Our friends at Crowdfundinsider report on the jump in asset-backed finance in the UK. Here's an extended excerpt:
"Alternative finance using asset-backed lending has hit a record high of £4.3 billion – up 22% versus year prior.Total asset-based finance hits £20.7 billion, another all-time high, as the Government Bank Referral Scheme kicks in. Nine of the UK's biggest banks will be required to pass on the details of businesses who they are not able to support onto three platforms where 'alternative' sources of finance can be offered, including asset-based finance.
These numbers were released by the Asset Based Finance Association (ABFA), the body representing the invoice finance and asset based lending industry in the UK and the Republic of Ireland. It says that this form of alternative finance is playing an important role in filling the funding gap for UK businesses. It offers businesses the opportunity to diversify their sources of finance away from more traditional loans and overdrafts."
Our latest loan from webuyanyhome.com is part of that asset-backed uptick. Launched just last week, the loan is already 38 per cent filled. Below we offer an extended excerpt of the information available to registered lenders. Please note that we have used our best endeavours to ensure that the information is accurate, but we do not warrant that this is so.
"Our service is tailored to make the process of selling homes easy and simple. When a vendor contacts us, we look to make an offer within 24 hours. If the offer is accepted, we aim to complete within 7-14 days. On average, properties are bought for 80% of the market value and we then hope to sell them for 95% of the market value within 90 days. Vendors pay no commission and we cover their legal costs.
"The financing arm of the company was started three years ago. In the 12 months to May 2015, we made a profit before interest and tax. We then changed the year end to December and we made additional profits in the 7 months to December 2015. We expect to increase profits further in the current financial year."
Crowdfunding & Risk
To learn more about the basics of crowdfunding and peer-to-peer (P2P) business lending, visit our Knowledge Hub. There are also explanatory videos on site. Remember, when you loan capital, it is at risk. Please read the warnings and explanations on site before committing your capital.