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Covid-19: Which Peer-to-Peer Platforms Are Reopening?

Posted 8 days ago

Covid-19: Which Peer-to-Peer Platforms Are Reopening?
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Previously, NextFin had reported how a number of peer-to-peer lenders had introduced forbearance measures to help mitigate the financial impacts of coronavirus. From suspending secondary markets, to closing down new applications, the P2P industry has equally been affected by the lockdown. 

However, the marketplace is beginning to recover, and we are beginning to see some platforms begin to return to some sense of normality. In this piece, we explore which P2P lending platforms are starting to reopen for business

Which platforms are reopening?

Platform 

Details

Ratesetter

The platform has halved the interest rates of investors, and funnelled the proceeds into the platform’s provision fund to cover any credit losses. Ratesetter has also remained closed for new investors since May, although it hopes to reopen for new investors in the coming weeks. 

Zopa

Zopa announced it would stop lending to borrowers in higher risk bands in response to the coronavirus, as well as originating loans that would fall into its C, D and E risk bands. It has recently acquired a banking license

Growth Street

The platform was one the very first to suspend withdrawals in March and launched a 90-day liquidity event, stopping peer-to-peer investors from accessing invested funds, in an attempt to restore confidence among its investors. However, the event was unsuccessful and the platform has announced it will exit the P2P market and return funds to investors. 

Assetz Capital

Assetz Capital was among many other P2P lenders in reducing the amount of money leaving the platform, and introduced a queuing system for withdrawals. Now, the platform is looking to reopen to new retail investment, starting with its manual lending account next month. 

Octopus Choice

The platform has not changed its position since 19 March, where it stopped all transactions, including registrations for new investments and withdrawals. Octopus Choice has said it does not expect the suspension to be permanent.

Funding Circle

The platform’s secondary market has remained closed since April and is currently prioritising lending under the Coronavirus Business Interruption Loan Scheme. The platform has also increased its number of recoveries teams and agreed payment plans with borrowers. However, Funding Circle is still closed for new investors. 

JustUs

Having suspended its secondary market as the coronavirus pandemic took hold in March, JustIs is looking to reopen its secondary market in July and is still in talks to become an accredited lender for the government’s business support schemes. 

Authors: Oliver Murphy & Sacha Bright

Disclaimer

To the best of our knowledge, the information we have provided is correct at the time of publishing. Sacha Bright is not a solicitor or accountant and we recommend that you seek professional advice on any topic discussed.

Tagged: p2p sme alternative finance coronavirus



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