Marketlend Academy: The Value of Insured Loans

Insured loans can bring real peace of mind to investors because insuring a loan brings protection in the face of often unforseen events that prevent the repayment of that loan.  How do insured loans work?  First, insured loans need a pioneering platform to realise their potential, one that is built on best practice, transparency and flexibility.

Marketlend’s proven first-of-its-kind borrower and loan risk assessment systems are supported by carefully structured insurance (in certain circumstances) and loss protection policies.

What does insurance cover?

• Payment on insolvency
• Repayment of Principal Advanced.
• Collection Costs
• Legal Costs

You can learn more about the model here, and we will also be developing more insured loan material for Marketlend Academy in the days ahead.  But we want to share a recent experience that drives home the value of insured loans.  The experience is best recounted in the words of our founder and CEO, Leo Tyndall, in the following excerpted from a message to investors.  His communication underscores how Marketlend’s robust model supports both investor interests and the health and vibrancy of SMEs.

“I think it is important to share the following with you as a member of our community of investors.  In further confirmation of the strength of Marketlend’s unique model, all investors involved in a recent liquidation have now been repaid their principal as a result of the successful approval of the claim on the trade credit insurer.  This positive outcome shows how trade credit insurance gives investors a proven safety net.  It also shows the value of the innovative structures we have in place that make our pioneering platform robust, transparent and investor-friendly.

This outcome also underscores a critical aspect of all business lending that no investor should ever overlook: no matter how you may scrutinise the financials of an entity, ultimately the unforeseen can undermine an investment despite how seemingly sound it is.  

Adding the additional layer of trade credit insurance not only supplies the safety net that worked so well in this instance, but also provides another independent level of scrutiny since the insurer itself is also involved in assessing the financial strength of the company.

Thank you.”

— Leo Tyndal, CEO and Founder, Marketlend