Proplend will not be progressing with its plan to launch a coronavirus business interruption loan scheme (CBILS) Innovative Finance ISA (IFISA), because the loans must be funded by institutional money.
Last month, the peer-to-peer property lender outlined plans for a CBILS IFISA, if approved by the British Business Bank (BBB), that would benefit small- and medium-sized enterprises (SMEs) who need cash and investors seeking income.
Brian Bartaby (pictured) founder and chief executive of Proplend, said the firm had lined up an institutional partner to supporting its CBILS lending if required.
Bartaby said that Proplend has decided not to go forward with these plans, which he attributed to two reasons.
Firstly, individual investors cannot participate in CBILS loans. Secondly, in-depth discussions with the BBB revealed that CBILS loans are more suited to unsecured SME lending, which is not the platform’s core product or expertise.
“Whilst it would have been nice to be able to come out and say that we have been approved as a CBILS lender, we have taken the decision to stick to what we know best, which is secured commercial lending,” Bartaby said.
“We don’t do unsecured lending, but there’s still opportunities from other platforms which do to deliver CBILS.”