December 2020 – Net Return Performance Update

Understanding the platform average net return and the general health of the full loan book helps you to appreciate’s performance in the context of other P2P lending platforms and other forms of investment. The average figure is also a useful point of reference to evaluate your individual net return figure, which is visible on your lender dashboard.

During December 2020 we funded no new public loans; the total number of public loans made via since its inception stands at 271 and the total amount loaned to SMEs stands at £15,393,880.

We had 1 new default and no new refactors in December 2020.

The total capital still out on all loans totals £2,020,568 – only 5.08% of this is currently in default.

During the month of December, we received £50,131 in capital repayments and £36,795 in interest payments on public loans.

The net recoveries position was £10,292 recovered from default.


This led to an overall loss of £28,966 for lenders or an annualised loss rate of 17.20%;

December was a significantly poor month in terms of lender profit and platform net return when compared with the average.

We keep a rolling 12-month return figure to track profits over the last year; this month’s performance brings that down to 2.79%.

We also track the net return rate for the lifetime of the company; as you can imagine this figure remains fairly consistent and currently sits at 6.09% net return per year.

In December, we added two new public loans to the Primary Marketplace.


Covid-19 led to cashflow difficulties for some of our borrowers, and this month we classified one loans as a ‘default’ which led to an overall loss for the month. This loan lapsed into 90 days past due, at which point our net return analysis classifies it as being in default and makes an immediate bad debt declaration (to simulate the likely impact).

These loss making months do happen, but they are infrequent enough that lenders’ profits in other months keep them in an overall profitable return position. Due to the Covid-19 crisis, we anticipate a lower platform annual net return than we have seen over the past few years; 2020 was still a profit-making year.

As a team we work hard to keep in contact with our existing borrowers, establish how their businesses are being affected by the current economic impact and where possible offer assistance. This assistance is offered in the form of short repayment holidays or interest-only repayments. Amendments such as these to existing repayment schedules are only granted where a borrower specifically requests assistance and complies with our requirements. We’ve also been actively assisting businesses to gain access to the numerous government initiatives to support UK businesses.

As a platform we are continuing to lend, but have significantly amended our credit risk processes to account for the current risks affecting businesses.

Find out more about how we’re working to help protect your investments during this period.

Notes on the methodology:

This data is generated from algorithms that look at a set of standard rules to classify payments as interest, capital, or recoveries as well as loans as performing, defaulting, or bad debt. This is subject to change, so it may not always match our manual changes to loan status or repayments. This helps to keep the data impartial and consistent, unaffected by human bias or expectation. This data refers to platform average data; individual user data and investment performance may differ according to varying lending strategies and behaviour.

We treat all the users as one ‘Superuser’ that all transactions from public loans are applied to; we exclude private loans and treat refactored loans as a single loan.

More information about how we calculate Net Returns is available in our Lender Education section.

Please also note:

This material contains certain data and analysis that has been prepared by Ltd. The information provided is correct at the time of publication or the date shown on the graphs, and may be subject to updates and revision, and may change materially without notice. Subject to applicable regulations, no person is under any obligation to update or revise the information; our stats page is updated on a daily basis.

Past performance is not indicative of future performance. Capital at risk. Find out more about the risks of lending.

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