Kuflink Continues to Strengthen Due Diligence and Improves Processes.
For our investors, investing in Kuflink’s P2P platform continues to be a profitable exercise, but we are always looking for ways to improve our processes and therefore the ability to maintain the high rates of return we are rightly noted for.
Investing in property through any P2P platform carries some risk and that is made very clear before investment is accepted. At Kuflink, our track record speaks for itself, with zero investor losses to date.
That is why, we are keeping an especially keen eye on the deals we are asked to fund. The health of the economy continues to vary, and property developers, who make up a fair proportion of our funding requests, have not been immune to the effects of inflation which has led to higher development and operational costs, while the rise in interest rates has inevitably led to higher capital costs and lower valuations.
As a result, the P2P industry is experiencing an increasing number of loans where borrowers are asking for more time to repay them, known as re-terming, and Kuflink is no different. Investors would have originally signed up to a specific term for their investment and understandably be expecting their investment to be repaid to their wallet, allowing them either to reinvest into a new deal or withdraw their funds.
Kuflink has always had a great track record when assessing investment opportunities. Our team is probably one of the most experienced in the market in assessing new requests for funding but we are also backing that expertise up by introducing the following enhancements: –
• When a loan is re-termed and the interest rate to the borrower increased, a proportion of the increased rate is paid to our investor.
• We are also enhancing our loan management process and engaging a law firm that specialises in mortgage and debt recovery to engage with our borrowers, very softly initially, 1 month prior to the loan end date introducing themselves and informing the borrower of the redemption process.
The purpose of this is to focus the borrower’s attention that they need to repay our loan, but if we need to do so we could very quickly move to the next stage of the process which could be recovery.
Our aim is always to work towards the loan being repaid within the original term, but we fully appreciate there will be circumstances when it will be necessary to consider a re-term. If we are willing to consider this, we may also ask the customer for a capital repayment to reduce the loan balance and provide us with proof of the final exit strategy.
In summary, Kuflink has always advocated total transparency in communicating with you, our investors. We wanted you to know and understand the circumstances surrounding the way that the current economic situation is impacting borrowers and the issues some of them are facing.
We believe our initiatives, as described above, are a positive and proactive additional layer of support for you and our borrowers.