LendInvest has told investors that it is well placed to adapt to further lockdowns, after updating its processes, risk mitigation and financial metrics during the March 2020 lockdown.
The online lender faced challenges during the first lockdown when construction and most property viewings had to stop.
However, during the current lockdown, property viewings can continue and home moves are able to go ahead.
Jono Gomez, treasurer at LendInvest, said that as things settled in the first lockdown and the lender learned more about the virus, construction sites opened back up, valuers were able to do socially distanced visits, and third-party providers were eventually able to operate remotely.
He said that the platform spent this time reviewing its processes, building in greater buffers, and altering its financial risk metrics to maintain higher limits and plan for the worst in future.
Gomez said that LendInvest adapted and held more funds on hand in case its funders had their own issues and requested approval for alternative valuation methods with its funders.
“None were required, and none have been utilised, but should something of the scale of the March lockdown happen again, we are better placed to pivot more nimbly to keep supporting our customers,” Gomez said in a blog on LendInvest’s website.
Gomez said the lender was able to continue operating throughout the crisis with a full pipeline of valued loans to progress which helped it weather the storm.
Read more: LendInvest updates its buy-to-let range
“March was a month riddled with uncertainty, and the team’s quick reaction to the scenario and the work carried out to put both internal and external stakeholders at ease is easily the success story of 2020,” Gomez said in the blog.
“Resiliency planning, scenario analysis, credit risk and liquidity management pivoting, were done with incredible rigour, diligence and speed, to give executive committee and the board confidence that the business could weather the storm.”