Assetz Capital, one of the UK’s fastest growing peer-to-peer alternative finance platforms, today announced that it has secured funding from a number of financial institutions that is now available and will be lent to UK SMEs in the coming months.
This is in addition to the retail investor base of 11,000 individuals now lending through the platform.
Totalling £525 million – £325 million from two funds and £200 million from retail investors – it will significantly aid credit-worthy, growing businesses and property developers who can apply and receive funds, following a successful application process, within a matter of weeks.
The funds topping £525 million are available to apply for from today. Significant additional funding for SMEs and property developers through Assetz Capital is anticipated throughout 2016.
Stuart Law, CEO at Assetz Capital commented, “UK SMEs continue to search for the appropriate funding to help them grow and prosper yet traditional funding lines have either been blocked, or have been significantly hampered for a number of reasons.
“Having more reliable sources to apply to and gain funding is fundamental to not only an individual SME’s success, but the future of the British economy. Through collaboration, we are now an important cog in driving the UK economy forward.
Assetz Capital is committed to helping fill the finance gap left in the market from the credit crunch, where traditional lenders are often unable to provide businesses with the funding required. Since inception in March 2013, more than 220 Assetz Capital loans, totalling approaching £100 million, have been funded. In addition to personal guarantees from directors, Assetz Capital takes asset security, including charges on property and other hard assets such as plant and equipment, to support the loans.
In the past year, Assetz Capital’s SME finance product range has grown to incorporate short-term invoice finance loans to ensure a full range of financing solutions are available for a business. Others include:
· Business term loans – One, three or five year loans for trading SMEs to assist with expansion, cash flow or to fund a specific project.
· Development finance – Finance for residential or pre-let commercial property.
· Single invoice purchase – Short-term finance advanced against an individual sales invoice.
· Property term loans – Medium term finance for residential (including buy to let loans) and let commercial properties.
· Trade finance/short-term contract finance – Import finance, invoice purchase or accelerated cash flow on a sales contract.
· Bridging finance – Short-term loans for residential, commercial and semi-commercial (mixed use) property.
The Assetz Capital peer-to-peer lending model has been active for both borrowers and lenders. Last September, it launched its third investor account – the Quick Access Account (QAA), with Provision Fund.
The account has a capped target rate of 3.75% gross per annum that can vary each month, being set at the beginning of each month based on the loans within the account. It will never fall below 3.75% gross per annum. Demand from investors was so strong that the original cap of £1 million was reachedwithin 20 hours of launch. It has since been increased and is expected to have attracted £10m of lender capital in January.
Stuart Law, added: “Having great products for borrowers and investors is vital when demand on the borrowing side is so strong. Having the funding in place by working with a number of outside funding sources greatly increases borrower demand. The retail crowd then also benefits, and we will always ensure the retail investor get their fair share of loans, on the safest terms we can deliver. All parties can win – which is the true essence of peer-to-peer lending. Continued growth will benefit both UK SMEs and investors.”