By Roger Baird on Friday 8 March 2019
Loanbook will wind down its portfolio and stop accepting fresh cash from investors, AltFi understands.
Barcelona-based Loanbook Capital will begin to runoff its loanbook, thinning its portfolio as existing loans are paid off without taking on new lending.
The decision was taken due to fundraising issues that prevented Loanbook from growing its Spanish loan book as an independent company. AltFi understands the business last night wrote to its investors, informing them of the funding difficulties and adding that it wouldn't be accepting new funds at this time.
Loanbook confirmed to AltFi that it has put an orderly process is in place to continue servicing its existing loan portfolio to maturity, and is considering its strategic options for the longer term. In its note to investors Loanbook wrote:
"The company is experiencing difficulties in raising the capital needed for LoanBook to continue to grow as an independent platform. In this regard, the Board of Directors has decided to suspend the financing of new loans while analysing the company's options."
Investors can continue to access their online accounts, their loan repayments will be processed as usual, and they can withdraw cash should they wish.
The platform promised to use the cash to develop new channels and market new products, it was then Spain’s nascent alternative finance market.
At the time of the 2015 fundraising, Buckland said: “We plan to become the largest business lending marketplace in Spain, catering for investors of all types, both in Spain and overseas, and at the same time providing small businesses in Spain with a much-needed alternative to bank financing.”