Funding Circle has automated the process of providing loan updates to lenders.
The peer-to-peer lending platform said it will update investors via a comment on a loan when there is a significant change to its status, for example when it becomes late, enters a payment plan or has defaulted.
The platform said it will update comments each month and loans that have changed their status in the previous month will receive an update.
“We have improved the way we provide updates on the status of a loan to investors by automating the process to make sure it is simpler and more efficient – meaning no more ad hoc updates,” Funding Circle told investors in a note on its website.
“This new process will allow the team to continue to focus on supporting impacted businesses and avoid unnecessary credit losses, protecting your returns in the process.
“At the same time, these comments will still provide you with key updates on the business you lend to.”
The platform set out the different stages of a loan that is not repaid.
These include a downgraded loan, a late loan, a pre-default payment plan, default, a post-default payment plan, litigation, personal insolvency and then settlement.
Funding Circle said it first downgrades a loan by removing the risk band if it receives a report that may affect the business or loan guarantor’s ability to repay.