The future of Assetz Capital
This is the next stage of growth for Assetz Capital. It will offer a new form of investment for our lenders and is the second new product in as many months, following the Green Energy Investment Account.
In 2015 we will be focused on building a range of credit products to suit all kinds of businesses, as well as a marketplace of peer-to-peer investment products for a range of investors, from retail and ISA through to hedge funds and credit funds.
What is invoice finance?
This is a short-term funding option for businesses lasting, on average, around 42 days; making it a liquid investment when compared to longer loans on the market which require more commitment. We’ve found there is a big appetite from both businesses and investors for this type of loan.
How will it work?
- We enable businesses to borrow money by using their sales invoices as collateral in return for healthy returns for our investors.
- Unlike other invoice finance peer-to-peer platforms, we will let you invest as little as £1, with the return expected to be in the region of 10% P/A gross (before any taxes and defaults that may occur).
- As is the case with the Green Account, lenders will be able to automatically diversify their investments across an invoice portfolio, rather than having to pick individual transactions to invest in.
- Initially, this will only be available to our UK lenders, but it will quickly roll out to Ireland and other European countries and then beyond.
This joint venture cements our desire to become the lender of choice for SMEs as it is helping us to expand the range of funding solutions we offer.
As with all loans from Assetz Capital, this new product will be backed by realisable security and will go through the proven IFG credit underwriting process.
Who are IFG?
IFG has worked with hundreds of thousands of small businesses across 9 countries for more than 40 years, and their losses for the last four years, across the whole of IFG’s invoice discounting volume of funding, is just 0.04% P/A average.
Offering alternative short-term business funding solutions, they have successfully grown into a valuable short-term funding solution for many SMEs.
We’re thrilled to be partnering with a company with IFG’s reach, and to start providing invoice finance in the UK. It’s just one of the exciting things we have in store for our lenders in 2015.