Many people want to know how we keep your money safe at QuidCycle. We have put together this page to go into a little more detail about how we do that and what features we have in place to ensure you are as protected as possible.
The Provision Fund
We maintain a Provision Fund in accordance with our Provision Fund Policy available on request. We pay into this Provision Fund from the fees paid by borrowers which is included in their own contract rate.
We also review the level of the Provision Fund and top it up as necessary on a monthly basis. In the unlikely case that a borrower has missed a payment, we will apply, on behalf of the Investor, to the Provision Fund to reimburse the Investor for the late payment so that they receive the repayment as normal. We will then start the recovery of the missed payment in accordance with our Arrears policy.
QuidCycle would like to be clear that this does not provide a guarantee and that your capital and interest are at risk if the Provision Fund is depleted by increased borrower defaults.
The Credit Check
We complete a number of comprehensive identity, credit and affordability checks to assess the credit behaviour of a potential borrower over a 3 to 5 year history. This helps provide a more complete picture of the potential borrower and give us some indication into how the potential borrower will cope in the future if we were to give the person a QuidCycle loan. Finally, we refinance without increasing the borrower’s debt exposure. We generally offer the borrower a loan with repayments at the same level or lower than what they currently pay, this way we offer loans at an affordable level.
Your funds are automatically spread across at least 5 borrowers to limit your risk exposure. You also have the choice over the loan term with the shortest being 1 year and the longest loan term being 5 years. Investors have the option to limit only £100 maximum exposure to a single borrower.
We work hard with all of our borrowers to make their repayments on time and help them understand their finances. To ensure the highest quality of borrowers for our investors, we work with responsible UK borrowers - individuals and households who have been keeping up with their repayments and are looking to start a journey where they begin to invest. We are committed to assessing all of our borrowers and making sure to pick the best of the bunch. If you have any questions throughout the process, we are all only a phone call away.
Segregated Bank Accounts
We keep our investors’ funds in a separate bank account to the QuidCycle bank account. This way, in the unlikely event that QuidCycle should cease trading, our investors’ funds will still be accessible.