Offices and high street shops are reopening in the coming weeks but a number of peer-to-peer lenders look set to remain shut to retail investors amid the coronavirus pandemic.
The majority of P2P lenders are still open to retail investors, however, some are still implementing emergency measures that they introduced as early as March in some cases.
This is despite the government deciding this week whether the UK can move onto phase two of easing lockdown restrictions, which includes reopening schools and non-essential retail such as clothes shops.
Growth Street initiated a 90-day liquidity event in March that blocks new investors, stops withdrawals and automatically reinvests funds.
This will last until 13 June, after which Growth Street will have to return to normal or move to a phase that prioritises repaying investors.
Similarly, Lending Works paused all new lending and stopped new user registrations for 90 days on 6 April, which will run into July.
Octopus Choice also stopped withdrawals and new lending in March and a spokesperson said there is no timetable to resume but the situation is being monitored.
Two of the UK’s largest P2P lenders are also closed to new investors for different reasons.
RateSetter is temporarily closed to new investors as an interest rate reduction beds in, while Funding Circle has paused retail investment as it focuses on being an accredited lender under the coronavirus business interruption loans scheme (CBILS).
However, this shouldn’t deter new P2P investors.
There are plenty of P2P lenders that are still open to retail investors such as Zopa, Assetz Capital, CrowdProperty and Folk2Folk.