The yield that we are showing is the AER because we feel that this is the best comparison for our lenders. It provides a consistent methodology that allows you to compare loans that pay monthly against loans that pay quarterly or semi-annually. It also allows you to compare loans against other products.
Whilst the AER allows you to make a comparison against other financial products, Lending Members should always bear in mind that our loans carry a higher AER than a regular savings account because the products are not identical.
In the event of a loss or a default on a loan through Ablrate, you will have no recourse to the FSCS protection and so your capital is at risk. Loans on Ablrate are not savings accounts, you have limited access to your money (if at all, until you are able to sell your loans on the Secondary Market), the funds are not insured and not protected by the Financial Services Compensation Scheme. You can lose some or all of the funds you have invested in Ablrate loans. For more clarification of risks please see our Risk Section.