MoneyThing said it will undergo an orderly wind-down.
Peer-to-peer (P2P) lender MoneyThing is no longer taking any new investments or customers.
It has decided to undergo an orderly wind-down because of market conditions.
Sophie Pearce, managing director at MoneyThing, said:“We have taken the decision to place MoneyThing into orderly wind-down and we are no longer taking any new investments or new customers.
“We have found it is increasingly difficult to compete in the current market conditions and we expect there is a tougher economic environment to come.
“During wind-down the business will continue to be managed and administered by the existing directors and our aim will be to minimise any disruption to our customers and ensure the safe return of funds.”
Damien Druce, an independent specialist lending consultant (currently retained by bridging lender Interbridge), added: “It’s good to see a P2P lender recognising it can’t sustain its position in the market and leaving in an orderly way in order to protect investors.
“I think that in the months ahead, there may be other, smaller P2P operators, that will struggle to compete with the larger and more established players and may leave the market.
“Funding Secure and Lendy are two recent examples of where investors were left uncertain about their ability to recover their investments.
“I applaud the decision taken by the MoneyThing management team and the responsible approach that they are taking to withdrawing from the market.”
