Quanta Loans has repaid Crowdstacker investors over £1m in interest and over £5.6m in capital repayments since launching on the peer-to-peer lending platform five years ago.
Property group Quanta raises finance through Crowdstacker and has purchased 257 UK residential properties worth over £34m since 2015. Each time Quanta sells a property, it reuses the funds to purchase new properties.
Crowdstacker spoke to Quanta chief executive Robby Du Toit about the company’s approach during the pandemic and the effect of lockdown on the property market.
Du Toit said that Quanta took a conservative approach, having halted all new purchases between April and June.
“Since resuming purchases in June 2020 we have seen a stronger than expected movement within the residential sector and new purchases are now close to pre-lockdown levels, although overall we do expect fewer purchases to be completed compared to 2019,” Du Toit added.
“Sales have also resumed to pre-lockdown levels which is a very positive sign of the property market bouncing back.”
Quanta provides regular updates to investors, via the Crowdstacker dashboard, about the properties it has purchased and sold along with details of the properties.
Crowdstacker lenders can hold their Quanta investments in an Innovative Finance ISA wrapper and can choose from two interest rates: 5.75 per cent per annum for an 18-month term or 6.8 per cent for a three-year term.
In June, Crowdstacker said it was considering adapting its products and lending strategy as it monitors the impact of Covid-19 on the platform and the economy.
As it focuses on existing relationships the platform suspended its plans for an auto-switching savings product.
Crowdstacker chief executive Karteek Patel said reducing headcount and brining more services in-house helped cut the platform’s losses in its annual accounts for the year to 31 March 2020 to £256,940 from £419,089 the previous year.