Assets Capital's average investor return has been over 10% per annum over the past 12 months. The growth of the platform in 2014 was 300% compared to the same period of the previous year. By the end of the year, the company plans to raise more than £ 300 million in loans. By 2016 then one billion.
Assetz Capital is already an established player in crowdlending. The company was founded in 2013 and claims to have 7,300 registered investors and more than £ 61 million in loans. Assetz Capital has targeted small and medium-sized enterprises (SMEs) looking for an alternative to bank credit. In particular, the peer-to-business lending has experienced a strong boom in recent years.
The initiator of Ablrate is David Bradley-Ward, a British aircraft designer who runs a leasing company for aircraft. In 2013, he had once failed to obtain financing for the purchase of an aircraft through banks. For him, the opportunity to think about alternatives, which led him pretty quickly to try it with equity-based crowdfunding.
In the secondary market You can sell your shares in loans. This is useful, for example, when you need money fast and want to liquidate your investment. Investors pay no fees on the primary market. In the secondary markey a 1% fee will be charged.
If you want to invest in Ablrate , should also try to spread your own investment on several loan projects! Securing a loan does not guarantee protection against total loss of the investment. The basic rules of investing apply here as well as everywhere.
All loans at Ablrate are secured credit, which means in case of insolvency, the plane, the property or machine can be sold. This way, even in the worst case investors can see part of their money again. In the event of a theoretical theft of an aircraft, this could be ensured internationally by the "Cape Town Convention".
1-2% of the total value of the aircraft per month is charged as rent. Yields for investors are 6 - 14%, depending on various factors such as the credit rating of the company. Companies with good credit ratings offer more security, but also pay less interest. The investor thus makes less return. At Ablrate, each loan project receives a rating that should provide guidance to the investor.
That means instead of 20% equity, the leasing companies now have to bring 30% - 40% equity. This makes it difficult for the leasing companies to do their business considerably and it is increasingly looking around for outside investors. With Ablrate now the fund raising can be done easily and effectively.
In the aviation industry, it is common for smaller companies to lease aircraft to major airlines. At Ablrate, investors have the opportunity to invest in the purchase of such aircraft. While it used to be common practice for a leasing company to receive 80% of the purchase price from the bank when buying an aircraft, the conditions have changed as a result of the financial crisis. Now that the banks are forced to keep more money than reserve, this value has slipped to 70% - 60%.
Ablrate 's goal is to bring credit-seeking companies together with private and institutional investors. The platform was created by experienced aviation industry professionals and lending experts. In addition to aircraft investments, the credit marketplace also offers financing for real estate and capital goods.
Ablrate is a peer-to-peer credit marketplace where investors can invest in aircraft. Here, secured loans are granted for aircraft purchases and other capital goods. The aircraft can be sold in the event of insolvency. Investors can then get back a good part of their money even if the investment goes badly.