Quantuma appointed to administration of P2P lender ABLRate
Peer-to-peer lender ABLRate has fallen into administration, following a period of financial uncertainty. Professionals from Quantuma are now undertaking the winding down of its loan portfolio.
Aviation and Tech Capital Limited and ABLRate Assets have operated a P2P lending platform and facilitated crowdfunded loans since mid-2014. Trading as ABLRate, the application was used to finance onward lending to small and medium-sized enterprises (SMEs).
Peer-to-peer (P2P) lending, is the practice of lending money to individuals or businesses through online services that match lenders with borrowers. P2P loans are often exposed to high credit risks, as borrowers who apply for P2P loans may possess lower credit ratings, which do not allow them to obtain a conventional loan from a bank. As a result, P2P lenders are exposed to a higher chance of defaults than traditional finance companies.
In common with many P2P lending structures, ABLRate was often used to connect individuals who wished to lend money on a private basis, with borrowers who were seeking to obtain credit outside of the usual credit institutions. Lenders and borrowers could register their interest in participating in the ABLRate scheme by setting up accounts on the Platform.
At its largest, ABLRate hosted loans with a combined value of over £32 million. However, in recent years, this has stretched the capacity of the organisation – and with current combined value of loans, both performing and non-performing, in excess of £20 million – it has collapsed into administration.
Quantuma managing directors Brian Burke, Sean Bucknall and Andrew Hosking have taken on the role of joint administrators, and will now execute the orderly wind down of the loan portfolio in order to return monies to ABLRate’s 6,000 lenders. Prior to Quantuma’s appointment, all ABLRate staff were made redundant, with only a handful remaining to provide support and assistance.
Brian Burke, managing director at Quantuma, commented, “Due to ongoing financial challenges facing the company, the directors resolved that it would be in the best interests of ABLRate and its creditors and loan investors, to appoint administrators. Our focus will now be on securing the best possible outcome for all parties. Wherever possible, this will include the repatriation of client monies, orderly wind down of loan books, and ultimately protecting the interests of investors and creditors.”
The administration team will now contact all those who have been affected in due course and will be on hand to assist any creditors and loan investors who need support. FAQs containing relevant information and contact details have been circulated to loan investors via the ABLRate platform and further updates will be provided as the administration progresses.
