What happens in the event of a real estate lending platform failure? 

There are key safeguards in place to protect investors as much as possible:

1. Wind-Down Plan – FCA regulations require all lending platforms to have a structured wind-down plan. This often includes appointing a third-party firm to manage lnvestment repayments and recoveries, ensuring that borrowers continue making payments to investors.

2. Direct Loan Agreements – Investors’ contracts are directly with borrowers, meaning that even if LendCart were to fail, borrowers remain obligated to continue making repayments.

3. Client Money Protections – Any funds held by LendCart on behalf of investors (such as uninvested cash) would be stored in a segregated client account, ensuring they are not mixed with company funds and would be returned in line with FCA regulations.

4. Capital at Risk & No FSCS Protection – Since this is an investment rather than a deposit in a bank, there is no protection from the Financial Services Compensation Scheme (FSCS). Investors bear the risk of borrower defaults or losses in the loan portfolio.