As we adjust to the 'new normal' (which is very much still in flux), at CrowdProperty we have been reflecting on the strong performance of the business throughout lockdown and the impact of this for your lending going forward.
CrowdProperty has ranked in the Top 10 in Europe for lending volumes across all online lending sectors (consumer, business and property) since April. This is a result of attracting more and more high quality project applications meeting even tighter criteria through our uniquely direct origination strategies and, most importantly, funding projects that can progress in this environment safely and with appropriate site operating procedures in place. We have been working closely with our existing borrowers, our existing pipeline and new high quality project applications as well as supporting developers who have had funding offers / drawdowns cut when the majority of lenders in the market closed (largely due to many having single wholesale sources of capital with broader exposure to equity market volatility). With diverse sources of capital across retail, high net worth, private fund and institutional investors, we are proving ourselves as a more reliable funder - the 'certainty' in our 'speed, ease, transparency and certainty' offering to borrowers - than anyone else in the development lending space, significantly raising CrowdProperty's profile and reputation in the market which is attracting more and more quality project applications.
We received over £200,000,000 of project applications in July and have now assessed a total of over £3.6 billion worth of projects across more than 4,200 applications. We have now funded almost £100,000,000: that's less than 3% of applications, because we have tough criteria - furthermore, that level of direct, non-brokered application volume gives us the largest reference data set of anyone in the development lending market to make excellent lending decisions. With ever-tightening criteria, we are more particular than ever about the carefully curated, quality lending opportunities listed on the platform, drawing on our data, analytics, market knowledge and deep expertise to predict, mitigate and manage risk on behalf of our lenders.
Despite a tough refinancing and sales market, we repaid £10,000,000 in capital and interest to lenders since lockdown began and have now paid back over £45,000,000. This is through a time when a number of peer-to-peer lenders temporarily closed to retail investors, stopped allowing withdrawals, slashed interest rates, introduced lender fees and even had regulatory permissions withdrawn. We continue to work on a one-to-one basis with our borrowers to support progression and exit of their developments, always ensuring our lenders’ position is well secured.
We are funding projects as quickly and reliably as ever and acknowledge that this can be frustrating for those who miss out. Whilst high demand for project lending continues, not least in the form of ISA transfers flooding in from other platforms as investors look for the yield, quality and security that CrowdProperty has proven through more than 6 years of lending, our medium-term lender-side aim is for projects to fund in more like 24 hours, not 24 seconds to enable everyone to participate, irrespective of their availability through the day. We have a strong pipeline of projects that we'll launch when it's right for those projects to progress and we're working hard to bring you more, supported by an even stronger market reputation and application rate - but we will never compromise on quality and criteria are even tighter in these times.
We’ve built the best property project lender in the market to attract the very best lending opportunities, taking a long-term, strategic perspective on the business to ensure that it is robust and sustainable through all market cycles and that we continue to deliver exceptionally for all our customers.
Find out more at www.crowdproperty.com
Read more about how investing works and investment options at www.crowdproperty.com/lenders
To speak to one of our Lender Relations Managers, please get in touch at hello@crowdproperty.com or call 0203 012 0161.
14 Sep 2020
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