Assetz Capital has signalled that its lender fee will be scrapped from June.
The peer-to-peer business lender introduced the temporary lender fee of 0.9 per cent per annum in May 2020, after experiencing a substantial drop in its income as a result of the pandemic.
It has been reviewed each month since then.
A note to investors sent today (26 January) said the fee will drop by 25 per cent in February, 50 per cent in March, 75 per cent in April and 100 per cent in May.
The payments are taken from interest in the following month’s payment after each drop so the full removal will take effect in June.
It will then fall by 50 per cent and come out of April’s payments.
“The lender membership fee was introduced in April last year as a result of the economic impact of coronavirus and the substantial impact on our income as a result of a pause to new lending,” the note to Assetz Capital investors said.
“This was a difficult, but necessary and prudent step that we had to take to protect the long-term health of the platform.
“As a company, we are now in a much stronger position as a result of our government-backed coronavirus business interruption loan scheme lending and we are hopeful of new lending via the access accounts in the near future.
“As a result, we’re delighted to be able to start taking steps to reduce and remove the temporary lender fee.”