Assetz reports £10m of inflows since rate rise

INVESTORS have ploughed £10m into Assetz Capital in the month following the peer-to-peer lender’s first-ever rate rise.

Rates of return for the Quick Access Account and 30-Day Access Account increased from 3.75 per cent to 4.1 per cent and from 4.25 per cent to 5.1 per cent respectively, effective from 1 May.

The business lender said on Tuesday that the £10m investment was across both ISA and non-ISA accounts and has helped its tax wrapper approach £50m of investment in the first six months since its launch.

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Stuart Law (pictured), chief executive of Assetz Capital, said that the latest £10m of investment came from existing and new customers.

The average balance of its Access Accounts has grown month-on-month to a current level of around £23,000, he added.

“Borrower demand remains high, putting us in a strong position as we move towards the second half of the year – steadfast in our mission to boost the economy, and therefore jobs and GDP, through providing growth capital to SMEs and fair returns for investors,” he said.

Assetz Capital announced at the start of June that it has hit the £500m cumulative lending milestone, with recent funding driven by development finance.

Lending has doubled in each of the last two years, with more than £200m lent in 2017 alone, the platform said.