Peer to peer lender Funding Empire has announced a new, asset backed product in collaboration with The Business Lending Exchange (BLX). The announcement was described as the “first product” in regards to the strategic relationship between Funding Empire and BLX. The new products are available as of tomorrow (March 24th). As part of the agreement Parag Patel, Managing Director of Funding Empire, will join the BLX Board
“This is the first step in an ambitious plan to deliver a number of different peer-to-peer investment products that we have designed to cater for all kinds of investors and their varying risk profiles.”
“Asset finance offers funding for businesses and is a long established traditional finance product backed by tangible security. In this new model our lenders will receive monthly capital and interest repayments, unlike many other asset backed lending repayment structures that defer payment of capital and sometimes also interest, until the end of the loan term.”
“We have had huge demand for a non-property based, asset backed product that provides monthly income – and we’ve responded to that demand.”
These new asset backed loan investments are said to be backed by realisable security and go through BLX’s credit assessment process. The collaboration will leverage the BLX team’s 30 years’ experience in the asset finance sector, combined with Funding Empire’s technology, scalability and agility.
John Stickley, Chairman of BLX, said of the partnership;
“Through our collaborative venture, many more small business owners and entrepreneurs will be able to develop their businesses, employ more people and thus further strengthen the UK economy.
“I am sure this will provide even more opportunities for investors to make a good return on their capital, while at the same time being able to help SMEs raise desperately needed, asset backed working capital.”
Funding Empire has originated over £119 million in loans to date.