Recent email - investment in business

From: Assetz Capital <enquiries@assetzcapital.co.uk>
Sent: 04 May 2018 20:52
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*This is an investment in peer-to-peer loans - it is not a bank account.
Capital is at risk.

Dear ton,

I trust you have all had an enjoyable start to spring with the unusually warm weather following the previous big chill. As we start a new financial year, and most of you start a new tax year, it’s a good time to reflect on where we are.

Our Purpose
We recently hit an important milestone, with our investors having earned over £40 million of gross interest since we launched in 2013. But is that the only reason that we are all here, to help you to create fair interest on your capital?

Whilst it's certainly of primary importance to us to deliver you attractive net interest rates, there is a deeper question. Why is Assetz Capital here in the first place and why do you invest with us? What are we both achieving, and does it have any greater purpose than simply creating that return on your investment?

We are very clear on the answers to these questions. Both you, your capital and we are part of the overall wave of disruption that is looking to drive change for the better in financial services and help the alternative finance industry grow over time to take more and more market share from traditional banking and financial services. However, disruption for disruption's sake isn't sustainable. The real reason for the industry's growth is that alternative finance is delivering something fairer, more attractive and more transparent - and this is why it’s arguably having a much more positive impact than the legacy financial system.

Assetz Capital operates as a secured business lender and helps to fund growth in small and medium-sized businesses who can provide security for their loans. We have a personal view that this is far more 'productive' and helpful to the country than, for example, funding personal loans. However, what isn't clear to many observers is where we fit into the support that the country needs to keep its economy strong and vibrant, to support growth and innovation, to support house building and to help grow employment.

Our view is simple and supported by data from the Bank of England. We believe that the traditional banking sector is mainly providing, at most, no more than the 'foundation' capital that the country needs. This is the money that keeps businesses ticking along but is not enough to provide overall support for the country's economic growth. Even then, the capital that banks have deployed to fund businesses is sizeably reducing as the year’s progress. What was around £200bn of bank loans into small and medium sized businesses in the UK economy in 2011 has become just £165bn by the end of 2017. We feel that this large reduction in funding to businesses is holding back the growth in the economy and reducing GDP growth by reducing employment and investment.

On the other hand, alternative finance, of which we are a key component, provides the 'growth' capital for the country. All too often, growth companies that are lifting employment numbers, lifting investment, and generally helping grow the economy and GDP are the very companies that don't actually find finance easy to get from banks. Therefore they turn to alternative finance providers like ourselves. It is also why your capital isn't just earning a fair return but is also helping growing businesses that boost economic growth, GDP growth and jobs growth. You should be proud to be a part of that.
We're on a mission to help to make this change and to help alternative finance become a major part of the UK financial system. We have a long way still to go and so we would like to thank you again for your continued support.

Stuart Law
Assetz Capital, CEO
Head Office
Assetz Capital, Assetz House, Manchester Green, 335 Styal Road, Manchester, M22 5LW

London Office
Berkeley Square House, Berkeley Square
London, W1J 6BD


Contact
Tel: 0800 470 0430
Email: enquiries[at]assetzcapital.co.uk
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Assetz SME Capital Limited is a company registered in England and Wales with company number 08007287. Assetz SME Capital Ltd is authorised and regulated by the Financial Conduct Authority (Reg No: 724996). ’Assetz Capital’ is a trading name of Assetz SME Capital Ltd. Assetz SME Capital is registered with the Office of the Information Commissioner (Reg No: Z3338899) for data protection purposes. Email disclaimer

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