Our action upon default:
- Unless already appointed we would appoint a recovery agent as soon as is practicable.
- We then consider all practical sales options to result in a commercially viable outcome, which may include auction or selling on the open market.
- We may take any action we deem appropriate to ensure the repayment in part or in full of a non-performing loan.
- Our Credit Committee may remove a loan from a non-performing classification under exceptional circumstances where a borrower is able to provide persuasive evidence that they will repay the loan within the tolerance period.
How will you keep investors informed?
- When a loan passes its repayment date, it will be marked “IA (Interest Accruing)” on the platform within five working days.
- Where it becomes apparent to us that a Loan will not repay by the original or any other repayment date the platform shall be informed of this typically within five working days of this becoming apparent to us.
- If our conclusion is that a loan will be repaid after entering the Tolerance Period, we will update the platform within five working days with an explanation of why the loan has not been defaulted (i.e. why there is sufficient clarity that the loan will be repaid within the Tolerance Period).
- Whilst Loans are within the Tolerance Period they will remain available for sale and purchase on the Available Loans section of the platform.
- We will indicate the interest status of a Loan once it is within the Tolerance Period (i.e. if interest is accruing) under the “%PA” column of each section of the platform within which the loan appears. All changes in status will be noted on the platform within fve working days of the change.
- Within five working days of a loan being defaulted it will be placed within the Default Loans section of the platform.
- Loan parts from a defaulted loan will no longer be listed on the Available Loans section of the platform but will be available for sale and purchase on the Default Loans section of the platform.
- An update will be posted on our platform within five working days of any exception to this policy being agreed.
Please click here to see our Non-Performing Loans Policy.