8th November 2023
Matthew Anderson, a recent recruit to the Crowd2Fund team, gives us his insight into the business and his role as Head of Collections. With over 25 years in banking and finance, both originating and collecting loans, Matthew brings a great deal of experience both in monitoring the performance of the loan book and giving inciteful feedback into the credit process for new loans.
Tell us about your experience with Crowd2Fund so far:
Crowd2Fund is a unique platform in as much as it was designed by entrepreneurs for entrepreneurs – and my lending mindset has had to change to reflect this. This is very much, what is termed in the finance world, as “unsecured lending” where we look to the ongoing performance of the businesses we fund, as the source of ongoing repayment. What is great to see is that, even in these difficult times, the vast majority of the campaigns we fund, meet their contractual commitments on a monthly basis. Given what the business community has experienced in the last five years, this is a real testament not only to their core businesses but their own personal resilience.
It doesn’t always go right though, does it?
No business sets out to fail, but sometimes the economic headwinds are just too much. In these instances, we always try and work with a borrower to find a resolution, that gives them breathing space to put their business back on an even keel.
How do you approach a loan that does default?
It may well be, even with our forbearance, another creditor might not be so patient, and our borrower has no option but to seek administration or liquidation. Very often, the business owner will acknowledge their commitment under the guarantee given in support of their company and will seek some form of repayment plan. Not all will. The stress of such a situation cannot be underestimated. And this is something we need to be very wary of being a regulated entity. Some will seek resolution through an Individual Voluntary Arrangement, where they agree an arrangement with all their creditors. If that fails, bankruptcy can be an inevitable consequence.
Does Crowd2Fund use any third parties to assist with the collection process?
Where communication with a borrower fails irreparably, there will be no option but to hand the case to a debt collection agency, or in rare cases, to solicitors. The latter is only in exceptional circumstances as the cost, both financially and in time, of litigation is very expensive.
Do you have any personal philosophies around finance and lending?
There are many cliches but my favourite two, that reflect on both ends of the process are:
Better a bad day than a bad loan.
It’s not a good loan until it is repaid.
I always have these in the back of my mind when either looking at new propositions or monitoring existing loans.
Where can I find updates on loans?
We update the status of loans directly on the campaign pages.
I’d like to speak to someone about existing loans in my portfolio, who do I contact?
I am an existing business looking to settle my loan, who is the best person to speak to?
To settle your loan, please email: email@example.com
To make an arrangement on an existing loan, please email: firstname.lastname@example.org
Past performance and forecasts are not reliable indicators of future results. Your capital invested is not covered for compensation in the event of a loss by the FSCS. Tax treatment will depend on the individual circumstances and may be subject to change. Please see our Risk section before making an investment decision.