Mintos has rebranded the buyback guarantee offered by originators on its peer-to-peer lending marketplace to make it clearer for investors.
The Latvia-based European lender has renamed the commitment, offered on most loans on its platform, as a buyback obligation.
The features remain the same, with an originator obligated to repay investors if a loan is more than 60 days late.
Mintos said in a blog post that it had received feedback that the word guarantee was misleading, especially if a loan originator goes bust and cannot meet its commitments.
“At the very beginning of Mintos, we considered several names for the commitment from the lending companies to buy back loans in case of a borrower default,” the platform said.
“Eventually, the term ‘buyback guarantee’ was chosen as we considered it a widely used legal term, understandable to all involved parties.
“Over time, we’ve noticed comments and received feedback from investors saying that the word ‘guarantee’ is misleading.”
It comes after Mintos set a record for the amount raised in a crowdfunding round in continental Europe.
The platform attracted €7.2m (£6.4m) from investors on Crowdcube.
Read more: Mintos reaches €5bn of funded loans