By Oliver Smith on Monday 22 June 2020
Growth Street’s Kim Goetzke says £17.5m in outstanding loans are being recalled.
After unsuccessfully looking to stem withdrawals from its platform since March, Growth Street last week triggered a ‘resolution event’ with all its loans being recalled.
The move means that all borrowers will have to repay their loans within 90 days, and any losses will be spread across Growth Street’s investors.
As part of its resolution event Growth Street also announced it will be shuttering its peer-to-peer platform and moving towards institutional funding.
“We will work with all these businesses, individually, to help them to find alternative sources of finance and to develop bespoke repayment plans to try to minimise any disruption to their day-to-day operations,” said Kim Goetzke, Growth Street’s chief operating officer.
Goetzke said Growth Street is planning on launching a new lending product once the process is complete.