FundingSecure, the peer-to-peer lending platform, has entered administration.
The company specialised in loans against assets like classic cars and paintings. FundingSecure facilitated substantial loans from retail investors to third party borrowers and had a loan book at roughly £80m.
The accumulated loan book represented approximately 486 investor loans from circa 3,500 investors. These investors are now waiting to hear back about how much of their money they can get back.
The investors have been informed that some of these loans have failed to perform according to expectations. FundingSecure has also got embroiled in fraud lawsuit involving the art dealer Matthew Green, who the lender claimed owed it about £3m.
Jonathan Avery-Gee, Edward Avery-Gee and Daniel Richardson of CG & Co were appointed administrators of FundingSecure, having received the approval of the Financial Conduct Authority of the appointment.
It marks the second P2P lender entering administration in 2019, with property lender Lendy collapsing in May.
That being said, P2P lenders have attracted 28.1% of the total marketplace lending deals in Europe between 2014 and the first half of 2019, according to FinTech Global’s data. Of that, 44.7% were in the UK.
In total, the P2P lending space attracted roughly $1.18bn, with the total of the marketplace lending deals being worth over $4.2bn in that period.
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