Growth Street reduces borrowers by a fifth as loanbook wind-down continues

Growth Street has reduced the number of borrowers on its books by a fifth in one month, as the closure of its peer-to-peer lending platform edges closer.

The business lender announced in June that it would enter a “solvent wind-down” once its resolution event – the process of getting its loanbook repaid – is complete.

It had 86 borrowers still repaying loans in July and this has reduced to 68 as of 14 August.

The average amount outstanding is £121,437, down from £148,058 in July.

It is anticipating a default rate of 6.06 per cent based on the remaining loans, which is up from the 5.04 per cent predicted last month.

Growth Street entered a 90-day liquidity event earlier this year to stop withdrawals and keep funds invested.

It then decided to close to retail investors in June and focus on getting its loanbook repaid as part of a resolution event.

However, efforts to secure institutional backing have since failed so the platform has instead deciding to close once loanbook repayments are complete.

The lender had previously announced a restructure and layoffs in November 2019 which also included the departure of its founder and chief executive Greg Carter.