Risk Warning

Peer-to-peer lending and marketplace investing carry the risk of losing part or all of the money you put in. The following risks apply to every platform listed on this site, including Maclear, and you should understand them before you invest a single euro.

Capital at risk

When you lend money through a P2P platform, you are funding loans to businesses or individuals. Those borrowers can default. When they do, you may recover nothing, part of your principal, or occasionally the full amount after a delay. There is no guarantee that you will get your money back.

No compensation scheme covers borrower defaults on any platform listed here. EU investor compensation schemes, where they apply at all, cover claims against the platform firm itself in the event of insolvency or misconduct. They do not cover the underlying loan book. If a borrower stops paying, you carry the loss.

Platform failure

Platforms can and do fail. Between 2020 and 2024, several European P2P platforms either froze withdrawals, entered administration or wound down operations. Investors in those cases recovered between nothing and roughly 58 cents on the euro, depending on the structure of the loans and the solvency of the originators.

A platform that holds a licence or operates under an ECSP registration is supervised for conduct and disclosure. That supervision does not prevent failure, and it does not guarantee that your money will be returned in full or at all.

Advertised versus realised returns

Returns advertised by a platform are targets, not promises. Realised returns are normally one to four percentage points lower than the advertised figure, once you account for defaults, delays, fees and the time it takes to deploy cash.

Historical performance is not a reliable guide to future results. A platform that has paid out reliably for five years can still encounter a wave of defaults or a change in the quality of its loan book.

Illiquidity and lock-ups

Most P2P loans run for months or years. Even platforms that offer a secondary market or an auto-sell function cannot guarantee that you will find a buyer when you want to exit. In stressed market conditions, secondary markets dry up and withdrawal queues can stretch for weeks or months.

Some platforms impose formal lock-up periods, during which you cannot access your money at all. Others allow early exit in theory but make it impractical through fees, discounts or lack of buyers.

Concentration risk

Many platforms source a large share of their loans from a single originator or a small group of related companies. If that originator fails or stops performing, the entire loan book can be affected at once. Diversifying across platforms does not eliminate this risk if multiple platforms rely on the same underlying lenders.

Currency and cross-border risk

Platforms operate across borders. Loans may be denominated in currencies other than the euro, and some platforms lend into jurisdictions with weaker legal systems or higher political risk. Cross-border recovery is slower and more expensive than domestic enforcement.

Tax

Tax on P2P lending income is your own responsibility. Most EU member states treat interest and capital gains from P2P lending as taxable income, and you are required to declare it. Platforms do not withhold tax on your behalf in most cases, and they may not provide the exact forms your tax authority requires.

Nothing on this site is tax advice. Consult a qualified tax adviser in your own country before you invest.

Not a personal recommendation

Nothing on this site is investment advice, and nothing here is a personal recommendation. The ratings, comparisons and commentary reflect editorial opinion based on published data. They are not tailored to your individual circumstances, your risk tolerance or your financial goals.

You are responsible for deciding whether P2P lending suits you, which platforms to use, how much to invest and when to exit. If you are unsure, speak to a regulated financial adviser before you act.

Site relationship with Maclear

This site is run by an affiliate partner of Maclear and earns a commission when readers open an account through its links. That relationship is disclosed at the top of every page and does not change the risks described above. Maclear carries the same capital risk, the same lack of borrower-default compensation and the same platform failure risk as every other marketplace listed here.

For further detail on how ratings are assigned and how the site makes money, see How we rate and How we make money.