FundingKnight will closely monitor and communicate with borrowers throughout the lifetime of the loan, including requesting periodic updated financials and management information. We also continue to monitor the companies through external credit agencies for any changes to credit scores or other potentially relevant information. However, it is possible that a loan will default. If this happens, we will work with the borrower and any guarantors to recover whatever is possible from the borrower and guarantors and distribute any recovered funds proportionally to the Lenders in the loan. In the event that a borrower goes out of business, we will work with the administrator to recover as much as possible from the company. We will also activate any security taken at the time of the loan and invoke Personal Guarantees given by the principals. In some cases, we may choose to appoint a debt collector.
We will keep affected Lenders updated of any developments in a timely manner, via the ‘updates’ tab of the Loan Details. We will inform you by direct email immediately we publish a new update.