Alternative funding to become the norm
borro, which successfully took its personal asset lending model to the USA in 2012, having launched in the UK in 2008, has lent over £55m in that period and 2013 will see over £25m of new loans with a turnover of £13m.
Chris Willis, senior vice president for business development and sales at borro, said the types of alternative lending source which arose out of the withdrawal of the banks have been responsible for much of the dynamism in today’s market.
He said: “Into the vacuum caused by the stampede of banks withdrawing or just retreating, new types of lender have emerged to help fill the gap.
“Peer to peer and bridging lending as well as personal asset finance which borro has championed are all part of a renaissance of a more personal and uncluttered approach to lending, whether it is for private or business purposes.
“The intermediary community has been quick to recognise the value of these new sources of funding.
“However, now that the novelty has worn off and legitimacy and value have been established, I think the time has come to recognise that these are no longer ‘alternative’ lending sources but part of the new mainstream.
“borro has doubled its lending every year from a standing start and now that the concept of lending against personal assets is well established, we believe that the foundations have been laid for a richer and more diverse lending culture.”