Assetz Capital exceeds half a billion in lending

By Bridging Loan Directory 31st May 2018

Peer-to-peer lender Assetz Capital has lent more than £500m to SMEs and property developers, as appetite for alternative forms of finance continues to rise.

Since launching in 2013, the firm has achieved outstanding levels of growth. Lending has doubled in each of the last two years, with more than £200m lent in 2017 alone. This trend has continued into the new year, with in excess of £100m already lent in the first four months of 2018.

Assetz Capital has been particularly active in the development finance space, with half of all lending being used to fund building projects, and with the majority of that being for housing. The firm has helped to finance more than 1,700 new homes in the UK so far. Recent highlights include completing £4.2m for RAA Developments’ for use in the development of 12 London homes, and completing a £3.4m loan for Pillar Holdings, for use in the development of 14 apartments in Derbyshire. Typically, the firm provides loans between £100k to £7.5m, with a range of products including commercial mortgages, bridging loans, SME term loans and business buy-to-let loans for landlords. Assetz recently expanded its product offering by launching a new loan to help professional landlords and property developers refurbish residential properties across the UK.

The UK peer-to-peer sector has grown rapidly in recent years, as small and medium sized enterprises and property developers turn to alternative lenders to access growth and project finance. The British Business Bank’s 2018 Small Business Finance Markets report has revealed that the UK’s small businesses are diversifying in their choice of finance, with peer-to-peer business lending up 51% in 2017, in contrast to bank lending volumes, which remained relatively flat.

Stuart Law, pictured, Chief Executive at Assetz Capital, commented:

“We have seen truly remarkable growth in the peer-to-peer sector. Following the financial crash, the availability of bank loans to small to medium businesses has reduced significantly, from around £200bn down to around £165bn. Peer-to-peer funding has been a real lifeline for growing businesses, by providing flexible, secured loans to help plug this gap alongside the rest of the alternative finance industry.

“With the renewed governmental focus on housebuilding across the UK, driven in part by our new housing minister, we expect to see a further rise in demand for development finance. In particular, city centres and prime commuter belts across the UK look set to be development hotspots, so we expect our strong pipeline of activity to continue.”