Cross-Border Joint Venture Creates New Player in Bill Finance Space

Alternative loans

Assetz Capital, the peer-to-peer platform for secure transactions, has entered into a partnership with a major US provider of invoice financing for SMEs.

Groundbreaking joint venture unites Assetz with Interface Financial Group – one of the largest alternative financing solutions for SMEs in North America, with a presence in 9 different countries. The aim of the 50/50 partnership is to create a new invoice financing product in the UK – a product that is expected to arrive as early as Q1 2015. In line with Assetz’s mantra, the new product will be backed by achievable security – as well as benefit from IFG’s proven credit underwriting process.

Exceptionally, investors can access the new facility with a minimum investment of just £1. Quite different from some of the UK’s most successful bill financiers, where investors have to shell out several thousand pounds to get involved. Returns through Assetz’s new invoice financing product are expected to reach a gross return of 10% per year. Investors will be able to select invoice financing opportunities or simply spread funds evenly across an invoice financing portfolio.

Stuart Law, CEO of the Assetz platform, commented:

“We are building a range of credit products suitable for all types of businesses, as well as a marketplace of peer-to-peer investment products suitable for all types of investors, from individuals and ISAs to hedge funds and credit funds – term funding for companies, partially replacing overdraft facilities, in exchange for healthy returns for investors There is a strong appetite from companies and investors for this solution managed.”

“Asetz Capital takes a strict stance on underwriting credit and collateral on its loans and all invoice finance transactions will follow the equally strict and proven IFG credit process.”

“A new Invoice Finance account will be launched, which will provide strong liquidity on an asset class with an average transaction duration of 42 days.”

IFG has the feel of a very practical outfit to strap in with. The company just launched an online invoice financing marketplace in the US and Canada, but has been providing flexible, short-term financing to hundreds of thousands of small businesses for over 40 years. IFG’s pipeline of potential product users should prove invaluable to the JV. Indeed, the optimism surrounding the new product is such that it will soon be available in Ireland and other European countries.

George Shapiro, CEO and Chairman of The Interface Financial Group, said:

“We have worked with thousands of companies over the years who have been unable to obtain traditional corporate finance facilities. IFG’s growth demonstrates this, and with the peer-to- peer of Assetz Capital and our invoice finance marketplace platform with a leading credit-underwriting system, we are able to expand our footprint in the UK and Europe so that more companies in the world can benefit from agile financial solutions. The peer-to-peer model also allows investors to achieve excellent returns, so we can’t wait to get started.”

There is definitely an opportunity here. Despite the success of market leaders – Market invoice and Platform Black – there has been a surprising dearth of new innovators in the UK bill finance space. Assetz is moving towards “one-stop-shop” status – an online hub capable of offering multiple and diverse products to investors and borrowers.

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