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Assetz Capital passes GBP200m in lending

Peer-to-peer platform Assetz Capital has lent GBP200 million since launching in 2013. 

The alternative finance platform helps small and medium-sized British businesses and property developers acquire funding and is now providing secured loans totalling as much as GBP26 million per month and lent over GBP45 million in the last quarter of 2016. 
 
The milestone caps a record year for Assetz Capital, in which over GBP108 million was lent in 2016, earning investors a total of GBP17 million of interest since the business launched. More than GBP500 million is now available and ready to lend through the platform to credit-worthy businesses. According to independent data table AltFi.com, Assetz Capital is now the third largest peer-to-peer business lender in the UK.
 
Stuart Law, CEO of Assetz Capital, says: “Assetz Capital’s growth has been exponential over the past year as a result of the funding shortage for SMEs and the low interest rates on offer from banks and the fact that we’ve lent an incredible GBP108 million last year is credit to our hard-working and experienced team. Another core reason to our success is our business model, which ensures all loans are backed up by property or other tangible assets. We believe that secured loans are the best investment model for our lenders and they allow us to achieve stable growth whilst keeping losses to a minimum.”
 
Assetz Capital has a default rate of 6 per cent but losses are running at just 0.8 per cent.
 
Confidence is growing in the peer-to-peer sector, as more investors look for higher risk-adjusted returns in a time of low interest rates and more borrowers see the advantages of dealing with peer-to-peer lenders.
 
In August 2016 independent analysts Defaqto assessed the sector. Assetz Capital was one of only five platforms to achieve a 5-Star Defaqto rating in the first "Loan Based crowd funding" category.
  
Law says: “We are delighted with the success we’ve had to date. GBP200 million lent in a few short years is no mean feat but in such a fast growing sector we have our sets set even higher in 2017. With around one quarter of all our lending to date being carried out just in quarter four of last year it’s going to be a big and important year for both Assetz Capital and the wider P2P sector.”

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