When lending to businesses, there will always be some who are unable to fully repay their loans. We call this bad debt, and when this happens our in-house Collections and Recoveries team will place the loan into ‘default’. They will then act in investors best interests to pursue the outstanding debt and get the best possible outcome for investors.
Currently, loans are defaulted on a Thursday. We want to allow our Collections and Recoveries team to commence formal recovery procedures as quickly as possible, and from Monday 2nd July 2018 we will default loans as and when it is necessary to do so. This means a loan may be defaulted at any point throughout the week.
Finding more information about your defaulted loans
As part of this change, we will no longer be publishing a weekly list of all defaulted loans. When a loan that you are lending to is placed into bad debt, you will be able to find:
- Your total amount of bad debt - found in the ‘losses’ section of your Earnings Summary
- Which of your loan parts are in bad debt - found in your loan parts report, downloadable from the My Loan Parts section
- More information on your loan parts in bad debt - found in the ‘Recent loan comments’ section