Business services sector dominates final Growth Street loans
Growth Street’s loanbook has been reduced to 58 outstanding facilities, an update from the platform has revealed.
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.
As of September 10, the average loan outstanding is £115,084 and the predicted default rate is 6.49 per cent.
It had 86 borrowers still repaying loans in July, which fell to 68 in August.
The average amount outstanding is down from £121,437.
Most of the loans that are left to be repaid, 23 are in the business services sector where Growth Street has an expected default rate of 10.61 per cent.
These loans represent 38.85 per cent of the whole loanbook.
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.
