20th January 2021
With the immediate impact of the lockdown slowly coming to a close, the majority of businesses are re-opening and almost all of our existing clients who had difficulties, owing to the pandemic, are making repayments. This gives us a perfect opportunity to start working on a recovery drive project as we now have the full capacity to do so.
Doing a recovery drive will enable us to maximise the recovery of pre-COVID-19 defaulting loans before they become written-off. It is imperative that we help to get them out of default and back on track.
We have commenced an enhanced analysis of defaulting loans over the past few years and we are seeking to further the recovery of these loans now that business and director circumstances may have changed. These circumstances may have changed due to additional emergency credit now available within the marketplace and also pivoted business strategies where trading may now be more successful.
We are planning to bring on additional legal support to achieve this to take an intelligent and strategic approach for all businesses in a fair and balanced way. This will, of course, all be done in line with our regulatory obligations, and any ethics will be carefully considered when approaching legacy defaulting loans. We will be looking to offer emergency restructuring packages for businesses we believe can recover.
Having carefully analysed all of our loans, many insights have been gathered which will feed into our revised credit and loan management policy. This will ensure that after we relaunch the platform, we can maximise your earnings. We’ve had significantly fewer defaults than normal during this period.
This approach coupled with our new loan monitoring process, should mean better returns and a higher recovery rate in the future. Currently, interest earnings still continue to be significantly higher than losses across the platform. When lending to smaller, innovative businesses, there are unfortunately some losses. However, our platform due diligence has been exceptional and has ensured investors still continue to earn decent returns, tax-free. In most cases, investors have built well-diversified portfolios which also helps reduce the risk of individual investor losses.
If you have any questions about any of the loan defaults on the platform then please do not hesitate to contact us.
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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.