Assetz Capital, the billion pound+ business lender – funding 1 in 12 new homes by SME House Builders, has raised 119% (£297,697) of its £250,003 target from 240 investor via Seedrs with 21 days left in the firm’s crowdfunding campaign (at the time of writing).
Located in Manchester, United Kingdom, Assetz Capital is focused on the Finance & Payments (Mixed Digital/Non-Digital, Mixed B2B/B2C) sectors. Incorporated in March 2012, Assetz Capital reports a Valuation (pre-money) of £83.1M.
The firm’s investment summary is as follows: Type Equity; Equity offered: 0.36%; Share price: £3.15; Tax relief: N/A.
Business highlights are as follows:
- c£1.5bn lent, £140m+ gross interest / 130 staff
- Funded 1 in 12 new SME homes in 2018, 2019 and 2021
- Property secured lender – development/bridging/commercial
- £1bn+ institutional funding lines & £100m’s of retail investment
Key features include: Secondary Market; Seedrs nominee min. £12.60 +.
As noted in the update, the financial system is “broken.” Businesses can’t “get the funding they need and investors can’t get a fair return on capital.” Assetz is now focused on “providing a solution to those problems.”
Their vision is “to be the most trusted financial services business, where investors intuitively come for an impactful and fairer return on their capital and businesses come for fairer, real-world lending.”
They’ve provided c£1.5bn of loans “to SME businesses and developers, financed by retail & institutional investors.”
With their brand, scale and 130 staff, they’ve “achieved critical mass and proven [their] model – having been profitable in the 17/18 & 20/21 financial years, and with EBITDA, minus exceptional funding costs, positive in 18/19 & 19/20.”
They’re at “a pivotal moment with the potential to become one of the dominant few in the multi million business lending market.”
Their first Impact Report, published at www.assetz.com, “shows the positive change that our investors have achieved to address challenges in society.”
Assetz Capital explains that they charge their business borrowers “an arrangement fee of typically 2-3% of the loan inclusive of any introducer commission that we pay out and we also charge the borrower a loan monitoring and servicing fee (typically 0.5-4% pa on the loan balance).” Direct business that does not come via a broker means they “have higher earnings and [they] are growing that part of the business actively.
As they attract more and more capital from investors and build their track record and loan book performance data, they expect their cost of capital continue “to lower, potentially both improving our margins and also tightening the rates at which we can potentially fund, making us both more competitive and profitable.”
Their product offering has “become considerably more attractive since before the pandemic with [their] broadening marketplace of funders meaning [they] can now offer loan sizes of £250k to £50m, well above our previous £10m maximum.”
They also have interest rates “starting from just 5.5%, well below prior rates.”
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