What you should know before investing

All investments carry a risk of capital losses

Investing via a lending marketplace, like the one operated by Growth Street, carries an element of risk. The returns you earn will come from loans made to growing businesses, and as with any investment, there is a risk that the value of your investment can go down as well as up.

At Growth Street we facilitate responsible lending, and so we ask you to consider the following before investing:
Loss of Capital

Lending to businesses can lead to a loss of your capital and there is a risk that the companies you lend to may default. You should not lend more money than you can afford to lose. If you are unsure about any aspect of the information provided, you should seek advice from an independent financial adviser.


Any lending you carry out through Growth Street Exchange Ltd may be highly illiquid. There is currently no active secondary market for the loans you take part in. This means that you will only be able to withdraw amounts invested when a loan that you make is repaid. All Growth Street loans are 30 day loans and because borrowers are free to repay loans at any time, in many cases loans may be repaid before the end of the 30 day period. However there is no guarantee that a borrower will always be able to repay the loan when it falls due.


Lending to businesses should be done as part of a diversified portfolio. This means that you should invest small amounts in multiple asset classes as opposed to a large amount in one or a few. You should also invest only a small proportion of your investable capital in this asset class, with the majority of your investable capital invested in safer, more liquid assets.


You are responsible for the administering of your own tax affairs, which may include capital gains and/or income tax. Each time you lend, you must satisfy yourself prior to making any commitment that you understand and accept the tax consequences. We do not provide tax advice and you should seek this independently before lending if you are unsure of your position. It is your responsibility to ensure that your tax return is correct and is filed by the deadline and any tax owing is paid on time. If you are unsure how this investment will affect your tax status you should seek professional advice before you lend.

Tax treatment is dependent on the individual circumstances of each client and may be subject to change in the future.

Financial Services Compensation Scheme

Lending through Growth Street Exchange Ltd is not covered by the Financial Services Compensation Scheme.


Growth Street Exchange Ltd does not give investment advice or provide analysis or recommendations regarding investment opportunities. Investments can only be made by members of Growth Street Exchange Ltd. Growth Street Exchange Ltd takes no responsibility for any recommendations, opinions or predictions.

Past Performance

Past performance is not a reliable indicator of future results. You should not rely on any past performance as a guarantee of future investment performance.

Future Performance

Forward-looking statement are not guarantees of future results or performance and many different factors could cause actual results to be different from those that may be expressed or implied by such forward-looking statements. As such, forecasts are not a reliable indicator of future performance.

Client Classification

Before being allowed to lend, you will need to be classified as an investor type. You will need to provide the relevant information to us, which you warrant to be truthful and accurate, in order that we can classify you. Please follow the steps when signing up to complete this process. If you no longer fall into at least one of the categories of investor available, you will give immediate written notice to Growth Street Exchange Ltd and you will not access, or try to access the service unless and until you fall into one or more of these categories again.


The information and services provided on the Site are not provided to, and may not be used by, any person or entity in any jurisdiction where the provision or use thereof would be contrary to applicable laws, rules or regulations of any governmental authority or where Growth Street Exchange Ltd is not authorised to provide such information or services. Some products and services described in the Site may not be available in all jurisdictions or to all clients.

This list of risk factors does not necessarily outline all possible risks involved. Prospective lenders should read the Growth Street investor terms in their entirety and consult with their own advisers before deciding whether to lend. If you are unsure about any aspect of the information provided by the company, you should seek advice from an independent financial adviser.

Frequently asked questions

  • How are borrowers assessed for creditworthiness?

    Each borrower is a UK small business, and before taking any loans must undergo Growth Street's advanced credit underwriting process. This includes reviewing financial history and management account data, conducting checks of the company's directors and controlling parties, and putting in place appropriate securities, such as a debenture or other charge over assets.

  • What happens if a borrower defaults on a loan?

    In the event of a borrower default, when there is enough money in the Default Shield provision, that money will be used to repay the principal and interest you are owed for the loan. You can then reinvest that money or withdraw it, as if you had been repaid as normal.

    We keep a close eye on the amount of money available in the Default Shield provision, but do not guarantee that it will always cover defaults. In the event that there is insufficient money available in provision, you may lose some or all of your money, and/ it may take longer to receive any money back.

  • How can I access my money if I need it before the loan is repaid?

    Growth Street has a fully funded plan to continue the operation of existing loans even if the exchange no longer issues new ones. In the unlikely event of Growth Street ceasing operations, your loans will continue to be administered until they are repaid. Loans made via Growth Street are not entitled to protection under the Financial Services Compensation Scheme.

Default Shield™ Protection

Every loan created on the Growth Street marketplace benefits from the Default Shield, our provision against losses due to borrower defaults. Like any investment, your capital is at risk, but the Default Shield has been designed to significantly reduce lenders' exposure to potential losses. A portion of all interest paid by borrowers is collected and set aside, and this amount is further topped up by Growth Street and our investors. We actively manage the risk for each of our borrowers through an advanced credit review system that takes advantage of deep data integrations, which allows us to greatly reduce the risk of a loss due to a default.

Learn more about the Default Shield

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