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Companies exiting P2P market
With no less than thirteen new peer-to-peer companies launching in 2013, there are two companies that have effectively exited the P2P market this year. These companies are Encash (YES-secure) and Squirrl.com.
Encash has only arranged three loans in 2013, of which two have been repaid and the remaining one is more than two months late. The website launched back in 2010 and in the early days did appear as a potential rival to Zopa, but the site failed to gain traction with lenders and to date has only arranged loans of just over £500,000. This puts Encash (YES-secure) at number 12 in the P2P money league table of companies by loans arranged. By way of comparison, Zopa which has arranged loans of over £426million. There are still loan requests being made on the Encash (YES-secure) website, but despite rebanding twice, it is unlikely these will ever be fulfilled. We have also noted a rise in late payments recently, which will be of concern to lenders.
Squirrl.com have not arranged any loans since December 2012. Their business model was lending against invoices for The Danwood Group Ltd. When P2P money spoke to them in 2012, just after they launched, they indicated this may expand to other companies. However since then there has not been any additional loan requests.
Neither company were available for comment.