Assetz Capital lent £1bn in February and has repaid £120m in withdrawals over the last 12 months.
Stuart Law (pictured), chief executive of Assetz Capital, said the platform has paid £120m in withdrawals to lenders over the last 12 months, which is faster than waiting for normal withdrawals from its loans since the average loan term is two years.
Law said significant amounts have been taken out and reinvested in by lenders testing whether they can get their money out.
He added that as Assetz Capital continues to lend at its current pace, within a year or so the platform would have returned £1bn to lenders.
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“The average term of the loanbook is two years or so, so this is a pretty good outcome in a year, it’s faster than underlying loans,” Law said.
“It’s a great outcome for lenders, it’s far better than waiting for every underlying loan to repay. We always said we wouldn’t provide perfect liquidity in bad conditions and that’s what the last year was.
“We delivered what it said on the tin, paying healthy interest all the way through. We’ve paid out £120m in cash in the last 12 months but significant amounts have gone and come back again, it’s quite common for investors to see if they can get their money out and put it in again.”
Law said Assetz Capital would like to be accredited to the recovery loan scheme straight away when it launches on 6 April.
The 80 per cent state-backed scheme was announced by Chancellor Rishi Sunak in his 2021 Budget to replace the previous emergency support programmes which ended on 31 March.
“We’re hopeful we will get confirmation next week,” he said.
“We’d like to be accredited straight away, we applied in the timeline required but we don’t know until we get the nod.
“We’re hopeful and are certainly expecting to get accredited and it might be next week. It’s a lot of work for the British Business Bank in a short timeframe, they have been incredibly busy.”