Peer to Peer Lending – Growth Street

More news (July 2020) from the P2P lending sector as Growth Street, a facilitator of loans up to £1m to UK SME’s describe themselves as being in a ‘Resolution Event’ at the conclusion of which it will ‘aim to cease business activities and wind down its operations’

I guess the statement is open to interpretation, and those SME’s currently borrowing from Growth Street (their statistics page suggests 86 current borrowers with an average funds in use just under £150k, suggesting an overall book size of just under £13m) will need to seek funds elsewhere. Of course right now that will present some borrowers a real headache.

The statistics page indicates an expected default rate of 5.04%, so those investors who lent funds across the platform may anticipate some erosion of their capital.

It really reiterates what has been said before, both here and elsewhere, and I suspect will be said again. Peer to Peer business lending is a high risk strategy, be careful.

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