Assetz Capital announced on Monday it received a 5 Star Rating from Defaqto in the independent financial information business’ first “Loan Based Crowdfunding” analysis. The UK-based lender is considered one of only four peer-to-peer finance platforms to have achieved the highest rating awarded by Defaqto.
According to Assetz Capital, Defaqto’s 5-star rating is given to the platform from an investor’s point of view and is based on an overall product DNA scoring methodology. Defaqto created a core criteria that each lender must meet to receive the 5-star rating, which are the following:
- Capital is at risk and is not protected by FSCS
- Past performance does not guarantee the future
- Annualized projected return quoted after expected losses
- Why returns vary (i.e. access / risk / security etc.)
- Historic and projected default rates
Stuart Law, chief executive of Assetz Capital, stated:
“Being among only a handful of peer-to-peer platforms to be awarded a Defaqto 5 Star Rating further validates that our investment model offers investors a proven, successful and independently verified platform.”
Law continued:
“Our approach of employing a world-class credit underwriting team and taking validated and realisable security is essential for our investors’ peace of mind and security of returns. Our complete focus is ensuring the growth and security of our lenders investments, as well as the success of our borrowers’ businesses. Investors throughout the UK are now realising that peer-to-peer finance is a viable option for their investment portfolio. The Defaqto 5 Star Rating further cements our status as one of the few key investment platforms within a growing sector which is clearly gaining significant momentum in a low interest rate environment.”
Zahid Bilgrami, CEO of Defaqto, added:
“Star Ratings assess the quality and comprehensiveness of the features and benefits of financial products such as insurance and protection policies, current accounts, credit cards and investment products offer.”
Since its inception in March 2013, more than 14,000 investors have registered through the Assetz Capital platform to lend over £130 million to credit-worthy UK businesses.