Connective Lending is winding down after reviewing the viability of the peer-to-peer lending platform in the pawnbroking sector.
However, according to a lender email seen by Peer2Peer Finance News, the platform is winding down after reviewing the current market and the viability of operating a P2P model within the pawnbroking sector.
Connective Lending said that “this has not been an easy decision but one we feel is best for the industry and lenders” and said it has already put in place plans to have its loans transferred to another lender.
The platform has been closed to lenders since 9pm on Tuesday 8 February, with access only granted to lenders with active accounts. It said withdrawals will work as usual and it will put in place more resources to service withdrawals over the weekend.
Connective Lending said that it will start to repay investors the capital and interest for the date the loan has been active and expects the process to begin around 10 February and to be completed quickly.
More time will be given for borrowers looking to redeem their assets and the platform will email the final tax statement to all lenders once all loans have been closed, the P2P lender added.
Connective Lending said it has told the Financial Conduct Authority about its decision to wind-down.
“Having successfully completed and funded several loans on our platform over the past several months, the board of directors at Connective Lending Ltd have reviewed the current market and the viability of operating a P2P model within the pawnbroking sector,” Connective Lending told lenders, in the email.
“After much internal deliberation, we (the board of directors) regret to inform you, our lenders that the platform will wind down with immediate effect. We wish to state that this has not been an easy decision but one we feel is best for the industry and lenders.
“We intend to make the process of winding down as smooth as possible, with minimal disruption to stakeholders. We have already put in place plans to have loans transferred to another lender. We are requesting all lenders not to transfer or invest further funds.
“Finally, we [would] like to take this opportunity to thank all our lenders who have taken the time and effort to invest with us and provide feedback to improve our website.
“We hope you have enjoyed the experience and Connective Lending thanks you all for your support.
“Wishing you all the very best and stay safe.”
Daniel Grimes, managing director of Connective Lending, told Peer2Peer Finance News: “I cannot comment further right now other than repeating the email that we decided it was better for us to exit the P2P business model.”
A note on Connective Lending’s website says that the platform is not accepting any new investors or business.
“We are currently in the process of winding down the business,” Connective Lending says on its website.
“If you are an investor or borrower and have any questions, please contact us at [email protected].”