FundingSecure administration not a 'reflection of P2P as a whole', claims major platform

FundingSecure has entered administration and appointed CG Recovery as administrators.

The regulated P2P firm operates a lending platform which facilitates crowdfunded loans for the purchase and development of property.

Jonathan Avery-Gee, Edward Avery-Gee and Daniel Richardson at CG & Co have been appointed administrators of the company and are working closely with the FCA.

Stuart Law, CEO at Assetz Capital, claimed that smaller P2P lenders were “clearly struggling to keep up”.

“P2P lending is an expensive and detailed business to run well.

“It’s also now a highly regulated market which is good for investors with larger, well-funded platforms, such as ourselves, but makes things very difficult for under-resourced businesses. 

Regulated P2P firm Lendy also entered administration earlier this year and had administrators appointed over the company or receivers appointed over the property for two-thirds of its live loans.

Stuart highlighted that the latest news shouldn’t be viewed as a reflection of the P2P sector as a whole.

“[It really is an] important part of the alternative finance industry supporting the country’s need for finance.

“Instead, it is a fact of life now that these businesses have much tighter prudential standards and regulation to live up to.

“We’ll likely continue to see smaller platforms struggle while the established players strengthen and consolidate.”

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