Expert guide · risks

Risks of peer-to-peer lending — what you must know before signing

Peer-to-peer lending is higher-yield but riskier than a bank deposit. Here are all the key risks — for both investor and borrower — and concrete ways to protect yourself.

I need a loan I invest

Short answer: what actually goes wrong

The investor’s biggest risk is not a change in interest rates but a debtor who does not pay and has nothing to recover from. An unsecured claim ranks as an ordinary claim in the debtor’s insolvency: in a debt adjustment it can shrink to a fraction or disappear entirely. A judgment won against a debtor with no assets brings no money back — it adds costs.

The borrower’s biggest risk is not a high rate but the chain of consequences that follows a delay. One missed instalment leads to a reminder, the reminder to a demand, the demand to the district court, and from there to a payment default entry that closes off borrowing, rental housing and sometimes employment for years. An original €2,000 debt can double on the way with costs.

The risk common to both sides is fraud, and it targets whichever party is in the greatest hurry. The usual form is a fee demanded before the loan is paid out. Vertaislaina24 performs no background checks and does not score the parties — the service publishes listings and the judgement about a counterparty is yours. We do not grant loans and we do not broker them.

Overview of the topic

A P2P loan is a direct financing agreement between two private individuals. Since there is no bank as intermediary, the risks fall entirely on the parties. It is important to understand that vertaislaina24.fi is only a classifieds board — we do not assess the counterparty’s creditworthiness and do not guarantee that agreements are fulfilled. Responsibility for assessing risk is always the user’s own.

The investor’s biggest risk is loss of principal. On Finnish P2P platforms 10–20% of loans end in default, and collection can take months or fail entirely. In a directly made agreement (without a platform) you don’t get automatic diversification — one insolvent borrower can wipe out the whole investment. So diversifying across many small loans is essential.

The borrower’s biggest risk is over-indebtedness and high rates. When the bank has refused, the temptation to accept unreasonable terms grows. Over 20% annual rate may count as usury, but before signing, responsibility is yours. A default on a P2P loan leads to collection and a possible new default entry.

A risk common to both parties is fraud. The most common type is the "advance-fee scam": a fake lender asks for a "collateral fee", "processing fee" or "insurance" before paying the loan — and disappears with the money. A genuine lender NEVER asks for an advance payment.

The risks in numbers and consequences

Each risk, its likelihood, its consequence and the only protection that works, parameters in columns
Risk	Affects	How common	Consequence in money	Protection that works
Credit loss	Investor	4–10 % of loans a year on platforms	Capital lost in full or in part	Diversification by count, plus collateral
Delay without insolvency	Investor	Common, affects a large share of loans	Return arrives late, late interest accrues	Recorded late-payment interest and due dates
Payment default entry	Borrower	Follows nearly every court process	Borrowing closed for 2–4 years	Contacting the creditor before the due date
Collection and court costs	Both	Whenever the process starts	Hundreds of euros for each side	A payment plan instead of litigation
Contract risk (missing or defective note)	Both	Very common in loans between friends	The claim cannot be recovered at all	A written note before money moves
Fraud	Both	Targets whoever is in a hurry	The entire transferred sum	Never pay in advance, always identify
Liquidity risk	Investor	Applies to every direct agreement	Money tied up for the whole term	Short term or an assignment clause

The table describes market practice in August 2026. Note that five of the seven risks are defeated by the same thing: a proper written agreement made before any money moves.

What the statistics say about realised risk

Finland has a standing population of roughly 350,000–400,000 people with an active payment default entry. Tens of thousands of new entries arise each year, and the most typical single cause is an unpaid consumer credit. That is the real scale of the borrower’s risk: not a theoretical possibility but a statistically common outcome in exactly the product category peer-to-peer lending belongs to.

On the investor side the figure that matters is the loss rate on the loan book. In platform reports annual credit losses have typically moved between four and ten per cent of the book, and the number varies sharply by year of origination. The rate rise of 2022–2024 increased household payment difficulties broadly, which showed up in the results of everyone financing consumer credit. One year’s loss level therefore does not predict the next.

A third phenomenon often goes unnoticed: operator risk. Several Finnish and Baltic peer-to-peer platforms have over the years stopped new lending, moved under a licence or run into payment difficulties. For an investor that means the fate of a portfolio depends on the intermediary’s viability as well as on the debtors’ ability to pay. A direct agreement removes that risk but replaces it with another — collection becomes entirely your own responsibility, as described on invest in P2P lending.

Source: Suomen Asiakastieto Oy payment default statistics, public return reports from Finnish P2P platforms and Financial Supervisory Authority releases; data checked in August 2026.

How the risk actually shrinks

Risk cannot be removed, but each of these six steps shifts the odds measurably. They are ordered by value: the first delivers the most for the least effort.

1
Always write a promissory note, even for a friend

This single act removes most disputes. Without a written agreement the existence of the claim, its amount and its interest are all contestable. The clauses are set out on loan agreement terms.
2
Identify the counterparty from a document

Name and identity code from an official identity document, not from a message. If the counterparty refuses, the negotiation ends there — without identification the agreement cannot be enforced.
3
Require collateral or a guarantor for larger sums

Collateral is the only thing that changes an investor’s position in insolvency. An unsecured loan above €5,000 to a stranger is in practice a gift if the debtor enters debt adjustment.
4
Record late-payment interest and due dates as calendar dates

Late interest cannot run if nothing has fallen due. Without due dates the creditor cannot show a delay, and without a delay there is no basis for collection.
5
Pay and receive only by bank transfer

The same reference in every payment. A bank statement is the one document neither party can alter afterwards.
6
React to the first missed payment immediately

A written reminder within a week and an offer of a new schedule resolves most cases. Three months of silence turns a fixable situation into a credit loss. Background on P2P loan in Finland.

Route planner: three questions, one recommendation

Peer-to-peer lending is not a single product but a set of different routes. Answer three questions to see which route fits your situation and what to read next. The tool collects nothing and sends nothing to a server — everything runs in your browser.

Question 1.Which side of the table are you on?

I need money I have money to invest I am writing an agreement for someone I know

Question 2.What size of sum are we talking about?

Under €2,000 €2,000–15,000 Over €15,000

Question 3.How does the credit record look?

Clean There is a payment default Do not know / not relevant

Recommended route

Answer all three questions to see the recommendation.

Below €2,000 an arrangement fee eats the largest relative share of the loan. Write a listing that states the purpose and the repayment dates, and work out the total cost with the loan calculator before you agree on a rate. Background: how P2P lending works in Finland.

The most common P2P range. Compare the platforms’ real annual cost against your own offer first: Fellow Finance, Fixura. If you want to agree directly, write the agreement terms down before any money moves.

Above €15,000 collateral and witnesses are not a formality. Go through the contract terms clause by clause and check the risks on both sides before signing.

With a small pot, diversification is the only protection you have. Do not put everything into one listing — read how to calculate expected return and credit losses and follow the active listings before the first agreement.

At this size it is worth comparing platform investing and a direct agreement side by side: the platform handles collection, a direct agreement leaves the whole interest to you. Background: P2P mechanics and AuroraX.

With large sums, collateral and enforceability decide whether you get your money back. Read the terms, the risks, and check what a credit default actually means for the counterparty.

Even a small loan to a friend is worth putting in writing. Use a promissory note structure and add a reference in the bank transfer message field — that is the only proof when memories differ.

Write down the interest, the due dates and the consequence of late payment. Without a written interest the debt is interest-free, and without due dates late-payment interest never starts running. See the wording of each clause.

For a large promissory note, two witnesses and collateral are the practical minimum. Read the agreement terms and the risk list before signing.

A clean credit record is a negotiating asset: say plainly in the listing that there are no entries, and the other side dares to offer a lower rate. The cheapest route is still usually a bank consumer loan — put that out to tender first and use P2P only if the terms are not acceptable.

A payment default closes the bank and most platforms, because they run an automatic credit check. On a classifieds board a default does not block publishing, but honesty pays: read what options remain and how to word the listing.

If you do not know the state of your credit record, check it before applying for anything. You can obtain your own credit data free of charge once a year from the register keeper. After that you know whether to go to a bank or straight to the listings board.

Four things to have before taking the risk

These are not recommendations but thresholds. If even one is missing, the sensible decision is to leave the agreement unmade.

An identified counterparty

Name and identity code or business ID recorded in the document. Without this, collection is impossible however obvious the debt relationship is.

A written agreement before the money moves

An agreement signed after the transfer is far harder to obtain — the motivation disappears the second the money lands.

A sum you can afford to lose

Invest only what you can lose without changing your plans. In a single unsecured loan a total loss is a realistic scenario, not a theoretical one.

A calculated repayment capacity

A borrower has to know in euros what instalment fits after other expenses. Guessing is not enough — work it out with the loan calculator before committing.

When the risk materialises and payment is refused

For the creditor the order is a written reminder, a payment demand, an application to the district court and then an enforcement application. In an undisputed matter the court issues a default judgment, which is an enforcement title. The process typically takes six months to a year and the court fee is paid up front. In small claims the costs can exceed the claim itself, so the arithmetic is worth doing before starting.

For the debtor timing decides everything. Contacting the creditor before the due date almost always produces a new schedule; contacting after the summons no longer prevents an entry. If there are several debts and no repayment capacity, the right address is not a new loan but the municipal financial and debt counselling service. It is free, statutory, and its use does not appear in credit data.

Send the reminder in writing and keep it — it also interrupts the three-year limitation period.
Check the late-payment clause in the note; without one the Interest Act 633/1982 default applies, being the reference rate plus 7 percentage points.
Consider a payment plan before litigation: a partial payment beats a judgment against someone with no assets.
As a debtor, make contact before the due date rather than after. A schedule agreed before the debt falls due causes no default entry.
If the counterparty disappeared or refused to identify themselves, report it to the police — that is not a credit loss but possible fraud. See what a default entry means in practice.

Risks and benefits against each other

Advantages: what this route gives you

+The risks are identifiable and most of them are defeated by one document.
+Collateral or a guarantor changes the position substantially for both sides.
+A direct agreement allows flexibility to be agreed before a problem arises.
+Diversification reduces an investor’s risk and costs nothing.

Drawbacks and limits: where it breaks down

−There is no consumer protection safety net between private individuals.
−Collection takes months and costs money up front, even when you are right.
−An unsecured claim can almost vanish in a debt adjustment.
−A payment default entry reaches housing and employment, not only borrowing.

Who this is not for

×Anyone who would borrow to repay another loan.
×An investor who cannot absorb the total loss of one loan.
×Anyone unwilling to make a written agreement.
×Anyone deciding in a hurry without reading the terms.

Investor risks vs. borrower risks

Usual solution

• Investor: loss of principal on default
• Investor: collection costs and slow process
• Investor: no deposit guarantee (unlike a bank)
• Investor: interest income tax 30/34%
• Investor: lack of diversification in direct deals

Vertaislaina24

✓ Borrower: over-indebtedness
✓ Borrower: high rates (even usury)
✓ Borrower: default entry from non-payment
✓ Borrower: collection costs on top
✓ Both: advance-fee scam

Legal framework: which act governs what

The Promissory Notes Act 622/1947 determines when a claim exists and on what terms it transfers. Its practical consequence is that a written note is fully valid without a notary — but without written form the existence of the claim, its amount and its interest are all matters the creditor has to prove.

The Interest Act 633/1982 sets late-payment interest when nothing has been agreed: the reference rate plus seven percentage points. The general limitation period for a debt is three years, interrupted by a written reminder or an acknowledgement of the debt. That is the reason to send a reminder even when you expect no payment.

There is no ceiling on the rate in a loan between private individuals, but limits arrive from two directions. Chapter 36 Section 6 of the Criminal Code 39/1889 criminalises usury, where a clearly disproportionate benefit is obtained by exploiting another’s distress, and Section 36 of the Contracts Act 228/1929 lets a court moderate an unreasonable term afterwards. Chapter 7 of the Consumer Protection Act does not apply between private individuals, but it applies at once if one party lends professionally — the Financial Supervisory Authority supervises licensed operators and maintains a warning list. This service’s own position is on legal status.

Key Finnish statutes applying to a loan between private individuals
Act	Number	What it governs	Practical consequence
Promissory Notes Act	622/1947	Form, transfer and limitation of a promissory note	A written note is valid without a notary; transfer requires notice to the debtor
Interest Act	633/1982	Late-payment interest and how the rate is set	Without a contract term, late interest is the reference rate + 7 percentage points
Consumer Protection Act	38/1978, ch. 7	Consumer credit granted by a trader	Does not cover a loan between two private individuals — but does cover anyone lending professionally
Criminal Code	39/1889, 36:6	Usury	A clearly disproportionate rate can be a criminal offence, not merely an invalid term
Contracts Act	228/1929, §36	Adjustment of an unreasonable term	A court can afterwards moderate the interest or the payment terms
Act on Registration of Certain Credit Providers	186/2023	Registration of credit providers and intermediaries	Professional lending requires registration; a classifieds board is not credit intermediation

The table is a general overview, not legal advice. In an individual case, use a lawyer or the municipal financial and debt counselling service.

Spotting a scam before the money leaves

In agreements made directly between private individuals there is no platform background check, so recognising fraud is the parties’ own responsibility. These signals repeat in almost every case we have heard about.

An advance fee before the loan. There is no situation in which receiving a loan requires a “handling fee”, “insurance fee” or “notary fee” paid up front. This is the most common loan scam in Finland.
Urgency and deadlines. “The offer is valid for one hour” is pressure, not a term. A real lender gives you time to read the agreement.
Contact only through a messenger where messages disappear. Ask for every term in writing, by email or in the agreement itself.
The counterparty refuses to give a personal identity code or business ID for the agreement. Without identification a promissory note cannot be enforced.
A request to send money to a third person’s account, in cryptocurrency or on a payment card. A lawful loan is paid by bank transfer to the named party’s account.
For investors: the applicant wants the money immediately but refuses to sign a promissory note. Without a written agreement, collection is practically impossible.

If you suspect a crime, report it to the police. Lender registration can be checked in the register kept by the Regional State Administrative Agency for Southern Finland, and the Finnish Financial Supervisory Authority maintains a warning list of operators without authorisation in Finland. More on this on risks of P2P lending.

When a risk materialises, time is the most important variable. A creditor should send a written reminder after the first missed payment and a debtor should make contact before the due date. Both actions are free and both prevent most of the expensive outcomes.

How the listings board actually works

Vertaislaina24 is not a platform that slices loans into pieces and runs the payments. It is a classifieds board: you write a listing, the other party gets in touch, and everything after that happens between the two of you. Four steps cover the whole process.

Listing

You state the amount, the term you want, your interest expectation and a short justification. The more concrete the text, the fewer pointless contacts. Prices are on the pricing page.

Contact

The other party contacts you through the service. We do not score either side and we do not recommend anyone — the judgement is yours. You can browse active listings without registering.

Agreement

Terms go into a written promissory note before any money moves. The wording of each clause is on loan agreement terms.

Payments

Money moves directly between bank accounts. The service neither receives nor forwards payments, so the transfer visible on your bank statement is itself your proof of payment.

Vertaislaina24 does not grant loans, does not broker them and takes no part in payments between the parties. We are not a credit institution and not a credit intermediary, and we charge no interest or commission on any loan. The only charge is the fee for publishing a listing.

Glossary: the words the terms are written in

The same thing often goes by three names in P2P discussions. These six terms are enough to read a draft agreement without help.

Nominal interest: The annual rate written into the agreement, excluding fees. Two loans with the same nominal rate can cost very differently if one carries an arrangement fee.
Annual percentage rate: The rate with all mandatory costs included. The comparable figure, which you can work out yourself with the loan calculator.
Annuity: A repayment method where the monthly instalment stays the same and the interest share of it shrinks over time. The most common model in private agreements too.
Late-payment interest: Interest that runs after the due date. Under the Interest Act 633/1982 it is the reference rate + 7 percentage points unless otherwise agreed.
Payment default entry: An entry in the credit information register for a neglected payment. It affects borrowing for years — see what a default actually blocks.
Collateral: Property from which the debt can be recovered if the debtor does not pay. Without collateral the creditor is an ordinary creditor among others.

Frequently asked questions

Can I lose all my investment in P2P lending? +

Yes, in theory. If the borrower does not repay and collection fails, the investor loses the principal. There is no deposit guarantee in P2P lending. This is why diversification across many small loans is essential.

How do I recognise a P2P lending scam? +

The biggest warning sign is a request for an advance payment: "collateral fee", "processing fee", "insurance" or "notary fee" before you get the loan. A genuine lender never asks for money up front. Other signs: too-good a rate, urgency, requests to move money abroad or as cryptocurrency.

What happens if the borrower does not repay? +

The investor can 1) send a written payment reminder, 2) transfer the claim to a collection agency (Intrum, Lowell), 3) apply for the district court’s summary procedure. A notarised promissory note can be enforced directly without a court case.

Is there a deposit guarantee in P2P lending? +

No. Unlike a bank deposit (with a €100,000 deposit guarantee), a P2P investment is not protected. You lose the money if the borrower does not pay and collection fails.

How do I protect myself as a borrower from unreasonable terms? +

Always compare the actual annual rate (APR). Over 20% annual rate may count as usury. Do not sign under pressure. Read the whole agreement. Use a written promissory note and keep all receipts.

Who is responsible for the risks — vertaislaina24.fi? +

Not us. Vertaislaina24 is only a classifieds board. We are not a party to the agreement, we do not assess creditworthiness and do not guarantee anything. Responsibility for assessing risk is always the user’s.

What share of peer-to-peer loans goes unpaid? +

In published platform figures annual credit losses have typically moved between 4 and 10 per cent of the loan book, varying sharply by year of origination. No statistics exist for direct agreements, but the dispersion is wider because there is no diversification: in a single loan the outcome is either full payment or a total loss.

Can collateral remove the investor’s risk entirely? +

Not entirely, but it changes the position substantially. Collateral gives priority over other creditors, yet its value can fall, realisation takes time and costs arise. It is effective specifically when it is clearly worth more than the claim and is easy to sell.

What happens if the debtor enters debt adjustment? +

An unsecured claim is treated as an ordinary claim and can shrink to a fraction or disappear at the end of the payment programme. A secured claim is in a better position within the value of the collateral. This is the practical reason why lending a large unsecured sum to a stranger is so risky.

Who carries more risk, the borrower or the investor? +

The risks are different rather than comparable. The investor risks money that can be lost in full. The borrower risks their repayment capacity and creditworthiness for years, and a default entry reaches housing and sometimes employment. In money terms the investor’s loss is capped at the investment; the borrower’s consequence is not as easily bounded.

Does any insurance cover peer-to-peer lending? +

There is no deposit guarantee and no investor compensation fund covering a credit loss between private individuals. Some platforms have marketed buyback guarantees, but a guarantee is only ever worth the solvency of whoever issues it. The only protection that works is diversification and collateral.

How do you spot fraud before the money moves? +

One rule covers most cases: if money is requested before the loan is paid out, under any label, it is fraud. The other signals are urgency, refusal to identify, and a request to send money to a third party’s account or in cryptocurrency. The service performs no background checks, so the assessment is always the parties’ own.

Act prudently — post a listing safely

Once you know the risks, you can make an informed decision. First 5 listings free for borrowers.