UK-based peer-to-peer lending platform Assetz Capital has successfully surpassed £1.8 million through its equity crowdfunding campaign on Seedrs. The funding round was launched in May and quickly raised its initial £1 million. So far, more than 1,000 investors have contributed to the initiative.
As previously reported on Crowdfund Insider, Assetz Capital is a provider of alternative funding sources to SMEs and Property Developers and is one of the fastest-growing peer-to-peer lenders in the UK. The lender provides loans to SMEs and property developers in the UK, funded by both individuals and increasing numbers of institutional investors, companies and even banks who come through Assetz Capital for origination of loan investments. Assetz Capital is authorized and regulated by the FCA.
“Our P2P loan investments allow investors to earn a return on their capital, with over 30,000 lenders now able to invest in our investment accounts, having funded over £750 million of facilities and earned £70 million to date. Now that we are well established, our aim is to create the foremost Lending-as-a-Service marketplace for property-secured UK SME lending and to be a substantial part of the solution for the banking, investment, housing and pensions challenges that the country faces… helping to create Banking 2.0.”
Assetz Capital also noted:
“We see traditional banks as providing the ‘foundation’ capital to SME businesses in the UK, keeping the machine of the economy turning, with alternative finance such as ourselves providing the ‘growth’ capital required for GDP and employment to grow. We are now a meaningful contributor to that funding having in the 12 months to June 2018 provided an astounding new net lending equivalent to circa 40% of the £348m new net lending (increase in the size of the current loan book) to SMEs by the UK banks in that period (source: Bank of England). Bank net lending year on year has since fallen to zero as at December 2018.”
Funds from the Seedrs campaign will be used for the following:
- To secure new institutional funding facilities and fund those set up costs. These are additional loan funding facilities that will become significant long-term sources of funding for our lending.
- Further substantial investment in the technology team and resources to accelerate on-boarding of new Lending-as-a-Service partners and other strategic software project initiatives.
- Permitting advanced cashflow funding of some investor loan losses and recovery costs, where we also have a reasonable expectation of later recovery from security and legal action, in order to improve the investor experience and also treat customers fairly.
- Launch a new line of smaller, mass market secured lending products: suited to the large marketplace of mainstream commercial mortgages and residential property refurbishment loans sourced through national brokers and distributors.
- Support the marketing costs for continued retail and business funding acquisition, as well as borrower loan origination. This is in the form of promotional costs, transactional costs for relationships with introducers and other financial platforms and advertising.
- Working capital to support the enlarged company scale.
The campaign is set to close this month.
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