P2P lending startup Funding Circle adjusts pricing to mitigate Covid-19 economic uncertainty

Thursday 26 March 2020 10:45 CET | News

Funding Circle has tightened its lending and adjusted its pricing to mitigate the current economic uncertainty caused by the Covid-19 pandemic, according to P2P Finance News.

Funding Circle is a peer-to-peer lending marketplace that allows the public to lend money directly to small and medium-sized businesses. In the first half of 2019, the lender tightened its lending in response to changes in the macroeconomic environment.

In recent weeks, the company revealed it had seen a significant rise in searches for business loans as small- and medium-sized enterprises look for financial support to get through the uncertainty caused by Covid-19. As a result, it has now extended this tightening, strengthening its criteria for businesses from vulnerable areas of the economy.

Furthermore, Funding Circle has also ‘heightened’ its risk monitoring and allocated extra resources to its collections and recoveries team to support the businesses investors are already lending to. Despite these tighten rules, Funding Circle will continue to monitor the environment closely and will regularly refresh its loan projections through its loan statistics page using the latest available data.

Regarding the actual economic environment, Funding Circle’s loanbook has been built to remain resilient and is well-positioned to withstand an economic downturn, according to company’s representatives.
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Keywords: Funding Circle, loans, lending, COVID-19, risk, monitoring, UK
Categories: Banking & Fintech
Countries: United Kingdom
This article is part of category

Banking & Fintech