LendInvest has confirmed that its world record breaking peer-to-peer loan has now been paid back.
The deal, which was featured on the front page of the Financial Times, received global coverage for the unprecedented loan back in January this year. The FT described the £4.1m loan against a commercial building in Croydon, South London, as transformative for peer-to-peer finance.
The borrower, who required the funding after being let down by a high-street lender, had a long-standing relationship with LendInvest’s affiliate business Montello, and the loan allowed the developer to purchase the Croydon building whilst certain planning issues were sorted out.
The development, known as Green Dragon House, will offer over 120 new flats for the area, providing long-awaited affordable housing in London.
The investors were paid a net return of 6% for the six months in which their money was invested in the loan (i.e. 12% per annum).
The loan has now been paid back via a financing arranged by John Kerrigan from Arc & Co, Mayfair based brokerage.
Christian Faes, co-founder of LendInvest, said: "As with any loan, it can only really be characterised as a good loan when it is repaid.
"We are experienced lenders, and we have what we believe is the best deal-flow and underwriting experience in the secured P2P market.
He added: "While some platforms are starting to see some hefty defaults and investor losses, LendInvest is able to exploit its experience and track record as a lender. Unfortunately, some platforms are going to learn that it is easy to lend money, the hard part is doing sound loans that get repaid."
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