May 2020 – Net Return Performance Update

Understanding the return you’re receiving, compared to the platform average net return and the general health of the full loan book, helps you to appreciate our performance in the context of other P2P lending platforms and other forms of investment.

Before we get to the figures some 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.

With the spread of the coronavirus many investments around the world have been suffering losses during May, but lenders saw returns in May.

During May 2020 we made 1 new public loan; this increases the total number of public loans made via since its inception to 269 and increases the total lending to £15,298,345.

We had a new default and no refactors in May 2020; the default was for a total of £15,849.

The total capital still out on all loans totals £2,639,301 – only 5.05% of this is currently in default.

During the month of May, we received £116,488 in capital repayments, £38,563 in interest payments and the net recoveries position was £15,299 lost to bad debt.

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This led to an overall profit for the users of £21,425 or an annualised return rate of 9.74%; May was a good month in terms of profit and above average for our platform.

We keep a rolling 12 month return figure to track profits over the last year; this month’s performance brings that up to 6.53%.

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 5.78% net return per year.

As a team we are working 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 being offered in the form of short repayment holidays or interest-only repayments. Amendments such as these to existing repayment schedules are only being granted where a borrower has specifically requested assistance and complied with a number of 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 have decided to continue lending, 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.

Please 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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