Assetz Capital is a new player in the peer-to-peer lending market and has funded almost £3 million worth of loans since launching at the beginning of this year. Where Assetz Capital differs from other peer-to-peer lenders is having a careful eye for risk assessment – proper asset security is taken against loans, which helps lenders to protect themselves against potential future losses. Run by experienced bankers, Assetz Capital is able to tailor loans to the borrower with interest only periods, bullet repayments and longer amortisation terms.
With an average loan size of £100,000, Assetz Capital started by writing the single largest peer-to-peer property development loan, a £1.5 million loan to develop a student accommodation project in Nottingham. Assetz Capital is a principal lender of non-bank loans to SMEs, property developers and buy-to-let investors who are seeking funding for their projects to grow their businesses.
Steve Harris, Director of Central Finance, has provided a number of loan opportunities to Assetz Capital and commented: “We have been able to source finance for clients where other lenders have previously not seen the benefits of the deal, or appreciated what a good business they have seen. Central Finance chose Assetz as they provided a distinctive way of providing funding to SMEs.”
Paul Huckstepp, Director of Mail Order Online, had trouble acquiring finance from the banks as they required him to supply three years of accounts and their first year did not show enough retained profit despite having a turnover of £1.3 million by February 2012. Assetz Capital helped provide Mail Order Online with a short-term loan of £180,000.
Assetz Capital took security of first legal charge on an unencumbered property valued at £285,000 over the £180,000 loan. The Assetz Capital core principle of offering the correct asset security for lenders meant the draw down for this loan was complete within less than 48 hours and Mail Order Online received the cash flow they needed for their business.
Paul Huckstepp explained: “We knew we could generate the sales of the stock ordered based on our previous years trading and the run rates on the products. The bank wouldn’t help us and Assetz Capital found us the solution – we got the finance we needed over a short period of time.”
Assetz Capital takes tangible asset security against each and every loan, understanding the value of that security and also the problems that may arise in releasing the value of it.
Visit www.assetzcapital.co.uk to register as a broker or to register as a lender – or alternatively contact us on 020 7870 1023.
By Catherine Fuller, Assetz Capital