Funding Circle Secondary Market Update On COVID-19 9th April 2020
By Funding Circle.
Update on the
As part of our ongoing measures to protect investor returns, we have taken the decision to pause thewhile we continue to evaluate the potential impact of Covid-19.
This forms part of a number of measures introduced recently. Over the last few weeks, we have tightened our for new loans. We have also parametersstrengthened our Collections and Recoveries capabilities, to support the businesses you are already lending to with maintaining their payments over the term of the loan.
As a regulated platform, we also want to ensure that loans bought and sold by investors on theare priced fairly. This means taking into account the wider economy and how it might impact small businesses.
The businesses you have lent to are good,businesses and we expect returns to remain resilient over the coming period.
However, given the current environment we have decided to be prudent and pause all loan part sales on the. This does not affect your ability to access funds from the monthly repayments you receive from borrowers. If your lending is turned off you will typically receive 3-5% back of your outstanding portfolio every month.
Pausing themeans you will no longer be able to sell your loan parts to other investors, or purchase existing loans from other investors. If you currently have an active sale request, no further loan parts will be sold, and your loan parts will be delisted over the next week.
As we have more clarity over the coming months, we hope to be in a position to resume the.
Read the main COVID-19 updates article: P2P Lending And COVID-19: News And Updates.
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