LendingCrowd Suggests Investors Move Uninvested Funds

LendingCrowd said investors should “seriously consider” transferring their uninvested funds to interest-bearing accounts.

The peer-to-peer commercial lender is currently closed to retail investors due to its involvement in government emergency lending programs and said in an update last week that it did not have the immediate intention to reopen the loan market.

This means that investors who earn interest on pre-pandemic P2P loans cannot automatically reinvest their funds.

“Lenders with a cash balance in their LendingCrowd account should seriously consider transferring those funds to another interest-bearing account, such as a bank account, in accordance with guidelines provided by the Financial Conduct Authority,” LendingCrowd said in an article. of blogging.

“Interest paid on a LendingCrowd account and not lent does not earn interest.”

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The update indicates that LendingCrowd continuously monitors borrower performance and underlying economic conditions.

“If we identify an opportunity to reopen our lending market, we will consider it carefully and cautiously, as part of the fair treatment of our customers,” he said.

This comes as the platform released its earnings statement detailing the performance of its loan book in 2021.

The document showed that investors earned 5.7% from its growth account and 6.5% from its income account against a target rate of 4.6% and 4.2% respectively.

Its default rate ranges from 1.07% for low-risk loans to 6.08% for higher-risk investments.