With news that Crowdstacker have outstanding loans with Amicus Finance, now in administration, coming hard on the heals of their loans with BurningNight, also in administration, looking likely to fail, Seedrs investors in Crowdstacker must be a little worried.
If there is one thing P2P lending platforms hate, it's loan defaults. One is unfortunate but two side by side is careless. How many more out there are waiting to go?
Seedr's investors put £800k into Crowdstacker - one of the UKs leading P2P companies - in July last year. Now, with two large partial defaults on outstanding loans totalling £4m and £7.5m, Crowdstacker doesnt look quite so appetising.
According to some good research from the Times, Crowdstacker was also borrowing money from Amicus, as well as lending to it. Here
Calls for better regulation and more transparency in the P2P and equity crowdfunding sectors, led mainly by private investors, have fallen on deaf ears so far. Is that about to change? Or will it take another train wreck like 2008 to get some reaction. Seriously, when will we learn.
We wrote about Crowdstacker here. The Amicus administration has not yet filed relevant documents but the latest on Burningnight suggests that only a fraction of the 'secured' £7.5m loan will be repaid.
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