Stuart Law, Assetz Capital

Assetz Capital secures extra £25m from British Business Investments

British Business Investments (BBI), a commercial subsidiary of the British Business Bank, has committed an additional £25m to Assetz Capital.

The further funding will enable the marketplace lender to deliver loans to SMEs under CBILS, and adds to the initial £15m commitment back in March.

For Assetz Capital’s CBILS lending, Nordic finance provider Aros Kapital is also participating and will be increasing its existing commitment.

As an accredited CBILS lender, Assetz Capital is delivering commercial mortgages and property development loans to eligible SMEs and housebuilders under the scheme.

“We are pleased to have secured this additional funding commitment from BBI which will make a real difference to smaller housebuilders and SMEs across the UK,” said Stuart Law, CEO at Assetz Capital (pictured above).

“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.”

He added that the role of alternative finance in supporting businesses and jobs has “never been more critical”.

“Rishi Sunak and the British Business Bank’s support for SMEs through backing of the alternative finance industry has been incredibly important.

“The rollout of CBILS-approved lending beyond the big banks into the established alternative lenders like ourselves is a game changer for the breadth of economic support the country can receive in this and future crises.”

The £25m commitment from British Business Investments for this CBILS-focused strategy will help the specialist lender fund property secured loans to SMEs that require financial support due to the coronavirus pandemic.

The existing £15m funding from British Business Investments has already contributed to supporting in excess of £85m of new lending to smaller businesses, including helping to fund the development of nearly 600 new homes across the UK by SME housebuilders.

“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,” commented Judith Hartley, CEO at British Business Investments.

“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, while also providing much needed support to smaller housebuilders who have been impacted by the current crisis.”

Assetz Capital has lent over £1bn since its inception in 2013.

Leave a comment