FUNDINGSECURE said it has improved communication, increased the frequency of its loan updates and launched more investor evenings, in response to customer concerns.
The peer-to-peer pawnbroker, which offers loans against assets like jewellery or cars, said it was putting more focus on defaulted loans on its platform and sought “to improve all modes of communication” for investors.
“We recognise and acknowledge that our valued investors have shown a large degree of patience and support during this period of transition we have undergone,” the company said in an email update.
The past two months “have seen considerable changes at FundingSecure,” the company said, including recruiting a specialist team of in-house lawyers, a national property recovery provider and a national insolvency practitioner.
FundingSecure noted that company directors Carl Davies, Nigel Hackett, Rajinder Kumar and a May 2019 addition to the management team, Vijay Ghandi, were also invested in loans through the platform.
“Considering the actions we have taken, we hope that you have also begun to see the difference regarding the speed and regularity of our loan updates,” FundingSecure said.
The platform also said that it will be introducing more scheduled investor evenings, to give its customers the opportunity to communicate with the team.
FundingSecure also noted that Brexit worries are “a legitimate concern amongst lenders,” as a downturn in the UK economy could leave borrowers at risk of being unable to exit projects and pay off loans, leading to an increase in defaults.
The firm said in May that it was taking a tougher stance against bad loans by targeting a default rate of zero per cent.
Investors on new loans posted to the platform between now and the end of September will receive a bonus rate of between 0.25 per cent and 1.25 per cent, the company added.
“We trust that this gesture conveys our sincere thanks to our investors and that it will reconfirm our determination to maintain investor confidence and belief in FundingSecure,” it said.
FundingSecure said across August 2019 loans on its platform had hit £3.1m, with secondary market activity equating to £3.6m.
The lender said in June that its new management team had reassessed the company loanbook in a bid to cut delays in recovering bad loans for lenders on its platform.