Risk

Risk

If you have any questions regarding risk,
please contact us.

Your capital is at risk
Please see the below some of the relevant risks involved with StepLadder’s peer-to-peer model. You should ensure that you read all relevant literature for this product before participating in a circle.

Credit Risk
Stepladder’s business model is based on Peer to Peer Loans and the repayment of those loans is not
a certainty. You may not receive all your capital back.

Liquidity Risk
A peer to peer loan made through our platform is illiquid – you are unable to transfer this to a third
party and you are unable to withdraw from your commitment to continue providing the monthly
amount without StepLadder’s permission.

Borrowing Risk
Once you join a circle and make the first loan you are committed to that circle for the period of the
loan. This applies even where you have already been drawn to borrow money. You should consider if
you will be able to continue to meet payments under this agreement for the duration.
If you are drawn early and obtain a mortgage you may be in a situation where you are both repaying
your mortgage and paying into the circle on a monthly basis. You must determine if – in the even
you are drawn early – you would be able to meet both payment.

No Financial Services Compensation Scheme protection
There is no Financial Services Compensation Scheme (‘FSCS’) protection in relation to the loans
through our platform. Therefore, any losses incurred by the failure of the loans would not be
protected by the FSCS. If StepLadder ceases to exist or goes into liquidation you would not be able to
put in a complaint through the FSCS.

Past Performance
Past performance of loan performance is not necessarily a guide to future performance. Past events,
experience derived from these, or assumptions derived from any of these, do not predetermine the
future.

Impact of fees
Full details of the fees payable by are set out in our terms and conditions, while these fees are
minimal and only for the administration of the circle consumer should consider how these charges
will affect their final deposit amount.

Credit Score
Missed or late payments may have an adverse affect on your credit score.

Platform Risk
If StepLadder ceases to exist or goes into liquidation you may experience delays in receiving your
money or you may not receive this back at all. As above there is no FSCS protection in relation to
peer to peer loans.

No Guarantee of Mortgage
While the purpose of StepLadder’s business model is to assist consumers obtain a deposite for a
property sooner than they would have, there is no guarantee that the individual will be offered a
mortgage. If you are drawn early in the circle you will be borrowing the majority of your deposit and
some lenders do not allow a deposit to be borrowed. You should consider this before participating in
a circle.

No Interest or Returns
If you choose to use the services of StepLadder you will not be earning any interest or returns on the
capital you lend. While you may receive your deposit funds more quickly than you would have
otherwise you will miss out on any return that you may have been able to achieve using a savings or
another investment product.

Regulatory Risk
Peer-to-peer lending is a relatively new industry and the regulation of the industry could change, this
may have an adverse impact on the costs and risk of your investment or result in you incurring
financial loss.

Diversification Risk
Becoming a StepLadder member means engaging in peer-to-peer lending. This could be part of your personal financial planning. It should not be all of your investments.

Portfolio Investment Risk
As with any financial portfolio, we recommend that members spread their risk. We aim for this to be a core feature of StepLadder circles, in that your fixed monthly contributions are loans to a different member of your circle each month. Your maximum exposure to any one other member is a single month’s payment.

Is Peer-to-Peer Right For You?
Not all financial products fit your criteria. Carefully if StepLadder is right for you. Before joining a circle, please consider if you have the knowledge you need to understand the proposition and how it can affect your money. We are available by phone, email, and web chat to answer your questions as part of this important process.

Third Party Commission
Although you are under not obligation to use them, some of our trusted partners pay us a commission should you choose to.