Folk2Folk delivers record interest payments

Investors have received record interest payments on Folk2Folk during the 2019 financial year, the peer-to-peer lender has revealed.

The rural-focused P2P lending platform said it has delivered more than £11.3m in gross interest payments to investors, which is its biggest pay-out to date.

Of the £11.3m, around eight per cent was via its Innovative Finance ISA and most investors are reinvesting their returns.

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“We’re pleased to see investor confidence remaining strong,” Roy Warren (pictured), managing director of Folk2Folk, said.

“We have an extremely high reinvestment rate and while we have some investors, whose investments have recently redeemed, who have chosen to temporarily ‘sit out’ during the pandemic, others are adding further funds on our platform.

“Since the beginning of March, we have facilitated £12.3m of lending funded by both new investors and existing.

“We believe it is crucial for our country’s recovery to keep the economy moving, by facilitating loans and income generating investments, and we’re heartened that our investors appear to share that view.”

It comes as the lender hit profitability for the first time in its seven-year history during 2019.

Folk2Folk reported a profit of £198,000 for the financial year February 2019 to January 2020.

It also also busy lining up more institutional lenders to fund loans alongside retail users.