Growth Street reveals latest loanbook reductions
Growth Street’s loanbook is down to its final £50,000 on average as it approaches wind-down.
The peer-to-peer business lender announced plans to close in June and is in the process of getting its loanbook repaid.
The platform will enter a “solvent wind-down” once all its finance facilities are repaid.
Its latest loanbook data as of 4 December shows there is £50,400 on average left to repay by borrowers.
That is down from £179,451 on average when the lender first announced its plans to close in June, but its anticipated default rate has also soared since then from 5.04 per cent to 23.76 per cent.
Growth Street now has 26 borrowers left to repay their facilities.
Most of the remaining borrowers are in the business services sector, where there are 13 credit facilities left to repay, with each worth an average of £84,662.
The rest range from business and consumer products to healthcare, construction and trade.
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 decided 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.
