Assetz Capital has hit the milestone of lending over £50 million to UK SMEs and property developers.
Since the start of 2014, Assetz Capital’s lending volumes have risen by around 15% each month on average. The platform maintains high growth expectations – projecting that it will hit about £100 million of lending by the end of 2014 and will have exceeded £300 million by the end of 2015.
“This level of growth is in line with our expectations, and we’re really pleased to have been able to achieve this milestone using solely retail investor funding to date – a rarity in today’s market where institutional money is also keen to benefit from our high quality loan origination and healthy interest rates.
“The growth in lending volumes and investor numbers reflects the fact that P2P lending is increasingly attracting a retail audience – ordinary investors who are disillusioned with the low rates they’d get elsewhere. As the lending process becomes simpler and less time-consuming, we believe that investors will take advantage of P2P in even greater numbers.”
Assetz is also hoping to boost its growth via a platform redesign, which makes the platform more accessible. Investors can now choose from several investment accounts, and they can opt to have their money invested automatically in peer-to-peer loans that match particular pre-specified criteria. Investors are still able handpick specific loans to invest in if they so choose.
Assetz is also looking to develop its buy-to-let mortgage offering – which launched in 2013. Assetz’ current underwriting model allows it to take on some of the industry’s largest loans. The platform developed this model so that investors who are willing to lend a significant amount can earn a fee by ‘underwriting’ a loan – guaranteeing the borrower the funds and releasing the loan for the retail investor to invest in once the loan has drawn down so that investors get an immediate return on their cash.
Assetz has projected £100 million by the end of 2014. The platform will need back-to-back £25 million months to close out the year if it is to live up to expectations.