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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.

SMEs are being funded again

SMEs are being funded again

 

If it is, the turnaround isn’t down to traditional financial institutions relaxing their criteria, or a change in their approach to lending. It’s because the channels of potential funding have expanded- primarily through peer-to-peer platforms.

 

The growth curve of peer-to-peer lending has been significant in the past few years, but as the report from Albion Ventures highlights, SMEs are only just beginning to benefit.

 

Having only been dreamt up five years ago, it’s no wonder that a huge proportion of SMEs in the UK still haven’t heard of peer-to-peer lending. And those that have often don’t fully understand why it’s relevant and how they can benefit from the fastest growing innovation in the financial sector.

 

But that is changing thanks to the high billing given to peer-to-peer by some key national newspapers, including the Financial Times, the Daily Telegraph and the Times. Of course, vital SME-specific titles are playing their part too.

 

According to Albion Ventures’ third Albion Growth Report, the number of small businesses being approved for finance has risen from 27% in 2014 to 44% in 2015.The survey went on to reveal that 29% of those seeking finance were doing so to invest in new equipment, while a quarter (24%) were doing so to invest in new products and services.

 

The number of firms using traditional finance - such as bank loans and overdrafts - has fallen dramatically, from 76% in 2013 to 49% in 2015. From what Assetz Capital is seeing from the peer-to-peer lending growth curve, a huge proportion are now flourishing thanks to the sector.

 

Peer-to-peer borrowing for business is thriving. And it’s easy to see why: it’s mainly to do with the bespoke and tailored approach taken by platforms such as Assetz Capital, which means that businesses don’t need to fit into a ‘box’. In fact, we don’t have any boxes, so it’s a case of truly taking the time to understand a business and what the finance is required for.

 

Having regional directors to do this job means that there is a face to Assetz Capital. Each business that borrows from Assetz Capital’s lenders has a person to deal with and speak to. They’re experts at what they do, with an average experience of more than 20 years each.

 

In reality, it’s mainly about time. Even if your business is accepted by a bank for funding, it can take months to have capital in your accounts and therefore available to deploy as desired - not ideal for seasonal businesses. Assetz Capital isn’t like that, and if the agreements and terms are reached, money can be transferred in a matter of days. This is a significant benefit to SMEs and one of the main reasons for the growing interest in peer-to-peer borrowing.

 

Patrick Reeve, Managing Partner at Albion Ventures, commented: “It is a hugely optimistic climate, and we should be encouraged by the revelation that such a high percentage of firms are looking to raise finance to grow and innovate.”

 

But the job isn’t complete and many SMEs across the UK are still struggling to access much-needed funds. Click here to learn more about the products 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 the borrower is unable to repay their loan. At Assetz Capital, we seek to reduce this risk to our investors by taking asset security on every loan.

- March 9, 2016

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