Novaloans Ltd (07639288): administration
- Status
- Administration ended
- Administration began
- 2023-10-23
- Administrators
- Daryl Warwick, Michael Christian Kienlen
- Administrators' firm
- Accounting Partners
- Incorporated
- 2011-05-18
- Location
- Leeds
- Industry
- 64921 Credit granting by non-deposit taking finance houses and other specialist consumer credit grantors
Why it went into administration
- Regulatory change or action
From the administrators' statement
2.6.1 It was discovered in early 2022 that the Company’s website had a major glitch meaning that consumers arriving at the website were unable to proceed past the application page. Implementing a remedy was extremely difficult and time consuming resulting in the loss of potential consumers.
2.6.2 From July 2022 Mintos were subject to new regulation in Latvia which meant funding was halted for a period of review. This resulted in Mr Green loaning additional funds to the Company of approx. £810,000.
In Summer 2023 Mintos ceased to lend to the business with any monies due to Mintos due to be repaid within a brief period (as the loans to the consumers became repayable). This decision arose after Mintos reviewed the Company’s quarterly metrics report in July 2023. The report detailed that lending had reduced and as a result of this, the metrics had dipped under the agreed threshold. Mintos advised the Company that the business presented too much risk and ceased to lend immediately. This resulted in a significant amount of incoming cash being payable immediately to Mintos which meant that the business was unable to service the new customer loans required to sustain the flow of cash into the business.
Administrators' statement of proposals (2023-12-19) · Companies House register