Loans to this group make up over 60% of the personal asset lender’s loan book.
Paul Aitken CEO of borro, the personal asset lender, comments:
“Last week, Bank of England statistics showed that lending to companies went down 3.5% compared to a year ago. Securing finance is obviously one of the biggest challenges small businesses and entrepreneurs must overcome, and many are unable to access this via the big banks. At borro we have seen a huge increase in the number of small business owners and the self-employed taking out loans against their personal assets.
"This group makes up over 60% of our customer base, and their average loan value has risen 17% from £17,000 to £20,000 in the first quarter of this year alone. The average loan term is between four and five months, with prestige cars, fine art and antiques being the typical types of assets used as collateral. Our lending to small business owners and the self-employed is growing, proof that alternative forms of financing are becoming more mainstream.
“borro understands the financial challenges this group face which is why we have launched the ‘Money Making Ideas’ competition, where a small business or entrepreneur will be awarded with a £10,000 prize to invest in their existing business.
"To participate in the competition, entrants will need to film a 60 second ‘elevator pitch’ of them talking about their business idea and how they would invest the prize money and submit it via the borro Facebook page. The competition is officially being launched tonight at a special event at The Adam Street Private Members club in London, where attendees will also be able to film their pitches.”
