What happens if a Borrower loan goes "bad"?
With respect to Borrower loans, Loop Funding Inc. is responsible for administering, collecting payments, and dealing with collections in the event of default.
In the event a Borrower business defaults on its loan, as per the terms of service, Lending Loop will in all cases make commercially reasonable efforts to have the best chance of collecting on monies owed, and liquidating any collateral available. As each situation may differ, Lending Loop may decide to use legal representation or a 3rd party collections agency in order to attempt to collect on loans. Please note, in a default situation, Lenders should expect a substantial wait as collections processes can take several months before seeing any recovery. It is also unlikely that all outstanding principal will be returned.