Lending Works’ platform will continue to be closed for new customers, secondary market sales and new loans for another 90 days after it announced an extension of its normalisation period.
It means the peer-to-peer consumer lender will have effectively been closed for nine months of the year.
On 6 April, Lending Works stopped all new retail investor signups, all investments from new or existing customers, and all new loan issuances for at least 90 days after entering a normalisation period amid the pandemic. The normalisation period was then extended for another 90 days from 1 July.
Investors were this morning (1 October) told that it would be extended for another three months as the platform awaits data on the performance of its loans during the third quarter of 2020.
Under the normalisation period, Lending Works has also suspended the use of its secondary market, and will temporarily divert all of its investors’ interest payments into Lending Works Shield, its provision fund.
“We are very keen that the normalisation period and the corresponding restrictions on investments end as soon as possible,” Lending Works said in a note to investors.
“Unfortunately, due to the ongoing uncertainty in the economy and the importance of quarter three performance to understanding the impact of Covid-19 on our loan portfolio we have decided to extend the normalisation period for three months.”
Lending Works said it will provide an update on its portfolio performance before the end of this month.
The P2P lender said that funding from its sale to Intriva Capital, announced in July, will come through within the next 60 days which will help the business return to normal.
Lending Works has sold 100 per cent of its equity to the fund manager which focuses on special situations and distressed investment strategies across Western Europe, with founder Nick Harding (pictured) remaining in charge.