FUNDINGSECURE has told investors that it focused on delivering “timely and meaningful updates on loans” as the new management team’s assessment of its loanbook comes to an end.
The peer-to-peer pawnbroker said that the senior team installed in the last quarter of 2018 has “redefined the company’s risk appetite”, boosting its internal systems and controls. This included a full assessment of over 300 loans and “a more decisive litigation and recovery approach”.
As Peer2Peer Finance News previously reported, FundingSecure’s owners sold a majority stake in the business to new director Raj Kumar. Kumar and another experienced entrepreneur, Carl Davies, were appointed to the board.
“We are fully aware of investors’ concerns on receiving timely and meaningful updates on loans and this is our priority to deliver, over the next few weeks as our assessment process comes to an end,” FundingSecure said in an email to customers.
“This process can be complex and lengthy and unfortunately until these steps are complete it can affect the frequency and timing of meaningful updates.”
Read more: FundingSecure toughens stance on defaults
A report in The Telegraph last month noted mounting defaults in FundingSecure’s loanbook, while some loan terms were being extended repeatedly.
FundingSecure also said in its monthly update that it issued 36 loans in May, totalling £2.2m, and attracted 134 new investors.
The platform has lent out more than £3m since launching.
FundingSecure said in its latest update that it has appointed “seasoned businessman” Vijay Gandhi to the management team. He joins the board with over 16 very successful years in international business and trading across India, Hong Kong and the UK. “He brings a deep understanding of property, property development and short-term property lending,” FundingSecure said.