Peer-to-peer lending firm placed into administration

The peer-to-peer lending arm of Thincats owner ESF Capital has been placed into administration.

Geoff Bouchier and Robert Armstrong, both of Kroll, have been appointed joint administrators of Business Loan Network, based in Ashby de la Zouch.

The company was incorporated and started trading in 2010 operating an electronic peer-to-peer platform, with retail and institutional lenders investing in secured business loans.

In December 2019 the company took the decision to close the platform to new business and following consultation with the FCA, started a managed run-off plan in relation to loan recovery and distribution to lenders.

Geoff Bouchier, joint administrator, said: “The directors of the company took this decision, having regard to the company’s present and likely future financial position, in order to protect the interests of its creditors as a whole.

“It is the intention of the joint administrators to continue to wind-down the remaining loan book during the Administration process. The administrators have appointed ESF Capital, the company’s parent which has been providing services to support the managed run-off plan prior to the administration, as wind down servicer to assist in this process.”

ESF Capital will continue to be the primary contact with borrowers and lenders on behalf of the Business Loan Network.

Lenders will continue to have access to the company’s online portal as well as have access to the internal messaging system within the portal.

Thincats is unaffected by the process.