LendingCrowd offers repayment holiday

LendingCrowd investors have been told they may receive their next repayment three months late, due to relief given to borrowers amid the pandemic.

The peer-to-peer business lender said that some borrowers have been given a three-month repayment holiday, meaning that some investors will receive their next repayment three months after the original scheduled payment.

However, interest will be accrued during this holiday and lenders can check their LendingCrowd account at any time to see the status of individual loans.

Read more: LendingCrowd alters method for calculating returns

“We, and our borrowers, are grateful for the support our lenders have given to small and medium-sized businesses, which are the backbone of the British economy,” LendingCrowd said in a blog on its website.

“By enabling borrowers to have a brief break from their loan repayments, our aim is to help them emerge from the Covid-19 outbreak in as strong a financial position as possible.

“Everything we do at LendingCrowd is driven by the will to do the right thing for our lenders and borrowers.

“As the coronavirus (Covid-19) outbreak continues to affect all our lives, we want to assure our valued community of borrowers and lenders that we’re doing everything we can support you all at this difficult time.”

Read more: LendingCrowd changes expected returns

LendingCrowd borrowers requesting a repayment holiday must supply up-to-date financial information that shows the trading profile of their business before and after the current restrictions took effect, the platform said.

All requests will be assessed by its credit team on a case-by-case basis.

For investors with ‘growth’ or ‘income’ accounts, the platform said that it has switched off the auto-invest feature.

This means that repayments will not be automatically reinvested but will sit in accounts as a cash reserve, giving investors more time to evaluate how they want to proceed with their portfolios.

Read more: UK P2P response to pandemic has shown up European rivals