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Assetz Capital to boost lending to Developers

Property & Finance News – The lender of choice for property developers Assetz Capital is to boost lending amounts and its funding levels for UK property developers, through its property secured lending facilities.

Although Assetz Capital initially began life as peer-to-peer lender back in 2012, the business has gone from strength to strength and its recent news, to offer up to 70 per cent of the loan to gross development value will no doubt provide house builders, property developers and the supporting industries from concrete, glazing, electrical and contracts kitchens suppliers with an increased level of financial support from the outset.

The availability of lending in the property sector has fallen since Covid and the Truss mini budget and mainstream lending to smaller SME developers is often not on the most favourable of terms, but Assetz Capital’s ability to support developers and its proactive approach to asset security has seen the commercial finance grow from a smaller peer-to-peer lender, to a finance business that is currently funding one in twelve new build homes throughout UK.

Assetz Capital eyes £2bn Funding Milestone

In what the business describes as its next milestone, the bid by Assetz Capital to boost lending to developers to £2bn by 2027 may seem overly ambitious but when you factor in that the company has lent over £400m alone, through its partner Aros Capital since 2020, then the £2bn milestone seems less ambitious and more assured.

Stuart Law, CEO and co-founder of Assetz Capital said: “We’re proud to continue our successful collaboration with Aros Kapital, which has been instrumental in supporting our mission to provide fairer growth capital for Britain’s SMEs.

“As we approach the £2bn lent milestone, we are confident that our platform will further accelerate the delivery of much-needed funding to the UK’s vital industries and regions, creating jobs, homes, and wealth along the way.”

Gustav Röcklinger, CEO at Aros Kapital, comments: “Given the huge amount of untapped potential currently in the UK’s SME housebuilder market, we have a clear vision and ambitious plans to continue working with Assetz Capital to drive forward lending activity over the coming years.”

Including Aros Capital, Assetz Capital now has active funding partnerships with five key organisations, providing the firm with deep funding lines to continue growing as a business and offer much needed property secured lending facilities, commercial mortgages and bridging finance to its client base.

On the recent news to increase support and offer larger day one advances to developers across England, Scotland, Wales and Northern Ireland, Andrew Fraser, chief commercial officer at Assetz Capital, said: “At Assetz, having lent over £1.7bn, funding 1 in 12 new build homes throughout UK, we understand that initial funding through a larger cash advance is crucial to the success of development projects.

“Our enhanced offer demonstrates our commitment to supporting developers with the financial resources they need from day one, allowing greater certainty around cashflow. Affordable, reliable and fast funding is what our clients want.”  

“This enhancement will provide significant value to our developer clients, helping them manage supply chain and ensuring they remain as liquid as possible.” 

Assetz Capital to boost lending to developers

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