Manchester-based Assetz Capital has become the first property-focused marketplace platform to receive funding from British Business Investments (BBI), a commercial subsidiary of the British Business Bank.
The £15m commitment from British Business Investments will support in excess of £100m of new lending to smaller businesses and smaller housing developers, helping them grow, as well as helping fuel the development of new homes across the UK.
The funding will be used for development finance loans and SME commercial mortgages originated by Assetz Capital.
Stuart Law, Assetz Capital CEO, said: “Assetz Capital was founded to help resolve the housing crisis and create a fairer lending landscape by providing funding to SMEs and property developers who were no longer being fully supported by traditional banks.
“To date, we’ve lent more than £1bn to UK businesses, providing over £100m of much-needed gross income to a community of 38,000 retail and institutional investors in the process.
“The support of British Business Investments is a further milestone in this mission, and we are grateful for their new backing towards our continuing commitment to addressing the housing crisis and SME funding gap.”
He added: “It’s a testament to the impact that can be delivered by Assetz Capital and a welcome addition to our growing stream of institutional funding sources, including other banks and investment funds.”
Catherine Lewis La Torre, British Business Investments CEO, said: “This £15m commitment to Assetz Capital supports British Business Investments’ objective to increase the diversity and supply of finance for smaller businesses across the UK.
“By providing finance to smaller housebuilders, we’re able to help them to fulfil their growth plans and increase the country’s new housing stock.”
Since being founded as a FinTech start-up in 2013, Assetz Capital has lent more than £1bn to smaller businesses and housebuilders, becoming one of the UK’s largest marketplace lenders in the process. It has funded the development of 4,846 homes across the UK.
In addition to funding housing developments, Assetz Capital funds care home construction, purpose-built student accommodation and provides commercial mortgages across a broad range of businesses – all with property as security for the loan.
By Neil Hodgson
Source: The Business Desk