Peer-to-peer lending enters administration

Mon 19 April 2021 | DIVISION SALE

Business Loan Network, a peer-to-peer lending company, announced that it had fallen into administration.

Formerly known as ThinCats, the company initially exited the peer-to-peer retail lending market in December 2019 to focus on growing within institutional finance. As part of this strategy, it launched a plan to liquidate its peer-to-peer business and migrated its communications and services with lenders to sister brand Business Loan Network.

However, the company has since decided to bring in the directors in an effort to protect the ongoing interests of its parent company ESF Capital. In a statement, they said: “The directors of the company have made this decision, taking into account the current and likely future financial condition of the company, in order to protect the interests of its creditors as a whole.”

Commenting on the announcement, co-administrators Geoff Bouchier and Robert Armstrong of Kroll said: “The joint administrators intend to continue to reduce the remaining loan portfolio during the administration process.

“The directors have appointed ESF Capital, the company’s parent company which provided services to support the liquidation plan managed prior to administration, as a liquidation repairer to assist in this process.”

The directors added that ESF Capital will continue to be the primary contact for borrowers and lenders as they consider the future of the business. Lenders will also continue to have access to the company’s online portal, including its internal messaging system.

All other branches of the ESF group will continue to operate as normal and ESF Capital, trading as ThinCats, will remain a going concern.

See the latest struggling UK companies here.

Share this article

Previous Greystone hires Romano Tio from Ackman-Ziff to grow lending business
Next Mintos suspends lending company from platform