a re-scheduling of payments due from the borrower. This action is updated on our website, and investors kept up to date.

If the above doesn’t work we would then consider initiating legal proceedings or passing the loan on to a third-party collection agent to conduct the recovery process on our behalf. They keep us (and we in turn the investors) updated on all stages of the recovery process. Any recouped amounts go to the investors first as per our terms and conditions.

**With peer-to-peer lending your capital is at risk and isn’t covered by the Financial Services Compensation Scheme (FSCS).