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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.

Funds to accelerate peer-to-peer lending growth in 2016

Funds to accelerate peer-to-peer lending growth in 2016

Stuart Law, founder and CEO of Assetz Capital, one of the UK’s fastest-growing peer-to-peer lending platforms, commented on today’s alternative finance Nesta report:

“The slight slowing of the alternative finance market in 2015 – despite increasing in lending volumes month-on-month – was to be expected. It was the year when many platforms took stock, and prepared for the next push. The figures are comparable to what we have experienced and if that continues, we anticipate a giant leap for the sector in 2016.

“The £3.2 billion already lent is an incredible achievement by the sector, but the agreements put in place with funds and financial institutions by a number of key platforms in 2015 will take effect in the coming 12 months. Thanks to two fund agreements, Assetz Capital is currently deploying more than half-a-billion pounds in funding lines for growth stage UK SMEs. This is just the beginning. We’re receiving more than £100 million of enquiries every month, which we expect to see increase to £250 million.”

Mr Law continued: “As the Nesta report highlights, just 20,000 SMEs benefited from alternative finance in 2015. When you consider that there are in excess of four million SMEs in Britain, and that peer to peer lending is currently only 3.4% of all SME lending, there is a very long way to go in terms of awareness and uptake. After the past year of planning and preparation, Assetz Capital is ready and able to lend hundreds of millions to strong, UK SMEs to benefit them and the UK economy so 2016 is set to sent peer-to-peer lending into the stratosphere.”

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 – From three months to 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.
Property term loans – Medium term finance for residential (including buy to let loans) and let commercial properties.
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 currently 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 reached within 20 hours of launch. It has since been increased and is expected to have attracted approaching £30m of lender capital by the end of the first quarter of 2016.

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.”

 

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.

- February 17, 2016

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