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The Assetz Capital platform is no longer open to investment from individual investors. No new investments into peer-to-peer loans are possible and, as a result, no new funds should be deposited. The existing loan book relating to the Retail platform is now in run-off and this will, over time, deliver the return of capital to investors. Full information can be found here . Existing Retail lenders can still log in, view information regarding their account and loan holdings and operate their account in accordance with the information regarding the run-off provided on the link above. Please see this important message regarding the currency of the information on the pages on this website.

One year on - Assetz Capital and Royal Bank of Scotland (part 1)

One year on - Assetz Capital and Royal Bank of Scotland (part 1)

Can you tell us a bit about the partnership’s background?

Assetz Capital, which launched in March 2013, is now one of the largest peer-to-peer business lenders in the UK, having lent more than £80 million to UK SMEs and property developers. As a peer-to-peer lender, the business pioneered the sector by becoming the first provider to take tangible security on every loan in order to protect investors. This proved so successful that several other platforms have adopted a similar model.

Assetz Capital and RBS have created an innovative partnership to improve access to credit for SMEs.

If RBS is unable to help an SME get the loan it needs, it will pass on relevant details to Assetz Capital, who will work with the business to develop an appropriate loan package to suit both the peer-to-peer investors and the SME borrower.

The SMEs may be either existing business finance customers of RBS, or new businesses seeking funding. According to government research, 50% of first-time business loan applications are turned down. This agreement is set to improve access to finance for thousands of established SMEs across the UK - so this figure is expected to fall.

Assetz Capital believes in Fairer, Growth, Together. This statement means that all stakeholders involved in the business should get a fair deal and be treated in the right way, and that everyone should benefit- be it financially, emotionally or intellectually. Partnerships with other institutions are part of this ethos. Assetz Capital gains new customers, investors get access to new opportunities, customers get the funding they need to grow and the partner institution benefits from a more loyal customer.

 

How did the collaboration with RBS come about? Whose idea was it and who approached whom?

Since inception, Assetz Capital has been in discussions with numerous financial institutions to determine a way of working for the benefit of both investors and small businesses.

RBS was an early adopter. It recognised that alternative finance like peer-to-peer lending is potentially a major aid to their customer service experience – helping them retain long-standing customers they may not have been able to lend to.

Having worked in large banks – including RBS - before, the relationships were initially struck up by Assetz Capital’s Managing Director, Andrew Holgate. At the same time, a team at RBS were already looking at this market and how to work with it. The timing couldn’t have been better. Andrew’s career at RBS made discussions much easier as he understood their culture, and had also created a business that RBS found easy to understand and acted in a similar way to more regulated businesses.

 

What benefits does the collaboration bring to both parties?

It’s not so much about what the advantage is for both parties, but the advantage for the customers involved in the process. Through the financial crash, customers found it more difficult to access the funding they need, not because the banks didn’t want to lend but because liquidity meant it was harder for them do so. This scheme lets RBS help get customers the funding they need. It was a fantastic decision by RBS to be a first mover in this regard.

For Assetz Capital as a lender to SMEs, the referral programme provides good quality introductions to creditworthy businesses. Assetz Capital can then structure a loan for the customer and allow investors to access this investment opportunity.

Click here to find out more about the breadth of products and services Assetz Capital can offer businesses.

 

As with most forms of investment, peer-to-peer lending carries a degree of risk to your capital; in this case, if borrowers were unable to repay their loans. At Assetz Capital, we seek to reduce this risk to our investors by taking asset security on every loan, with the added benefit of a discretionary Provision Fund for some of our investment accounts.

- February 19, 2016

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