Assetz Capital has received a £15m commitment in funding from British Business Investments (BBI), a commercial subsidiary of the government-funded British Business Bank.
The funding will be used for development finance loans and SME commercial mortgages originated by the platform to support in excess of £100m of new lending to smaller businesses and smaller housing developers.
It is the first time a property-backed marketplace lender has received BBB funding.
“Assetz Capital was founded to help resolve the housing crisis and create a fairer lending landscape by providing funding to SMEs and property developers who were no longer being fully supported by traditional banks,” said Stuart Law (pictured), chief executive of Assetz Capital.
“To date, we’ve lent more than £1bn to UK businesses, providing over £100m of much needed gross income to a community of 38,000 retail and institutional investors in the process.
“The support of BBI is a further milestone in this mission, and we are grateful for their new backing towards our continuing commitment to addressing the housing crisis and SME funding gap.
“It’s a testament to the impact that can be delivered by Assetz Capital and a welcome addition to our growing stream of institutional funding sources including other banks and investment funds.”
“This £15m commitment to Assetz Capital supports British Business Investments’ objective to increase the diversity and supply of finance for smaller businesses across the UK,” said Catherine Lewis La Torre, chief executive of BBI.
“By providing finance to smaller housebuilders, we’re able to help them to fulfil their growth plans and increase the country’s new housing stock.”
Since being founded in 2013, Assetz Capital has lent more than £1bn to smaller businesses and housebuilders and has funded the development of 4,846 homes across the UK.