Investors in funding circle face a four-month wait to take money out of the platform
Peer to peer lending can be challenging at times and given the current uncertainty in the UK market and the young age of the p2p industry there is a lack of liquidity in the market for many platforms. This is one of the reasons blamed for the length of times investors in Funding Circle have to wait to withdraw their savings from the business.
Funding Circle was one of the early adopters in the peer to peer market however since their stock flotation in 2018 the shares have slumped by more than 80%. This slump has led to the company falling out of the FTSE 250.
Whilst this isn’t directly linked to the loans the investors take on there has been a correlation between the fall in the stock price and the length of the withdrawal times on the platform.
The management team at the p2p lender have stated they are exploring a range of options to try and are trying to work out how to get the best possible outcome for their investors.
The issue on the p2p platform is through the secondary market. This allows investors to sell the debt to other investors. The drop in the demand is the key issue for the platform. Unfortunately, there are few ways that funding circle can mitigate this.
Find advice on how to deal with the latest developments in the p2p market
Given that peer to peer lending is a fairly new industry staying up to date with the correct information is crucial. With that in mind feel free to get in touch if you have any questions on your current p2p portfolio or are unsure about how to get into the market.
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