How we manage risk on our platform?

The key risk to our lenders is increased borrower default rates. We seek to mitigate this risk through:

  • DIVERSIFYING: When you invest through FundColony we encourage our lenders not to put their money in one loan. Our platform ensures a borrower sets a maximum amount to be lent to a borrower at any point in time.
  • EXCELLENT CREDIT UNDERWRITING: Robust and thorough credit checks on all borrowers. We take a careful approach to lending and only lend to creditworthy borrowers.
  • PROACTIVE LOAN MANAGEMENT: When helping our borrowers plan their cash flow and loan repayment to ensure timely repayment of loans. We are always on the lookout to see a sign of distress before a default occurs.

FundColony Lenders’ Risk Statement

FundColony enables you to make personalized rate loans of 1 to 6 months to many other people/small business owners under individual Loan Contracts. FundColony is not a party to those Loan Contracts but agrees to administer them on the terms of the FundColony Principles. Before we allow each Borrower to receive your money, we make identity, fraud and credit checks. We also use the Borrower’s credit reference, and certain additional Information that we verify, to assess the affordability of the loan. If we find that the information was inaccurate or deficient the Loan Contract will not proceed.

Your loans are repayable to you via the FundColony Account in monthly installments of principal and interest. You lend your money in small amounts to different borrowers, so if one borrower cannot pay you are less likely to lose your entire capital, although your overall rate of return may go down. Missed payments will be pursued by our collections team and external partner agencies, unless or until a default occurs or the Borrower dies or is unable to pay. The amount of income tax payable is dependent on your individual circumstances and you are encouraged to make payment to the tax authority based on a self-assessment.

When a default occurs, FundColony will immediately commence recovery of the debt due under the relevant Loan Contract and any sum recovered will be paid to the lender, less any enforcement costs that could not also be recovered.

*Please note that FundColony’s customers do not have recourse to the Nigerian Deposit Insurance Corporation.