The Amigo Holdings PLC (LON: AMGO) share price has been trading sideways ever since the UK’s Financial Conduct Authority (FCA) approved its return to lending on 13 October 2022. Since then, the company has not made any other announcements, leaving investors in the dark about when it will restart lending activities.
However, this is not the first time we have had a long silence from the company regarding the progress made on crucial aspects of its business. For those who have been following the company’s steps since 2020, you will know that it has always shared sparse details of its inner workings until everything was ready.
Amigo tends to work out the logistics of its critical decisions behind closed doors before unveiling the same to investors and the general public. However, this is a good thing since the company has reiterated multiple times in the past its close working relationship with the FCA to ensure that its activities meet the regulator's stringent requirements.
Therefore, despite the long wait, investors should be patient with the guarantor lenders as it puts everything in place before restarting lending activities. For example, the Rewardrate website was not operational a few days ago, but it is now live, and borrowers can apply for loans on the website.
I’m not sure if one can get a loan on the website, but everything seems to work, and those interested in such loans could go check out the website. In addition, the website showcases Amigo’s new lending parameters demonstrating that the company’s goal to be transparent with the fees it charges has been actualised.
Investors should remember that Amigo was supposed to restart lending activities via a pilot project that would test the company’s systems to ensure that everything is working well and that its new fee structure is implemented correctly.
If the pilot lending phase is successful, the guarantor lender will resume fully-fledged lending activities. I have previously mentioned that demand for Amigo’s loans has skyrocketed since it stopped lending in 2020, and I expect the firm to reach profitability within a short period.
*This is not investment advice.
Amigo share price.
The Amigo share price has been trading sideways since its mid-October spike higher. What’s next?
