Growth Street review
Growth Street is one of the newest platforms to enter the UK market. It competes against Funding Circle and RateSetter. It has an unusual structure for its loans – all loans are 30 days which are then ‘rolled over’ at the end of this period. This structure means that investors can sell their entire investment within a 30 day period. An interesting feature of Growth Street’s platform is that investors cannot select individual loans, they instead receive exposure across all loans (currently 126 borrowers). A protection fund exists which is designed to cover losses from company defaults. The protection fund is currently well funded versus Growth Street’s 12 month expected loss estimates, but this is something that investors should monitor. Growth Street claims to make use of ‘Advanced Data Integration’ which is designed to provide real-time access to the banking and accounting records of its borrowers, and spot emerging risks. Growth Street has only been lending since 2014, but its lending record to date has been strong, with only 3 defaults and no losses (as at June 2017). Growth Street is currently a small platform, and as a result, most investors will probably limit their allocation to it until it grows further and develops a longer track record.