Provision Fund

Designed to help protect lenders from borrower late payment or default on an ongoing basis.

Reducing the risk of peer-to-peer lending

How the Provision Fund works
The money in the Provision Fund comes from charges paid by borrowers. RateSetter is able to direct the Provision Fund trustee to compensate a lender in the event of a borrower late payment or default. Though we believe the Provision Fund provides meaningful protection for investors, it is important to remember it is not a guarantee nor an insurance product, and your capital is at risk. Read our Product Disclosure Statement for more information.

Estimated Provision Fund coverage

A key determinant of whether a claim is made on the Provision Fund to compensate lenders in the event of a borrower late payment of default is whether there is more money in the Provision Fund than there are expected defaults on outstanding RateSetter Lending Platform loans.


Value of loans outstanding**


Provision Fund Buffer**


Current estimate of bad debt***


Provision Fund Coverage Ratio

** The value of loans currently outstanding for which RateSetter may make a claim on the Provision Fund.

*** The current estimate of bad debt is based on our analysis of borrower credit characteristics and the amount on loan. Our estimate of bad debt may change at any time.

A proud track record

RateSetter in the United Kingdom was the first peer-to-peer lender globally to introduce the concept of a provision fund to compensate lenders in the event of a borrower late payment or default.

We're proud that in Australia our Provision Fund has ensured that every single one of our investors has received every amount of principal and interest due to them. Our number one objective is to maintain this track record on an ongoing basis.

Frequently Asked Questions

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