Crowd2Fund says enhancements to its credit policy are “starting to show”
Crowd2Fund has said that it appears the enhancements to its credit policy are “starting to show” with no late payments from any of the loans issued in the last 12 months.
The peer-to-peer business lending platform said it has invested substantially in improved process controls and new team members to help it reduce the risk of default for investors.
Crowd2Fund said it has listed 56 deals in the last 12 months with its reinforced process across a range of sectors, such as the food industry, health, technology and construction, and on average these investors are earning an expected 13.5 per cent APR, before defaults and fees.
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“Crucially since reinforcing and reviewing our credit policy there have been no late payments from any of the loans issued in the last 12 months,” Crowd2Fund said in a blog on its website.
“Some defaults should be expected and accounted for and investors should understand that anything invested via the platform may incur losses.
“What’s important to know is that it appears the enhancements to our credit policy are starting to show with very few, if any, late repayments so far from any of these loans issued since September.
“Diversification is key and the top investors invest in every deal but change the amount they invest depending on their risk appetite.”
Crowd2Fund said one of the new tools it has implemented is its new credit risk matrix that aims to help drive consistency across the pricing but also helps provide further information to investors, based on variables which are measured during the due diligence process.
The platform said it will continue to develop its credit policy, including working to further automate the process to allow it to list more deals quickly, and inform any investors of further improvements or changes.
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“Accurate pricing of loans will be an important consideration for us to ensure that investors get a decent return and that businesses receive capital from investors quickly,” Crowd2Fund said in the blog.
“We will also continue to automate the process to allow us to list more deals quickly and ensure consistent regular returns offered by businesses.”