Ablrate launches new product that makes peer lending safer and easier

From: Gutenberg Communications
Published: Tue Aug 18 2015

Ablrate, a pioneering peer-to-peer lending platform offering investors access to asset-backed loans against investments has announced a partnership with The Just Loans Group Plc, to provide commercial property-backed investment options on the Ablrate platform and making the process of lending to businesses on its platform safer and easier.

While a growing number of retail investors are being tempted by the high 6-12% interest rates range offered by the peer-to-peer lending space, they also show concerns with having to rely on their own judgment to decide which companies are safe to lend to.

Ablrate’s new product seeks to solve this issue by offering investors the option to lend to a portfolio of loans that a Just Loans Group Plc subsidiary has already made to SMEs. Given that the company has a "zero loss" policy, aiming only to lend to companies with adequate security, Ablrate’s investors are being given access to a ready-diversified and secure portfolio.

Commenting on the new product, Andy Sweeney, Head of Fixed Income at Ablrate, said: "This is a great opportunity for investors. Whilst people should always look carefully at the risks before lending money, in this situation you know that Just Loans Group Plc have already done their own due diligence and decided that these are good businesses to lend to. For many people looking to make an investment, this is a fantastic selling point. On top of that, you aren’t just lending to one business, you are lending to a series of businesses so your risk is ready-diversified."

The other important aspect the new product covers is security. Typically most peer-to-peer lending is unsecured, but Ablrate ensures that assets can be seized in case borrowers miss their payments. This adds a layer of prudence to the offer, which retail investors will appreciate.

David Bradley-Ward, CEO, noted: "At the heart of our business is the intention to provide maximum protection for our lenders at all times. This means that we will always take a charge over assets. In this case, Just Loans Group plc are providing a full guarantee on all interest and capital payments, as well as pledging the assets of the business owner as collateral and leaving money on deposit as a sign of goodwill. This three-tier protection is very unusual in the peer-to-business or crowdlending space."

The new product goes live this week with a maximum capacity of £500,000 on the first loan. For more information please visit www.ablrate.com.

About Ablrate
Ablrate is a pioneer in asset backed lending against high-quality assets and the first peer lending platform in the world to give investors access to aircraft transactions. Through our unique online investment platform, we enable individuals and businesses to manage their own financial risk and returns, disintermediating and removing the cost of the middleman. Investors have full visibility of the asset they are investing in, but also of the potential risk exposure (estimated by ablrate.com) they are taking on. Ablrate gives investors access to exciting and unique investment opportunities ranging from the highly regulated aircraft leasing space to capital equipment transactions that provide investors with good security and higher returns.

About The Just Loans Group PLC
The Just Loans Group PLC entered the alternative finance sector in 2014 to help bridge the financing gap that was restricting the progress of UK businesses. The Group is focussed on funding growing UK businesses with loans between £10,000 -£500,000. The business has already built a loan book of over £10m with skilled and experienced underwriting leading to zero capital loses to date.


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Gutenberg Communications
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