Assetz clarifies “UK businesses” descriptor
Assetz Capital has clarified that some of its asset-backed loans may be owned by companies incorporated, entities existing and/or persons resident or domiciled outside the UK.
However, the lender reassured its investing community that it is not taking overseas commercial risk.
In a note to investors, the platform said that any business loans listed on the platform will always be for businesses predominantly based in the UK, while any property security will always be in the UK.
Assetz confirmed that its stated intent is still to lend to UK businesses backed by UK property security, and added that that intent has not changed. Where the security is owned by an overseas entity, Assetz will use an independent legal team to manage any technical and legal differences.
“As businesses operating predominantly (indeed probably exclusively) in the UK, they will be adding positively to UK GDP,” the platform said.
“Going forward, please note that, ‘UK business’, for this purpose, is to be construed as including ‘a company, entity or person owning property and/or other assets located in the UK with a view to generating income, but regardless of where the company is incorporated, the entity exists, or the person is resident or domiciled; this could be in the UK or overseas.”