ThinCats closes retail peer-to-peer lending platform

By John Reynolds on Monday 9 December 2019

Alternative Lending

ThinCats said peer-to-peer lending platform no longer “cost effective”.

 ThinCats closes retail peer-to-peer lending platform
Image source: Image of Ravi Anand, MD, ThinCats provided by ThinCats

ThinCats is closing its retail peer-to-peer lending platform, saying it is no longer "cost effective".

ThinCats said it will instead focus on institutional lending.

ThinCats, which was launched in Leicestershire in 2011, said no new loans will be offered on its retail peer-to-peer platform operated by Business Loan Network, the name which ThinCats is regulated under.

A spokesperson for ThinCats said its retail peer-to-peer business had been winding down for some time and the move would not lead to any job losses. The spokesperson said it had sanctioned just two peer-to-peer retail loans on its platform this year.

ThinCats said investors using its peer-to-peer platform will continue to receive interest and capital repayments on the loans that they hold.

Jill Sandford, Chief Executive, Business Loan Network: “The number of loans funded by the P2P Platform has fallen significantly over the last two years and it is no longer cost effective or practicable to raise funds in this way."

“We have, therefore, made the decision to close the P2P Platform to new business and initiate a run-off process for existing investors.”

“The controlled run-off of the P2P Platform will ensure that there is no impact on the returns or service levels that existing investors will receive.   The ThinCats Group will continue to support the funding of mid-sized UK businesses through its institutional funding products.”

The announcement by ThinCats comes as new rules are introduced today (Monday) by the FCA which place restrictions on the marketing of peer-to-peer investments.

It also comes just days after Landbay announced it was exiting the retail peer-to-peer lending market to focus on institutional investors.

 

 

 

 

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