Over the past two months, our team has been working remotely to continue running our platform during the Covid-19 pandemic with no disruption to our service.
However, these are not normal times, and we have had to adapt to meet this challenge – as have many of our borrowers. We have reached out to every single LendingCrowd borrower, to find out how their business is coping during the current trading conditions and offer our support.
Previously, we did not offer repayment holidays, but we put in place a process for providing these to help eligible borrowers emerge from this pandemic in as strong a financial position as possible. All requests for a repayment holiday, lasting a maximum of three months, have been assessed on a case-by-case basis by the experts on our Credit Team and we did not charge borrowers any fees for implementing a repayment holiday. We have also waived our fees around changing repayment dates to help businesses better plan their cashflow requirements.
We will remain in contact with borrowers during their repayment holiday and will continue to support them so that we can serve the best interests of our borrowers and lenders.
What this means for you
For those businesses that have a repayment holiday approved, you will see a change to the borrower’s repayment schedule. This will show the next repayment being three months later than originally scheduled. You can check your LendingCrowd account at any time to see the status of individual loans.
In March, we deactivated the auto-investment feature in Growth and Income accounts, which automatically uses repayments to purchase additional loan parts. We did this to provide a timely opportunity for lenders to consider how they want to manage their money on our platform.
With auto-investment switched off, Growth and Income account holders will see cash building up in their accounts. If you are happy to do so, you can quick and easy reactivate this feature, so that our platform will continue to invest on your behalf again:
- Log in to your LendingCrowd dashboard
- Choose the account you want to change
- Select ‘Manage account’, then ‘Manage your repayments’
- Choose Growth Mode or Income Mode to reactivate auto-investment
For the same reasons, we also switched off the Autobid feature in Self Select accounts. If you wish to re-enable this feature you can also change your Autobid settings at any time by:
- Logging in to your LendingCrowd dashboard
- Choosing the Self Select account you want to change
- Selecting ‘Manage account’, then ‘Configure Autobid’
During this time, as expected, opportunities to lend responsibly to new borrowers have reduced significantly. This is driven by the launch of both the Bounce Back Loan Scheme and the Coronavirus Business Interruption Loan Scheme, and also the tightening of our credit policy around sectors that were especially affected by the impact of the pandemic. We are continuing to monitor this closely.
Support and information
As a responsible lender, we have developed guides and information to help borrowers benefit from the package of support available from local and national government. These guides are tailored for SMEs in England, Wales and Scotland and you can download these from this blog post. We will continue to update these guides as more information becomes available.
We have had many messages of support from our community of lenders to our borrowers. The collective will to support our small business community has been amazing and we thank you for this.
If you have any questions, please email email@example.com or call 0345 564 1600.