Growth Street reveals state of its loanbook as it prepares for wind-down
Growth Street is anticipating that five per cent of its remaining loanbook could be in default as it prepares to wind-down its peer-to-peer lending platform.
The business lender announced last week that it would enter a “solvent wind-down” once its resolution event – the process of getting its loanbook repaid – is complete.
The platform’s flagship product, GrowthLine, offered a flexible, overdraft-style line of credit for small- and medium-sized businesses.
Its latest loanbook data as of 20 July shows it has granted 86 finance facilities worth £179,451, and that £148,058 has been withdrawn and is still due to be repaid.
Of these, it is anticipated that 5.04 per cent will default.
Most borrowing is from the business services sector where there are 35 firms with facilities to repay, followed by 15 in construction and nine in hi-tech.
Growth Street entered a 90-day liquidity event earlier this year to stop withdrawals and keep funds invested.
It then decided to close to retail investors in June and focus on getting its loanbook repaid as part of a resolution event.
However, efforts to secure institutional backing have since failed so the platform has instead deciding to close once loanbook repayments are complete.
The lender had previously announced a restructure and layoffs in November 2019 which also included the departure of its founder and chief executive Greg Carter.