By Aisling Finn on Wednesday 28 October 2020
To-date, British Business Investments has given Assetz Capital £40m in fresh capital.
Assetz Capital has said it will use the funding to continue to deliver Coronavirus Business Interruption Loan Scheme (CBILS) loans.
The recent lot of funding follows on from a £15m injection of cash from British Business Investments that the alterative lender received back in March of this year just before the Covid-19 pandemic had fully taken hold of the country.
Stuart Law, CEO of Assetz Capital, said: “The institutional funding lines that we’ve put in place to deliver CBILS, and beyond, are significant, and is an indication of our ambitions to scale up lending to sustainable businesses, even through this difficult period.”
“The future of the country depends upon the majority of our nation’s businesses surviving the COVID-19 impact and hence protecting the bulk of the UK’s employment. SMEs employ 60% of all private sector workers and the role of alternative finance in supporting those businesses and jobs has never been more critical.”
Throughout the pandemic, Assetz Capital has been providing SMEs and housebuilders with commercial mortgages and property development loans through the government-backed scheme.
Judith Hartley, CEO of British Business Investments, said: “It’s great to hear that the initial £15m commitment from British Business Investments has already supported the development of 600 new homes across the UK.”
“This additional commitment of £25m to Assetz Capital supports our objective to increase the diversity and supply of finance for smaller businesses across the UK, whilst also providing much-needed support to smaller housebuilders who have been impacted by the current crisis.”
Since it was founded back in 2013, Assetz Capital has lent over £1bn, with the alternative lender hoping to lend its next billion by the end of 2022, and reopened its retail lending just over a month ago, marking the occasion with a £1m residential bridging loan.