Connective Lending repays lenders after regulation-fuelled P2P exit
Connective Lending managing director Daniel Grimes has said the peer-to-peer pawnbroking platform has repaid all lender capital and interest after leaving the sector due to regulation making the business “uneconomical”.
Last month, the platform announced it was winding down after reviewing the viability of the P2P lending platform in the pawnbroking sector, one year since launching into the sector.
Grimes told Peer2Peer Finance News that complying with regulation has made the platform uneconomical in the P2P space.
He said that all of the loans have been refinanced and the platform has repaid lenders all of their capital and interest back to their accounts pending withdrawal.
Connective Lending is in the process of removing its authorisations to act as a P2P platform and going forward will continue to operate but with private funding, Grimes added.
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“Ultimately compliance with regulation, now and in the future, made the platform uneconomical in the P2P sphere so we made the decision to take it private and will continue with private funding,” he said.
“We have received interest from several investors based on the professional way we treated our obligations in making sure no one lost any capital or interest.”