Funding for Lending scheme still lacking, says Borro
In recent months, Borro, the UK's leading personal asset lender, has continued to boost the coffers of the nation's businesses. SMEs and startups continue to turn to the personal asset lender in order to access the funds they need. What's more, the business is frequently a key facilitator when it comes to helping start-ups: in the past year nearly one thousand small business owners have used Borro's service, of which 20 per cent are in the process of setting up a new business.
The business model means that Borro's expert valuation team sees a huge variety of high value and often unusual assets come through its doors as collateral for loans. This allows their owners to access liquidity, while never having to part with these unique and valuable items.
Paul Aitken, CEO and founder of Borro, says: “Recently a businesswoman came to us to access liquidity to capitalise on a time-sensitive business opportunity that wouldn't have gone ahead without Borro's service. She secured a £3,000 loan within 24 hours against a collection of jewellery. Similarly an international distributor of children's toys came to us in order to fund new stock for their online business, and they have used us repeatedly ever since.”
In the last year Borro has loaned £20 million to business owners, with the average SME loan increasing from £24,000 to £26,000 in the past year; an increase of 53% per cent since Borro launched. Over half of Borro's current client base is business owners and more than half of all Borro's SME clients come back for further loans.
Paul continues: “According to the latest Funding for Lending figures, lending to businesses through the scheme was still negative in the last quarter, and many of our clients tell us they haven't even attempted to access finance through the more traditional means, instead coming straight to us. Even if a bank were to grant a loan, these businesses would still have to wait a considerable period before the cash enters their accounts whereas we are able to provide risk free finance against personal assets within 24 hours. This makes life so much easier for SMEs who often need quick liquidity to make a quick purchase or pay a tax bill for example and we understand this. At Borro we provide a savvy solution to facilitate business transactions with ease to those who need it.”