Become a private lender
Private lenders have been at the core of the Ablrate community since 2014. Lending on the platform is based on ‘self-select’ lending, this means that you evaluate the information provided by Ablrate and the Borrower and make your decision whether to invest or not. You are in charge of who you lend to, how much and for how long.
Ablrate is no longer accepting new clients and has initiated a wind down of our loan book.
Easy account opening
We have automated gadgetry that checks your data against a number of databases, allowing you to register quickly. We will fulfill our regulatory obligations to ‘Know Your Client’ without it affecting your credit score.
By making sure all lenders are verified we protect the Ablrate lending community as whole.
When lending to businesses your capital is at risk, please familiarize yourself with the risks before lending. When invested in a loans your funds are NOT covered by the Financial Services Compensation Scheme. Please see our Frequently Asked Questions section for further information about P2P lending and the risks involved.
Customer services
Our Customer Services Team at Ablrate HQ will be your point of call if you have any questions or issues on the platform.
We aim to provide an unsurpassed service so please get in touch if you need any assistance.
Tax-free lending
Once you are in, you will be able to open an Innovative Finance ISA with a click of a few buttons, should you wish. You can also transfer in existing ISA monies. We attracted over £1m in the first week.
All the income and any capital gains you gain within the IFISA account will be free of tax.
Your capital is at risk when investing in loans to businesses. The tax free status of the IFISA is dependent on individual circumstances and maybe subject to change in the future.
Asset backed
Our borrowers provide us with assets to secure the loans that Ablrate lenders’ make. These can be everything from machinery, waste, energy technology units and property to yachts, equipment and even aircraft.
As well as the assets mentioned, personal/corporate guarantees and debentures are also requested to form the security suite in a transaction. We aim to be able to liquidate this security suite if a borrower fails to pay the money that is owed. Your capital is still at risk however, as we may not be able to sell the asset for the amount of the outstanding loan in a timely manner, so please do check the information we provide and make a decision based on the level of risk you are willing to take.
Due diligence
To explain our due diligence, each borrower produces a ‘Borrowing Proposal’ which lenders are able to download. This document lays out the project, the security, the people involved, how you will be paid and how the loan will be paid back.
It also explains the risks and disclosures specific to that loan allowing you, the lender, to make informed choices about who to lend to and how much to lend.
Diverse assets
We all know that diversification is a key part of balancing our portfolio, so diversifying by asset class should also be considered.
While we do property transactions we do approve borrowing requests against a variety of assets and business types, to make sure that we are not concentrated in one asset class.
Secured lending
Each loan on Ablrate is backed by an asset such as property, land, equipment or other company assets. In the event that a loan does not perform as intended we can repossess the asset and sell it to aid the recovery of the capital to lenders.
Even with an asset in place there is no guarantee that the asset can be sold at a price that will cover all of the outstanding capital and interest of a loan, or that the asset can be sold in a timely manner, so there is still a risk of loss. There is no guarantee that all capital can be recovered, but our job is to make sure that a diverse portfolio of Ablrate loans will produce a positive return to lenders, including the recovery from asset sales.
Frequently asked questions
What are the risks of lending?
Who determines the interest rate?
Can you explain the fees and how these are treated in a default?
Lenders Fees
Account Fees - There are no fees associated with opening or maintaining an account with Ablrate. Loan Exchange Fees - There is a fee of 0.25% of the value of the trade for a seller and a buyer. At...Could the return on my investment be different to that advertised, over time?
Does Ablrate manage the process of lending?
Self-select loans
When you have registered an account you will see a number of loans that are available on our Primary Market – new loans that have not been filled yet – and loans on our Loan Exchange.
We allow you to be in control of when to buy and when to sell. You choose which loans to invest in, not a faceless algorithm.
Many of our borrowers have repeat loans for other parts of their business. Our largest borrower has borrowed over £12 million and returned £6 million in capital with over £2 million in interest. You can choose to invest in loans from your favorite entrepreneur on Ablrate or diversify across all loans and reduce your overall risk.