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, we will attempt to recover any monies owing as well as take possession of any collateral available for the benefit of lenders.
Loop Funding Inc. may decide to use legal representation or a 3rd party collections agency in order to attempt to collect on loans, depending on the particular circumstances. Once a loan has defaulted, lenders should expect a substantial wait for any updates on recoveries as the legal and collections processes do not have a defined timeline. It is also unlikely that all outstanding principal will be returned.