FPF sponsor Leadercf facing business problems

The peer-to-peer lending and financing company, Leadercf, made a statement on its website on Monday July 23 regarding problems the company are facing. 

According to the official statement, some projects have not received repayments from lenders on time and the legal representative and actual controller of Leadercf, Zheng Yansen, can not currently be reached. 

The statement says they are actively communicating with authorities and monitoring departments and are trying to solve the problems, by stopping the issue of new lending projects, contacting other lenders to repay sooner, and selling pledges. The company will communicate with lenders about the results. 

The problems were said to have been discovered on Friday July 20, according to a letter to Leadercf’s lenders and users on Monday which Leadercf published on its website on the same day after the official statement was released on Monday. The letter explained the situation and expressed the hope to be given some patience and time to solve the problems. 

Leadercf reached a Chinese regional partnership with the Portuguese National Football Team not long before the 2018 FIFA World Cup. They also sponsored the LaLiga side, RCD Espanyol, back in 2017. 

The company has been operating for almost 4 years and 328 days according to the statement. It was registered in June 2013 in Guangzhou. The Chinese media outlet  Caijing reports that Leadercf received a B round financing of CNY75m from Shenzhen Qianhai Huxing Asset Management Co., Ltd in 2017 and an A round financing from a state-owned company subsidiary Zhongshi Zhaoye (Beijing) Food Development Co., Ltd.  

Leadercf is not the only P2P financing company that is having financial issues. Recently, many companies in the Chinese P2P financing industry have reported to be facing difficulties.  

References: Leadercf, Leadercf, Caijing 

Proofread by Raymond Fitzpatrick