Risk & Security
What the risks are, in plain English
Security shapes a lender's position if things go wrong. It does not remove the possibility that they do.
Peer-to-peer lending carries real risk. Payments can be delayed, borrowers can default, recovery takes time and costs money, and lenders can lose some or all of the capital they lend. Property security may support recovery, but it does not guarantee repayment or the value a property realises on sale.
What can go wrong
- Interest or principal payments arrive late, or not at all
- The borrower defaults and formal recovery action begins
- Recovery costs reduce what is ultimately returned to lenders
- The property realises less than expected, leaving a shortfall
- Capital loss, partial or total, is a genuine possibility
What property security actually does
Registered security over property creates an enforceable claim over an identified asset, with a ranking relative to other creditors. In a default, that position is what a recovery process works from. It is a position, not a guarantee: it does not fix the property's value, control how long a sale takes, or ensure the proceeds cover the debt and costs.
Loan-to-value ratio, plainly
Loan-to-value ratio (LVR) is the loan amount as a percentage of the assessed value of the property securing it. A loan of $300,000 against a property assessed at $1,000,000 is an LVR of 30 per cent. The gap between the debt and the value is the buffer available to absorb both a fall in value and the costs of recovery, and property values change, sometimes quickly. Where other debt ranks ahead, the relevant measure is the combined position.
More detail: LVR explained and first-ranking security.
Your decision, opportunity by opportunity
LendCap assesses opportunities before presenting them, but no assessment transfers the risk. Each lender makes their own decision on each opportunity, using the formal offer information in the secure environment rather than a public summary. If an opportunity is not right for you, you do not participate in it.
Returns
Returns are specific to each opportunity, vary between them, and are never guaranteed. Payments are subject to tax, applicable fees, and default and collection risk. No figure on this site should be read as a promised or typical return.
Before you decide
Read the current Peer-to-Peer Lending Service Disclosure Statement (March 2026) and the current lender agreement on the Fees & Disclosures page, and consider taking your own financial, tax and legal advice.
Last reviewed: 7 September 2026