The majority of borrowers in the SME Credit Realization Fund (SCRF) portfolio are now making full payments, but the Investment Trust has said there is still uncertainty about future arrears.
The fund, previously set up to secure loans on Funding Circle’s peer-to-peer lending platform, is located in the Closure process.
An SCRF update found that as of September 30th, more than 90 percent of non-defaulted borrowers in the UK were making full payments, with an additional six percent still on forbearance.
In the US, more than 82 percent of non-defaulted borrowers made full payments, another 12 percent were still on deferral plans, while in continental Europe more than 96 percent made full payments, the update said.
However, the report adds that prepayment and settlement rates “remain elevated but are likely to normalize” once government support such as the coronavirus business interruption loan program ends.
Continue reading: Funding Circle Investment Trust secures support for closure
“Short-term recoveries have been supported by these programs, but long-term recovery expectations have been revised downwards slightly to reflect expectations of a weaker prevailing economic climate,” the document reads.
“The ability of borrowers of small and medium-sized businesses to meet their loan repayment obligations, and thus the performance of the company, will continue to be affected by the Covid-19 path and local and national lockdowns, among other things” as a fiscal and monetary response, via the after like there is uncertainty. “
SCRF achieved a net asset value return (NAV) of 6.23 percent for the third quarter of 2020.
It is currently trading at a discount to the NAV of 26.5 percent.
Continue reading: Funding Circle fund returns £ 16 million to investors