Peer-to-peer (“P2P”) and peer-to-business (“P2B”) platforms have changed the dynamics in the credit markets. They have become more appealing and useful to the public. In addition, they have become increasingly attractive to investors, who are either looking to invest in P2P and P2B companies themselves, or to utilise borrower-lender matchmaking services offered in these platforms. However, as access to credit becomes progressively effortless thanks to these platforms, market failures surface. Given the significance P2P and P2B platforms have gained in the corporate credit market, we examine whether it possible to mitigate these market failures.
Facility Agreement Breaches: Commercial Considerations
This paper discusses how a lender must balance mitigating relationship damage whilst not limiting legal remedies if a borrower breaches its debt facility agreement. We argue that adopting measured communication strategies to complement robust legal responses is essential and enhances the likelihood of an efficient and effective resolution.