The average amount outstanding in Growth Street’s loanbook has fallen below £100,000 as it prepares to wind down, but more loans are expected to default.
The peer-to-peer business lender announced plans to close in June and is in the process of getting its loanbook repaid, after which it said it will enter a “solvent wind-down.”
An average of just under £150,000 was still outstanding in its loanbook during July and this has fallen to £98,915 this month.
There were 86 borrowers on its books when it first made the announcement in June and this has dropped to 35.
Most borrowers are in business services where 12 firms owe an average of £99,578.
The sector with the next highest number of borrowers is construction, with five.
This is followed by consumer products and hi-tech with four each.
The expected default rate on all the remaining loans is 15.9 per cent, which is up from 6.4 per cent in October.
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.