For borrowing businesses, Growth Street’s GrowthLine product acts much like a conventional overdraft. This means that borrowers are able to make early repayments to their loan as and when they wish, at no extra charge. Although all loans on the platform are for 30 days, some borrowers may want to keep the funds for longer than that. If this is the case, when their loans are due to be repaid at the end of the 30-day term, we can use available lender funds on the platform to extend new funds to the borrower. These new loans are automatically used to repay the borrower’s existing loans, which means the original lenders get repaid on time; meanwhile, the borrower can keep these new funds for a further 30 days (we call this a 'Rollover'). More information regarding the mechanics of the exchange can be found here.

If at any stage there are not enough funds on the platform to fund requests from borrowers and/or Rollovers (this is called a 'Liquidity Event'), we will notify affected borrowers that their loans cannot be rolled over and must be repaid within three months. If the Liquidity Event is remedied before the borrower repays, we can resume normal operation of the platform, including making Rollovers available again.  

A Liquidity Event can be rectified if we return to having enough money on the platform to fund Rollovers and drawdown requests), normal operation of the platform, including the use of Rollovers, will be restored.

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Your capital is at risk when you lend to businesses. Find out more here.

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