Rate Setter P2P Review

  • Loan Types: P2P Lending
  • Availability: UK (Established Businesses Only)
  • Securities: Unsecured
  • Loan amount: £25,000 – £150,000 (Personal Loans from £500)
  • Interest: Representative APR: 7.9% to 9.9%
  • Overall Rating: OK 3.2 / 5.0

About RateSetter

Ratesetter has been a trusted UK P2P Lender since 2010. Their process is transparent, and the company goes so far as to provide a “Provision Fund” by which investors are insured against borrower default. At the time of this writing, the company has nearly ¾ of a million users.

Icon of SMB Oriented

Competitive rate

Ratesetter is highly selective, and thus accepted business enjoy competitive rates, superior to many companies.

Icon of Quick Approval

Quick Approval

Money in a bank account in 24 hours from the time application is completed.

Icon of Credibility


Trusted by the British Business Bank which lends money through the platform

The Good and the Bad


  • Quality Control. Ratesetter accepts only between 10 and 15% of potential investors, making sure that each is uniquely qualified for the program. The Provision Fund provides security for investors, and lends to the company’s overall credibility.
  • Fast and Efficient Service. Borrowers frequently find funds supplied in less than 24 hours.
  • Competitive Rates. Though not the best rates available in lending, Ratesetter’s APRs are lower than some competitors.
  • Quick Approval


Pricing is good but not as good as you can potentially get with companies like Funding Circle.

Which Type of Companies do They Apply to?

Ratesetter’s requirements for potential borrowers are very general, and are as follows:

  • must be 21+ years of age, and a legal resident of the UK for 3+ years
  • most possess a UK bank or building society account
  • must have a good credit history
  • must have a reliable source of income

UK Businesses have operated in the UK for 2 years or more, as well as other details.

Are Bad Credit Businesses Accepted?

Yes and no. Ratesetter does not publish specific criteria by which it approves or disapproves potential customers, at least based on credit history. Similarly, it only lists specific APR numbers for qualifying customers with good or exce|lent credit, hinting at the possibility that the deal for poor credit individuals is not-so-good or unavailable.

Early Repayments & Comparison

There are no fees or penalties for early repayment.

How do they compare with other companies in the industry:

Ratesetter compares quite well to competitor companies. Their advertised rates (at least what they make available) are somewhat lower than is usually found. Their Provision Fund, by which investors are insured against default, is somewhat unique in the P2P model.

Reputation & Feedback

Ratesetter’s credibility is very high among P2P lenders. TrustPilot records their composite customer review score at 9.8 out of 10. Ratesetter is regulated by the FCA and is on track to complete the FCA580s full regulation process by mid-2016.


Ratesetter’s Provision Fund was the first insurance fund of its kind. Investors pay a small fee that feeds into a fund, which is used to pay back an investor in the event that a borrower defaults. Ratesetter is choosey about it’s investors, accepting less than 20% of applicants.

Ratesetter’s growth and planned expansion have been followed by many major news sources.

Growing company with a unique asset – provision fund & strict acceptance of business – a great choice for established business wanting to deal with a fair company.

Bottom Line

Ratesetter is among the most trustworthy P2P lenders. At every level of their business they go out of their way to make sure that the lending/borrowing process is clearly understood. Though they do not publish all rates, once quoted, the proposed rates and fees are invariable, transparent, and affordable. This is an excellent choice for borrowers and investors alike, and will be soon available in new emerging markets.