OLC BuyBack Guarantee

The BuyBack Guarantee is simple: If a loan defaults, and does not repair we will buy it back from you at its current par value.

How does it work?

Orchard Lending Club follows very strict credit assessment procedures, having been lending as a group in this space for over 12 years. However as with any lending, your capital is at risk and we have this guarantee in place to lower the risk for our lenders.

We class a loan as going into default if two consecutive repayments are missed, soon as this happens our team gets in touch with the borrower to identify the cause and work out a resolution. We would notify you as soon as the loan goes into default, and you would have the option to call upon the BuyBack guarantee.

Who backs the Guarantee?

The BuyBack Guarantee is backed by our parent company Orchard Funding Group PLC, a public company listed on the London Stock Exchange (AIM: ORCH). We are the first peer-to-peer lending platform that offers a BuyBack guarantee, backed by a LSE listed company. We want our lenders to feel comfortable that we will be able to back our guarantee, should the need arise.


Orchard Funding Group PLC

How is this different from a Provision Fund?

Provision funds on other Peer-to-peer lending platforms typically deduct a portion of the interest due, to build up a kitty. This deduction is typically based on the expected loss rate plus a margin, and is used to pay out on bad loans. This means that lenders only see that portion of their money in case of defaults, if the loans perform as expected the platform keeps the money. We believe our BuyBack guarantee offers a fairer alternative to lenders, to lower the risk of lending.

Will you always offer the BuyBack Guarantee?

No, although our current products are covered by the BuyBack Guarantee we may release new products in the future that are not. Should we stop offering the BuyBack Guarantee in the future, we will ensure this is clarified to our lenders. For all previous loans made under the BuyBack guarantee, we will honor the commitment.