[ad_1]
Funding Circle has automated the process of updating loans to lenders.
The peer-to-peer lending platform said it would notify investors via a comment on a loan if there is a significant change in its status, such as when it is overdue, enters a payment plan, or is in default.
The platform said it will update the comments every month and that loans that changed status in the previous month will receive an update.
Read more: 90% of Funding Circle borrowers have resumed their monthly payments
“We’ve improved the way we provide updates on the status of a loan to investors by automating the process to make sure it’s simpler and more efficient, which means there’s no more ad hoc updates, ”Funding Circle told investors in a note on its website.
“This new process will allow the team to continue to focus on supporting affected businesses and avoiding unnecessary credit losses, thereby protecting your returns.
“At the same time, these reviews will always provide you with key updates on the business you’re loaning to.”
Read more: Fundraising Circle: Consumers Support Small Businesses This Year
The platform exposed the different stages of an unpaid loan.
These include downgraded loan, overdue loan, pre-default payment plan, default, post-default payment plan, litigation, personal insolvency, and then settlement.
Funding Circle said it first downgrades a loan by removing the risk band if it receives a report that could affect the repayment capacity of the business or the loan guarantor.
Read more: Funding Circle Approaches Profitability After 67% Increase in UK Revenue
[ad_2]
