Kuflink investors worry the platform has lost its USP
INVESTORS have expressed concern that peer-to-peer lender Kuflink has lost its unique selling point after ditching its policy of investing 20 per cent in all loans on the platform on a first-loss basis.
The P2P property platform announced last week that it has introduced a first loss guarantee in the form of a provision fund that it will populate with its own funds.
Previously, the company made 80 per cent of each loan available to investors and invested the remaining 20 per cent itself on a first-loss basis.
Some investors have expressed concern that a provision fund can be discretionary and have complained on the P2P Independent Forum that the platform was attractive as it had skin in the game, with some considering withdrawing funds as a result.
Read more: Kuflink signs sponsorship deal with Ebbsfleet United Football Club
But the lender insists most users are happy with the change.
“So far there has been a vocal minority who have reservations about the changes to the platform, however the direct feedback we have seen from Kuflink’s investor base is very encouraging, with new investment opportunities rapidly reaching 100 per cent funding,” Narinder Khattoare, chief executive of Kuflink, told Peer2Peer Finance News.
Kuflink was launched in 2016 and provides buy-to-let, development and bridging loans.
Read more: Kuflink gains FCA approval