Average loan value to SMEs up 41 per cent in 2012
By Bridging Loan Directory -
borro’s average loan value to small business owners and the self-employed has risen from £17,000 to £24,000 in 2012
Loans to this group make up over 60 per cent of the personal asset lender’s loan book
Average loan term is five months
Following recent news that lending to SMEs has declined sharply over recent months and lending to non-financial businesses suffered a £1bn drop in September*, borro, the UK’s leading personal asset lender, continues to see an influx of small business owners and self-employed clients.
Examples from borro’s SME customer base include a small business owner who raised £27,000 against a five carat diamond ring in order to maximise a business opportunity. borro also lent £11,000 against a Mao print by Andy Warhol, to a small business owner looking to cover tax bills and £40,000 against a pair of Cartier diamond ear-studs, to a self-employed individual looking to fund a new business venture.
Paul Aitken, CEO and Founder of borro, commented:
“Securing finance remains one of the biggest challenges faced by the nation’s small business owners and entrepreneurs, with many still unable to access finance via traditional means. At borro, 60 per cent of our customer base consists of small business owners who use their personal assets to secure finance for a variety of reasons from facilitating a business transaction, to supporting an irregular income.
“The average loan value to small business owners and the self-employed has risen 41 per cent, from £17,000 to £24,000, since the beginning of 2012. The average loan term is five months, with prestige cars, fine art and antiques being the typical types of assets used as collateral. We are witnessing continued growth particularly when it comes lending to small business owners and the self-employed, proof that alternative forms of financing are becoming more mainstream.”
borro offers small business owners, entrepreneurs and all other customers short-term loans of £1,000 to £1,000,000. Loans are secured against assets including fine art, antiques, prestige cars, luxury watches, diamond jewellery, gold, fine wine and other high value assets. A transaction with borro is transparent, with all rates and processes made clear from the outset. There are no credit checks and loans can be redeemed at any time without penalty.