Peer To Peer Lending Platform Aims to Treble Lending

This year, Assetz Capital plans to lend about one-third of a billion pounds as it seeks to launch its Innovative Finance Isa (IFIsa).

After lending £108m in 2016, the platform declared early this year that it had lent a total of £200m since 2013.

Stuart Law, co-founder and chief executive officer of Assetz Capital, specified to Bridging & Commercial that it had quite a few plans to help it attain its lending goals.

Expanding its regional branch network and considerably escalating its relationship director team to guarantee that most UK industries are within no more than a 1-hour drive, are among its plans.

“The regional support we provide to businesses has been highly successful in explaining how P2P finance works and meeting [the] bespoke funding needs of SME businesses,” Stuart said.Moreover, he stated that it’s a good means to engage with brokers who have become significant backers of peer-to-peer lending.

Regarding whether Assetz Capital would seek to work in new aspects of lending, Stuart complemented: “We already offer one of the fullest ranges of SME finance, including SME term loans, bridging, development finance, business BTL and renewable energy loans.” He also said other products remain under review and further details will be announced this year.

IFIsa will be a big help

Assetz Capital would stay dedicated to peer-to-peer lending for retail investors. The company is looking to consider other tactics so it could attract more investors this year.

“The IFIsa will help enormously, however, as Assetz already has a solid reputation in delivering returns built over the last four years, this helps to reassure investors and institutions,”according to Stuart.

As a sector, P2P platforms need to bring solid credit quality; those that don’t will vanish instantly, and those that do will continue to develop rapidly and gain more investors — this is what he believes.

New guidelines this year…

In 2016, the Financial Conduct Authority (FCA) confirmed it was considering the regulation of peer-to-peer lending platforms. Regulations will be imposed more strictly this year since the FCA knows the sector better. Stuart expects new guidelines but hopes these will not stifle the growth of the developing alternative finance industry. He ended his statement by expressing his expectations on having new entrants within the peer-to-peer lending industry.

“The time for general peer-to-peer start-ups was over in 2015.”

“However, we do expect to see some existing financial service businesses trying to bolt P2P on to their existing operations.”