Ablrate, a UK peer-to-peer lending platform that offers investors access to asset-backed loans against aircraft transactions, has announced a partnership with The Just Loans Group PLC to provide commercial property-backed investment options on the Ablrate platform.
“This collaboration represents a fantastic way for Ablrate’s investor community to grow and be presented with a wide range of lending options,” commented David Bradley-Ward, CEO of Ablrate. “The Just Loans Group PLC brings a high quality, asset-backed lending proposition that complements our existing niche offering, allowing investors on our platform added value.””
The Just Loans Group PLC offers UK businesses an alternative to traditional banks’ lending facilities. The company’s expertise in underwriting has created a loan book of over £10m during the course of its first 18 months of operations, with zero capital losses across more than 200 transactions totalling £12.8m.
“This innovative partnership with Ablrate will help provide UK businesses with the what they urgently need – early funding to help them grow and a relationship that will help them establish a good credit record,” observed John Davies, Director, The Just Loans Group PLC.
The Just Loans Group PLC’s loan facility arrangement with Ablrate is for up to £10m, with an initial tranche of £500,000. The arrangement will leverage the firm’s underwriting experience and allow Ablrate’s investors to tap into other sources of lending thereby diversifying their investment options.
This partnership comes at a time when the alternative finance market is predicted to double in size in 2015, reaching an impressive £4.4bn, according to Nesta. Last year bank lending to small and medium-sized enterprises (SMEs) in the UK was down by £400m, a gap that the UK alternative finance market filled, providing financing to over 7,000 SMEs, or the equivalent to 2.4% of all bank lending to SMEs.