Compare P2P lending accounts and IFISAs now

LendingCrowd Update On COVID-19 16th April 2020

Click "Learn" to get help

By on 16 April, 2020 | Read more by this author

By LendingCrowd.

As the coronavirus (COVID-19) outbreak continues to affect all our lives, we want to assure our valued community of borrowers and lenders that we’re doing everything we can support you all at this difficult time.

We’ve reached out to every LendingCrowd borrower and asked them to complete a questionnaire to let us know how resilient their business was to the likely impact of Covid-19, and what we could do to help.

More than 50% of our borrowers have completed the questionnaire – we are grateful to them for taking the time to do so during this difficult situation. Even if they are trading normally or in a sector relatively unaffected we’ve still asked them to let us know.

One of the key requests we received was for a repayment holiday. This is not something we have previously offered, but we now have a process in place to offer a three-month repayment holiday.

To provide this, we have asked borrowers to supply us with up-to-date financial information that shows the trading profile of their business before and after the current restrictions took effect.

All requests will be assessed by our Credit team on a case-by-case basis.

What this means for lenders

For those businesses that have a repayment holiday approved, lenders will see a change to the borrower’s repayment schedule. This will show the next repayment being three months later than the original schedule repayment was due to happen. Interest will be accrued during this holiday. Lenders can check their LendingCrowd account at any time to see the status of individual loans.

We, and our borrowers, are grateful for the support our lenders have given to small and medium-sized businesses, which are the backbone of the British economy. By enabling borrowers to have a brief break from their loan repayments, our aim is to help them emerge from the Covid-19 outbreak in as strong a financial position as possible.

Everything we do at LendingCrowd is driven by the will to do the right thing for our lenders and borrowers.

For lenders with Growth or Income accounts, we have switched off the auto-invest feature. This means that repayments will not be automatically reinvested but sit in accounts as a cash reserve, giving lenders more time to evaluate how they want to proceed with their portfolios.

Sources of information

This situation is evolving rapidly, and the UK Government has set out a range of measures aimed at supporting businesses through the outbreak. You can find out more at: https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses

One of the key measures is the Coronavirus Business Interruption Loan Scheme, which can provide loans of up to £5 million for smaller businesses across the UK. The loans will be interest free for the first 12 months. Find out more at: https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils/

The Federation of Small Businesses is also a valuable source of information: https://www.fsb.org.uk/campaign/covid19.html

We will continue to communicate directly with our borrowers and lenders as this situation evolves. Updates will also be provided on this blog. If you have any questions, please email contactus@lendingcrowd.com or call 0345 564 1600.

The entire LendingCrowd team is working tirelessly to deliver the best possible outcomes for all. Thank you for your continued support.

Read the main COVID-19 updates article: P2P Lending And COVID-19: News And Updates.

And: How COVID-19 Shows That P2P Lending Is A Fairer Investment.

Visit LendingCrowd.*

Comments are closed.

Today’s average interest rates

What is the “4thWay”?

There's the savings way, the property way, the stock-market way, and now there's the peer-to-peer lending way. The 4thWay® to save and invest.
Learn more.

What does 4thWay do?

We help people save and make more money, more safely when they cut out the banks and lend directly to other people and to businesses.

Why use 4thWay?

4thWay® is shaped by investors, bank risk modellers and a senior debt specialist, and we're governed by our users to ensure our comparison services and research are trustworthy and complete.

Why are Wellesley’s interest rates different?

Wellesley’s P2P lending rates appear higher on its own website than on 4thWay®.

This is because we calculate Wellesley’s interest rates the same way most other P2P lending websites do. We do this so that you can compare the rates more easily and so that they show a more accurate picture of what you’ll earn.

Important information before you visit Wellesley & Co.

Wellesley & Co. is primarily a P2P lending website.

But, when you visit the Wellesley website, you’ll see that it also offers “bonds”. Unlike its P2P lending service, its bonds don’t allow you to lend directly to 100+ borrowers.

Instead, you lend to Wellesley and it lends to other borrowers.

We have not risk-rated either of those bonds, but we expect that their structure makes them more risky, particularly because you’re lending to just one borrower.

Got it

×

Why are Wellesley’s interest rates different?

Wellesley’s P2P lending rates appear higher on its own website than on 4thWay®.

This is because we calculate Wellesley’s interest rates the same way most other P2P lending websites do. We do this so that you can compare the rates more easily and so that they show a more accurate picture of what you’ll earn.

Important information before you visit Wellesley & Co.

Wellesley & Co. is primarily a P2P lending website.

But, when you visit the Wellesley website, you’ll see that it also offers two “bonds”, one of which is available as an ISA.

Unlike its P2P lending service, neither of these bonds allows you to lend directly to 100+ borrowers.

Instead, you lend to Wellesley and it lends to other borrowers.

We have not risk-rated either of those bonds, but we expect that their structure makes them more risky, particularly because you’re lending to just one borrower.

Got it

×

Why are Wellesley’s interest rates different?

Wellesley’s P2P lending rates appear higher on its own website than on 4thWay®.

This is because we calculate Wellesley’s interest rates the same way most other P2P lending websites do. We do this so that you can compare the rates more easily and so that they show a more accurate picture of what you’ll earn.

Important information before you visit Wellesley & Co.

Wellesley & Co. is primarily a P2P lending website.

But, when you visit the Wellesley website, you’ll see that it also offers two “bonds”, one of which is available as an ISA.

Unlike its P2P lending service, neither of these bonds allows you to lend directly to 100+ borrowers.

Instead, you lend to Wellesley and it lends to other borrowers.

We have not risk-rated either of those bonds, but we expect that their structure makes them more risky, particularly because you’re lending to just one borrower.

Got it

×

Why are Orchard’s interest rates different?

Orchard’s lending rates appear higher on its own website than on 4thWay®.

This is because we calculate Orchard’s interest rates the same way most other P2P lending websites do. We do this so that you can compare the rates more easily and so that they show a more accurate picture of what you’ll earn.

Got it

×

Why are Wellesley’s interest rates different?

Wellesley’s P2P lending rates appear higher on its own website than on 4thWay®.

This is because we calculate Wellesley’s interest rates the same way most other P2P lending websites do. We do this so that you can compare the rates more easily and so that they show a more accurate picture of what you’ll earn.

Important information before you visit Wellesley & Co.

Wellesley & Co. is primarily a P2P lending website.

But, when you visit the Wellesley website, you’ll see that it also offers “bonds”. Unlike its P2P lending service, its bonds don’t allow you to lend directly to 100+ borrowers.

Instead, you lend to Wellesley and it lends to other borrowers.

We have not risk-rated either of those bonds, but we expect that their structure makes them more risky, particularly because you’re lending to just one borrower.

Got it

×
Back to top