Creditors ? I do not understand.

I understand. What I am getting at here is that if as declared lenders funds are separate then risk is very different imo to when they can be raised by platforms administrators.

i have always assumed no matter what the platforms say about plans to run out the business or fancy terms like p2p wills that in the event of a total platform failure(maybe not a wind down) that the loan money would be used and was always my biggest risk with p2p hence the phrase you may not get all your money back(it does not apply just to the loans in good times).If company goes into administration with no assets as many platforms would what money is there?(i once worked for a company with millions of goods in warehouses and still had to claim my redundancy under govt scheme - so no assets would certainly not bode well) How would the administrators get paid and any money returned to us?
I know someone/platform will say things are in place to deal with it but i know what i believe and the early signs from the first companies would seem to suggest thats the way it would go

Col - Closed for being unregulated and playing outside the rules. Nobody knows how it's going to end up, not least because nobody yet knows whether the loan book is fully recovered.
Ly - "New terms" loans, loan separate from company finances - loan book gone to external manager for run-off, Ly Ltd gone to administrators. "Old terms" loans, you were lending to the company, so there never was any separation.

Can only speak of the couple of times i was made redundant and the company closed.In a normal business there would be assets to sell from possibly goods,vans,buildings etc down to the office chairs  the money is then paid out to creditors penny on the pound with the insolvency practitioner running the business (and i would assume getting full payment)
As i said in another post there may not even be enough money in a business to pay redundancy so the Govt steps in i have even seen a supplier who got wind of a closure send the "boys" round to take back unpaid stock before it became property of the administrators .So its always confused me when P2p platforms say they have plans or so called wills in place when if they become insolvent they would need paying to proceed with the plan
       

 

Its probably a reason i should not be in p2p if i don't know the answer but i have always just assumed the worst - but what your saying about the new loans contract and the accounting for in pre planning is the part i have trouble with.How do you guarantee that when a company becomes insolvent that there is any money left to run the business (even if it should be) And then borrowers stop paying so how does the admin team pay to chase the defaults?

The Court ruling in the Beaufort Securities case means that the difference between 'old' and 'new' terms will make little/no difference as to where costs can be recovered from. Time will tell on this one as to the order in which the various 'pots' are accessed.