Kuflink tightens loan management process
Kuflink has tightened its loan management processes by engaging more closely with borrowers.
The peer-to-peer lending platform has engaged a law firm that specialises in mortgage and debt recovery to contact its borrowers before the loan end date and explain the redemption process.
“The purpose of this is to focus the borrower’s attention that they need to repay our loan, but if we need to do so we could very quickly move to the next stage of the process which could be recovery,” said Narinder Khattoare (pictured), chief executive of Kuflink.
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“Our aim is always to work towards the loan being repaid within the original term, but we fully appreciate there will be circumstances when it will be necessary to consider a re-term.
“If we are willing to consider this, we may also ask the customer for a capital repayment to reduce the loan balance and provide us with proof of the final exit strategy.”
Where a loan is re-termed and the interest rate to the borrower is increased, a proportion of the increased rate will be paid directly to the investors.
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These changes reflect the variable health of the economy, with rising inflation and higher interest rates leading to higher capital costs and lower valuations in the property sector.
“As a result, the P2P industry is experiencing an increasing number of loans where borrowers are asking for more time to repay them, known as re-terming, and Kuflink is no different,” added Khattoare.
“Investors would have originally signed up to a specific term for their investment and understandably be expecting their investment to be repaid to their wallet, allowing them either to reinvest into a new deal or withdraw their funds.
“At Kuflink, our track record speaks for itself, with zero investor losses to date.”
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