Assetz Capital seals deal with Nordic finance provider to fund CBILS
Assetz Capital has signed a funding deal with Nordic financing provider Aros Kapital.
Under the agreement, Aros Kapital will fund coronavirus business interruption loan scheme (CBILS) loans through the platform and will continue funding other requests once the scheme ends.
CBILS is currently being offered to Assetz Capital borrowers seeking commercial mortgages and property development loans.
Read more: Assetz offers ‘home’ for RateSetter lenders
Read more: Institutional funding drought hits CBILS participation
“Unlike banks, who can fund their CBILS and bounce back loans cheaply through the Bank of England, many alternative finance providers have not been able to begin lending due to the lack of existing institutional funding relationships and also lack of track record or scale,” Stuart Law (pictured), chief executive of Assetz Capital, said.
“These are not problems that we have encountered to the same degree, and whilst our cost of capital is a lot higher than a bank, we have an important place in the small – and medium-sized enterprise (SME) lending market for those not complying with simple high street banking requirements.
“Our track record and £1bn scale of lending to date have attracted a range of institutional funders to fund alongside retail investors.”
Gustav Rocklinger, chief executive of Aros Kapital, said Assetz was an“ideal long-term partner” to help it enter the UK market.
Read more: What’s going on at Assetz Capital?
