Neyber, the payroll lending provider, has been placed into administration and its book of business has been sold to its main rival Salary Finance, Corporate Adviser can reveal.
Goldman Sachs-backed Neyber has written to investors saying that administrators BDO will be placing Neyber parent Neyber Holdings into insolvency soon. Investors are not expected to recover anything from the sale to Salary Finance.
As well as Goldman Sachs, investors include a number of individuals in the fintech space, some of which have invested up to £5m personally.
A letter to investors says a further £20m funding from two other potential investors was being considered but that Police Mutual, the key backer of Neyber, decided the certainty of the offer from Salary Finance was preferable.
Neyber had lent £175m to employees at 30.6.19, and had relationships with 400 employers, making its service available to around 2 million people. The deal transferring the book of business to Salary Finance is expected to take place tomorrow.