Rural business lending platform Folk2Folk saw record uptake of its secondary loans in June, as the pandemic and lockdown hit the economy.
According to the lender, approximately £805,000 in secondary market loans were purchased – a record figure for the platform.
At the start of lockdown, the platform saw a rise in the number of investors wanting to exit their investments but said this very quickly dropped as its loan performance remained steady.
Folk2Folk said that in May and June the platform saw very few listings of loan investments for sale, but a sharp increase in the number of investments being bought.
Read more: Folk2Folk delivers record interest payments
“Our secondary market has seen a significant increase in buying activity in recent months,” said Roy Warren (pictured), managing director of Folk2Folk.
“In June we saw no new loans being listed for sale, but 22 purchases.
“So far this year, we’ve seen 21 selling events and 78 buying events. This level of liquidity is attractive for our investors while the buying levels are indicative of strong investor interest in our loan investments.”
At the start of the month Folk2Folk was accredited to deliver the coronavirus business interruption loan scheme to small– and medium-sized enterprises (SMEs) impacted from the coronavirus.
During the Covid-19 induced lockdown, the platform facilitated more than £17.3m in loans to SMEs.