MORE than a quarter of loans made through Assetz Capital end up on its aftermarket, the platform has reported.
The secured business and property peer-to-peer lender revealed that 28 per cent of loans have been traded on the secondary market since the platform’s launch in 2013, underlying the importance of having liquidity in the system.
Figures from the provider show £300m has been traded on the secondary market in the past four years, and another £400m has been redeemed by investors using Assetz Capital’s easy access accounts.
“We’re proud to be one of the few P2P lenders to have such an active secondary market which is vital as our nascent industry continues to grow and mature,” said chief executive Stuart Law (pictured).
“It is both important for investors to know that when they invest they are potentially holding loan investments to term, from one to five years typically, but at the same time, we think investors need sensible and low costs of accessing their capital early if necessary, subject to other lenders wanting to buy their loans.
“We have enabled this to a great scale and continue to charge zero fees on such access or aftermarket trades.”
Assetz Capital gained full authorisation from the Financial Conduct Authority last month and is planning to launch its Innovative Finance ISA during the fourth quarter of 2017.