PEER-TO-PEER business lender Huddle has stepped in to refinance some of Collateral’s loans after the platform went into administration earlier this year.
The first Collateral loan to go live on Huddle’s platform was a £80,500 facility secured by way of a first legal charge against a property.
A Huddle spokesperson told Peer2Peer Finance News that there has been a great investor response to the loan, both from existing and new customers, with around two dozen new lenders signing up after the loan went live.
The spokesperson said the platform was set to list two more Collateral loans and have paid out the first one by the start of July.
“As long as the underlying deals are solid and they’re only part of the performing loanbook then we’re happy to take on more Collateral loans,” said the spokesperson.
“These are things that P2P has already lent on and there’s a proven appetite.”
Huddle is not the only firm to express an interest in Collateral’s loanbook. P2P investment manager
BondMason, HNW Lending and Ablrate – which now owns an equity stake in Huddle – have also thrown their hats into the ring.
Collateral collapsed in February after it emerged that it had been operating without the required
Huddle is also expanding into a new type of P2P loan, where it lends to law firms secured against insurance policies. The loan is secured with a charge over a case, so will be paid out from the proceeds if they win, or by the insurance policy if they lose. Investors have the added assurance of personal guarantees from the solicitors.
This article featured in the July edition of Peer2Peer Finance News, now available to read online.