EasyMoney has urged all peer-to-peer lending platforms to tell their investors how long it will take to withdraw their money.
The P2P property lender said that platforms should be more transparent and publish this information as a standard to improve investors’ confidence in the P2P sector.
EasyMoney said that it has returned investors’ money in an average of 2.6 days over the past 12 months, even if the money has already been invested in a loan.
Even if a platform takes weeks or even months to return cash to investors, reporting this in a transparent manner is beneficial for investors, the platform and the industry overall, the platform said.
“P2P platforms should be clear with their investors over how long it takes to withdraw cash to increase investor confidence in our industry,” said Andrew de Candole, chief executive of EasyMoney.
“Every investor wants to make an informed choice over what they do with their money. Without key information like the wait time for a withdrawal, that’s very difficult.
“The P2P industry needs every platform to work together to raise standards. Greater transparency leads to greater trust, which will grow the market for everyone.
“We understand that not every platform will be able to report good news to their investors on waiting times. However even those who have to give investors bad news will find their investors prefer them to be transparent.”