Plenti has put in place a number of measures designed to minimise the risk of investors losing money due to borrowers making a late payment or defaulting on their loan.
Firstly, we are very cautious about who can borrow using Plenti. Before any borrower is approved for a loan, our underwriting team verifies their identity, checks their credit, and assesses their risk. Plenti only lends to creditworthy individuals with Australian residency. You can view statistics about our credit performance by registering as an investor (this is free and there no obligation to lend) and clicking the "Plenti data" tab.
Secondly, the Provision Fund exists to help protect lenders from loss. The Provision Fund is not a guarantee nor an insurance product. However, thanks to the Provision Fund no Plenti investor has lost a cent of principal or interest.
Thirdly, we employ an experienced, specialist debt collection agency to help us retrieve late payments or defaulted loans. Until an investor’s funds are lent out, they are held in trust by an independent custodian in a bank account at an Australian Authorised Deposit-taking Institution.
Finally, to satisfy obligations under our Australian financial services licence (AFSL) and Australian credit licence (ACL), we undergo a number of external audits every year. This ensures that investor funds are properly accounted for and our platform is operating as it should.