Peer-to-peer lending business enters administration

Business Loan Network, a peer-to-peer lending business, has announced that it has fallen into administration.

Formerly known as ThinCats, the business originally exited the retail peer-to-peer lending market in December 2019 to focus on its growth within institutional funding. As part of this strategy, it started a run-off plan for its peer-to-peer business and migrated its lender communications and services to sister brand Business Loan Network.

However, the firm has since decided to call in the administrators in a bid to protect the ongoing interests of its parent company ESF Capital. In a statement they 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."

Commenting on the announcement, joint administrators Geoff Bouchier and Robert Armstrong of Kroll said: "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."

The administrators added that ESF Capital will continue to be the main contact for borrowers and lenders as they look to the future of the company. Lenders will also continue to have access to the company's online portal, including its internal messaging system.

All other branches of the ESF Group will continue to trade as normal and ESF Capital, trading as ThinCats, will remain as a going concern.

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