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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.

The Financial Crash: Is Peer-to-Peer Lending the Solution?

This is a big problem because businesses and enterprises need funding to prosper and grow. There are however effective solutions available including peer-to-peer lending to help the UK to overcome the financial crash.

What’s interesting is that solutions to the funding crisis are often aimed at particular niches. We’ve seen niche alternative funding platforms set up specifically to fund everything from property developments to renewable energy projects.

However, for a number of reasons we think the distinction between different categories of loans isn’t always necessary.

Let’s look at an example:

  • We recently funded the development of a wind farm in Cornwall with £460,000, which will generate a government backed, index-linked income stream.
  • It’s a loan; it’s like many others we’ve done before in the renewable energy sector; and it’s like many others we’ve done for a plethora of businesses in many other sectors.
  • With that in mind, the security is very similar too - a first legal charge over site and asset, and assignment of income generated.

This isn’t the first renewable energy or social business we’ve helped, and it won’t be the last. In just one year, we’ve lent more than £6.5m to these types of businesses - more than many (maybe any) of the platforms set up only to fund renewable energy projects.

So, this brings us to the bigger question…

Is ‘alternative finance’ really revolutionising finance?

A loan, no matter how it is obtained, is a loan; borrowers need funds, and lenders want to make their money earn more.

Lending and borrowing is an ancient art, but an art that has become more abstract and far removed from its fundamentals as the years have passed.

As lending has pushed at the boundaries of ethics and even reality, huge shocks have emerged, most notably the crash that began in 2008.

To this day, the banks remain embroiled in turbulence. Scandal after scandal comes to the surface and it’s hard to anticipate when we will hear the end of them.

Returning lending to its roots

This is why it is so important that lending returns to its roots, with peer-to-peer lending stripping away the gearing, fierce sales tactics and confusing products.

When done properly, lending money is straightforward. Although getting your money back takes skill and diligence, it’s something that the man on the street is capable of understanding.

Increasing numbers of Britons are realising this and taking ownership of their money, rather than entrusting it to faceless businesses who then allocate their money according to algorithms.

They’re now earning healthy rates of interest by lending directly to UK businesses and individuals. This is a great thing, and not something we should overlook. It’s extraordinarily exciting and something I’m thrilled to be a part of.

That being said, I don’t for one second think the job is done; when lender numbers hit one million, then we can start to relax.

As more people understand that loans shouldn’t be complicated, things continue to change.

- September 23, 2014

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