Rebuildingsociety “significantly” amends credit risk processes
Rebuildingsociety has “significantly” amended its credit risk processes to account for the risks affecting businesses in the current climate.
The peer-to-peer lending platform said that it continues to lend – and added a new public loan just last month – but suggested that it will be taking a more prudent approach to new loans in the future.
During October 2022, the platform funded one new public loan. This brings the total number of public loans made via Rebuildingsociety since its inception to 292.
To date, the total amount loaned to small- and medium-sized enterprises (SMEs) is £16,873,455.
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In a note to investors, the platform confirmed that it had two new defaults and no new refactors of public loans last month.
“The total capital still out on all loans totals £2,135,615,” Rebuildingsociety said, in a blog post on the company’s website.
“Of this, 11.79 per cent is currently in default.”
£750 was recovered from default in October, while the platform received £452,134 in capital repayments and £29,594 in interest payments.
“We keep a rolling 12-month return figure to track profits over the last year; this month’s performance brings the average to 1.87 per cent,” Rebuildingsociety added.
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“We also track the net return rate for the lifetime of the company; this figure remains fairly consistent and currently sits at 5.88 per cent net return per year.”
The business lender added that it is working hard to keep in contact with its borrowers in order to establish how the current economic situation impacts their business.
Rebuildingsociety said that where possible, it would offer borrowers assistance in the form of short repayment holidays or interest-only repayments
Read more: Rebuildingsociety lenders record profit in September