Growth Street entered into a Resolution Event in June 2020. As of 13th January 2021, all remaining funds have been returned to peer-to-peer investors and we have applied to cancel our FCA permission.
As a result, we no longer report on our portfolio and default rate. This page was updated on 13th January 2021, and the figures below were as at 4th December 2020.
|Sector||Number of borrowers||Total facility available as a percentage of whole loan book||Average available facility||Average amount currently outstanding||Expected default rate|
Business ProductsManufacture of business machinery, equipment, vehicles and other products
Business ServicesProfessional, scientific and technical services, administrative and support services and renting and leasing activities
CommunicationTelecommunications, media, publishing and broadcasting
ConstructionConstruction and development of buildings and infrastructure
Consumer ProductsManufacture of consumer products
OtherOther business activities including Finance, Real Estate, Public Sector, Arts and Recreation
HealthcareHuman health and social work activities
HiTechSoftware programming and consulting services and data processing and hosting activities
ServicesAccommodation and food service activities, administrative and support services, and other services
TradeWholesale and retail trade of goods
TransportationPassenger and freight transportation and storage
To calculate each industry’s expected default rate, we calculate the average EPD of borrowers from the industry, weighted by each borrower’s Industry Percentage Outstanding.
To calculate the entire loan book’s expected default rate, we calculate the average EPD of all borrowers, weighted by each borrower’s Percentage Outstanding.
EPD means the probability of any borrower being unable to pay their debts in the next year and obtained by us from credit reference agencies.
Industry Percentage Outstanding means a borrower’s outstanding balance, expressed as a percentage of the aggregate outstanding balances of all borrowers in the loan book in the same industry as the borrower.
Percentage Outstanding a borrower’s outstanding balance expressed as a percentage of the aggregate outstanding balances of all borrowers in the loan book.
Gross Default Rate
|Calendar Year||Average Calendar year balance||Gross Default Rate||Current Actual Lifetime Bad Debt Rate||Expected Lifetime Bad Debt Rate|
The ‘Gross Default Rate’ refers to the percentage of loans that were in Default in that year before any actual or future expected recoveries were achieved. During, and in the context of, the Resolution Event, the Gross Default Rate will fluctuate and likely be higher than may normally be expected given (a) ongoing enforcement and repayment matters and (b) the reducing balance of the overall loan book size. As a result, the Gross Default Rate may be significantly higher than any actual losses which may occur in relation to the current loan book.
If a Default happens and the borrower can't resolve the problem we will take action, including legal action, to recover the money from them. The ‘Current Actual LifeTime Bad Debt Rate’ represents the total actual loss, if any, on loans in Default to date. This will be less than the Gross Default Rate where we have made a recovery, for example. The ‘Expected Lifetime Bad Debt Rate’, represents our forecast for the actual loss once all recoveries have been made.