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Growth Street Lenders Get Full Return Of All Money And Interest
Today, Growth Street said:
“We have recently concluded redemption of our platform investors in full as part of the Resolution Event declared in June 2020. As of 13th January 2021, all remaining funds have been returned to peer-to-peer investors and our investor platform is in the process of closing.
Well done to the Growth Street time for the rapid and successful wind down of the P2P loans! I'm sure your lenders are grateful for any sacrifices you made to return their portion of the investment so quickly and in full.
Growth Street continues an excellent record for closed P2P lending sites
It's inevitable that P2P lending companies will sometimes close, especially as many of these businesses are still new and searching for profitability.
However, so far, the vast majority of P2P lending companies that have closed down have each successfully wound up their operations with an overall profit to lenders. When a P2P lending company winds down, no new loans are made, but existing loans are still chased and repaid to lenders.
Lenders who have concentrated their funds entirely through P2P lending companies that are highly transparent – i.e. companies that provide enough information to assess the risks on an ongoing basis – have received an overall profit in every one of the P2P lending companies that wound down and closed.
As far as we know at 4thWay, the opaque (non-transparent) P2P lending companies that closed in disgrace – meaning with probable losses for many or most lenders – did so because they simply offered poor investments and didn't handle bad debts well. It was not the wind down process itself that went wrong. So the moral is to stick to P2P lending companies that enable you to truly see the quality of its loans, as well as the speed and manner in which they recognise and handle bad debts.
In most cases, the costs a P2P lending platform has to pay to wind down an existing loan book is far lower than the operating costs of a P2P lending company that is still advertising, marketing, searching for borrowers, assessing borrowers and so on. P2P companies must also have fully funded wind-down plans to make the process smoother.
It was breaking news from a reader
It was a 4thWay reader who first kindly informed us of the latest breaking news from Growth Street on 11th January 2021. Here's his full email to us:[orangebox]
I have been an investor with Growth Street until they declared a resolution event in June '20. My original decision to invest was helped by the 4thWay analysis – for which I thank you.
You will be interested to hear that Growth Street's recovery process, on behalf of investors, is now concluded with the final 100% repayment of principal and interest to be made shortly. I received a letter from CEO Kim Goetzke this morning, from which I quote:
‘I am pleased to announce that we will be making our final distribution to investors on Wednesday 13th January. This distribution will see investors reach 100% recovery against the amount of their investment that was assigned to Growth Street Provision (GSP) as part of the Resolution Event (declared on 15 June 2020).'”
I feel it pertinent to add that Growth Street has acted with absolute propriety, professionalism and courtesy throughout this entire sad process.
In closing, might I also thank you and the 4thWay team for also consistently providing such excellent P-P advice?[/orangebox]