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Debunking some myths about peer-to-peer lending

Debunking some myths about peer-to-peer lending


1. Peer-to-Peer lending isn’t flexible

At Assetz Capital we offer interest-only periods, partial amortisation, ad hoc facility repayments and early repayment (usually without Early Redemption Charges). Many of our loans are not standard amortising loans.

As a small organisation with a lot of lending experience on the team, Assetz Capital is able to be flexible and use judgement as to whether proposals are worthy of support.


2. Loan term tick-lists are huge

We don’t use tick-lists. We treat each individual business loan on merit. We take the time to understand your client’s business and its future income generation, to enable us to offer a loan that meets their requirements.


3. The loan application process is slow

At Assetz capital, we provide a decision in principle in one business day. Within 5-days of our application pack and due diligence being completed, your client could expect to be in possession of a formal offer letter. Compare that to 144 days SMEs can wait for a loan to be agreed with high street banks*.


4. Certain businesses types won’t be considered

Putting businesses in a box isn’t what we are about. We will consider any business from all corners of the UK, including Northern Ireland. We appreciate that there are thriving businesses in perceived poor industry sectors.


5. There’s a lack of funding certainty

At Assetz Capital, agreed funding is very much a certainty as we don’t rely on selling units of the loan to fund it. Loans are agreed in full and are drawn down without having to wait for them to be absorbed on the aftermarket.


6. Peer-to-peer borrowing is a last resort

Some businesses may think that peer-to-peer loans are only an option when all other routes have been exhausted. Our appetite to lend is comparable with that of the challenger banks and other specialist and alternative lenders. In fact, Assetz Capital has lent well over £700 million to UK businesses since 2013.


7. Peer-to-peer isn’t a regulated industry

The peer to peer industry has been regulated by the Financial Conduct Authority since April 2014. This not only encourages greater competition within the industry, it also means that investors have greater protection. This regulation also ensures that platforms maintain a stable financial position and have the necessary contingency arrangements in place in the event of a platform failure.

We aim to be as flexible as possible in our approach which is reflected in our terms. Call our Business Development Team on 0800 470 0430 to discuss your client’s requirements in more detail.


* http://www.smeweb.com/2018/09/20/high-street-bank-converts-just-8-sme-loan-applications/

- January 3, 2019