Bridging tops uses for asset-based loans

Bridging tops uses for asset-based loans




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Property-related loan applications have risen by 183 per cent in the last year, according to the latest announcement from the UK’s most prolific asset-based lender borro.


borro recorded almost double the number of applications to fund property-related causes from 2011 to 2012, with the average loan amount for such uses currently standing at £19,500. 


The top three property-related uses for the loans borro provide are:


• Funding property development and redecoration e.g. building an extension or conservatory


• Covering the costs of owning a rental or second property either while unoccupied or before a sale


• Bridging


The news comes after borro announced that it has secured two further lending facilities in the UK and globally.


It has obtained $26 million from its latest investment round from firms including Ribbit Capital, Augmentum Capital, Eden Ventures and Rockridge.


More recently, borro secured a £20 million facility provided by UK investors Octopus Investments.


Speaking about the recent rise in applications Paul Aitken, CEO of borro, said: “With property-related applications continuing to increase, it is clear that people are still finding it hard to secure loans from traditional sources of finance. Others may be finding the stagnant property market continues to work against them. 


“Our clients are turning to their existing assets as collateral for loans: in the past a borro customer secured a £50,000 loan against a Henry Moore sculpture in order to complete a property deal, and another customer took out a £40,000 loan against a pair of Cartier earrings to start their own business buying and selling property.”


Paul added: “Brits are realising that they have collected an array of valuable personal assets they can use to raise funds without lengthy bank processes. The vast majority of our customers redeem their assets demonstrating the risk-free and efficient service we provide.”


 

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