UK-based peer-to-peer lending platform Assetz Capital completed its equity crowdfunding round on Seedrs with nearly £1.9 million in funding. The campaign was launched earlier and quickly raised its initial £1 million. It also drew in more than 1,000 investors during its run.
Assetz Capital is described as 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. The lender revealed in its campaign:
“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.”
Last month, Assetz Capital announced it surpassed both bridging and SME lending milestones. The online lender has provided more than £100 million in bridging finance and £50 million in SME funding. Damien Druce, Director of Intermediaries at Assetz Capital, revealed at the time:
“In recent years, alternative finance solutions have become more established and accessible for smaller businesses across the UK, acting as viable alternatives to bank loans. Bridging loans have increased in popularity due to their speedy execution and convenient interest payments, which are typically rolled up over term, rather than paid monthly. Likewise, SME loans hold benefits, including flexible offerings and interest payments that can improve cash flow and working capital for smaller organisations.”
Funds from the Seedrs round will be used to continue the growth and development of the Assetz Capital, including the following:
- 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.
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