Funding Circle suspends secondary market
Funding Circle has paused its secondary market indefinitely, as the platform reacts to the coronavirus pandemic.
In a note to investors, the peer-to-peer business lender said that the suspension of secondary market activities is part of its ongoing measures to protect investor returns.
Any loan parts which are currently listed on the secondary market will be delisted over the next week. Investors will continue to receive monthly repayments on their outstanding loans – including those loan parts which they had been trying to sell on the secondary market.
Read more: Lending Works puts 90-day ban on lending
“The businesses you have lent to are good, creditworthy businesses and we expect returns to remain resilient over the coming period,” Funding Circle told investors.
“However, given the current environment we have decided to be prudent and pause all loan part sales on the secondary market. This does not affect your ability to access funds from the monthly repayments you receive from borrowers.
Read more: Assetz Capital investors vote overwhelmingly in favour of forbearance
“If your lending is turned off you will typically receive three to five per cent back of your outstanding portfolio every month.”
Funding Circle has already tightened its credit risk parameters for new loans and strengthened its collections and recoveries capabilities to help ensure that investor returns can be maintained during the pandemic.
The platform added that it hopes to be in a position to resume the secondary market over the coming months.
Read more: What do you do when you can’t withdraw your money from P2P platforms?