Funding Circle Strengthens Collections and Collections Team as Payment Assistance Requests Rise
Funding Circle has beefed up its collections and collections teams and agreed to payment plans with defaulting borrowers as it seeks to mitigate the risks of a coronavirus pandemic on investors’ portfolios.
The peer-to-peer lending giant revealed in an update from its global risk manager Jerome Le Luel that there has been an increase in requests for payment plans from otherwise healthy companies.
He said Funding Circle has increased the capacity of its collections and collections team by redeploying and hiring new staff, to answer calls, set up payment plans and provide support to struggling businesses. .
The majority of businesses that have paid late in recent months are now on a short-term payment plan that will give them time to get back on their feet, generate income and then pay off their loans, Le Luel said. .
Read more: Funding Circle tightens its loans
Read more: Funding Circle Approved for US Loan Program
He said that during a typical downturn you would expect high-risk businesses to be hit more when economic conditions change, but the general restrictions on the UK economy have instead seen a large chunk of small and British medium-sized companies suddenly find themselves unable to trade.
“While no one is sure exactly how the coming months will unfold, a brief, brutal recession followed by a rapid recovery as the economy reopens should see many of these businesses recover and start paying off their loans.” , did he declare. .
Funding Circle has become the first P2P lender accredited under the coronavirus business interruption loan program in April and is currently focusing its loans in this area.