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Market insight: Alternative finance’s place in a diversified portfolio

Alternative finance providers are plugging the gap for businesses let down by banks and traditional funders with the UK industry worth more than £5.7 billion in 2017. Andrew Thomson, chief executive, discusses how London Capital & Finance is harnessing innovation in funding business.

Alternative finance providers are plugging the gap for businesses let down by banks and traditional funders with the UK industry worth more than £5.7 billion in 2017. Andrew Thomson, chief executive, discusses how London Capital & Finance is harnessing innovation in funding business.

The demand for access to finance, particularly from high-growth UK businesses, has led to an increase in alternative finance offerings and in turn disrupted the world of traditional lending from banks. The UK online alternative finance market grew from £310 million ($382 million) in 2011 to £4.58 billion in 2016, according to the Cambridge Centre for Alternative Finance. It is showing no signs of slowing down, creating a substantial opportunity in the market. 

The trouble for banks who are stuck in their legacy system is that the banking industry is plagued with increasingly complicated processes that require banks to lay out expensive resources to compete with new alternative finance models. 

Alternative finance has contributed to paving the way for UK businesses to grow at an exponential rate up from 440,600 start-ups in 2011 to 657,790 start-ups in 2016. A Virgin StartUp report revealed that start-ups boosted the UK economy by an enormous £196 billion every year. 

London Capital & Finance Plc (LC&F) entered the alternative finance market in 2012 as a commercial finance provider to UK businesses. The business model focuses on providing structured and secured bespoke lending solutions to UK businesses, many of whom have been let down by traditional sources of funding in the banking sector. The financing LC&F provide typically requires out-of-the-box thinking and bespoke legal and security structures to be put in place that cater for the flexibility of funding required by the borrower to achieve their end result. It also caters for the security and risk mitigation needed to protect the company and our investors.

Since 2016 LC&F have enjoyed a 2208% increase in turnover and a 984% increase in inbound invested funds. With a loan to value ratio of 32.02%, a loan book of £213 million and no defaults as of the 31 August 2018 LC&F is going from strength to strength. 

How can LC&F fit into your investment portfolio?

To fund LC&Fs lending activities they raise capital via various fixed rate offerings. LC&F will create a bespoke offering for you based on your investment strategy. Whether you are pursuing a preservation income based strategy or are looking for long-term capital growth, LC&F can tailor the product to suit your needs.

If you would like to see if LC&F can offer a bespoke product to suit your needs please contact: investment@lcaf.co.uk or call +44 20 3861 9060

 

 

LC&F Foundation: Giving back

The LCF Foundation was born from the desire to support worthwhile causes, big or small, and give something back to the community. The foundation runs a sponsorship programme to support ambitious grassroots equestrians who are striving for success alongside supporting a number of charities including Nordoff Robbins—a large independent music therapy charity in the UK. 

Andrew Thomson, chief executive of London Capital & Finance Plc, said:

“Striving to innovate in all that we do is at the core of our business values; and the success this has had for us has put us in a position to support causes and charities that we believe have the same values as our own.” 

At Nordoff Robbins, they celebrate the connection and joy music can bring to those with life-limiting illnesses, physical disabilities or emotional challenges. As the UK’s leading independent music therapy charity, they work across the country offering vital support through their dedicated open access centres.

The LCF Foundation is proud to support the fantastic work that Nordoff Robbins do and support them in a number of ways. They have therapists who work in schools, nurseries, hospitals, care homes and community centres, to make sure they are reaching and supporting the UK’s most vulnerable and isolated people, when and where they need help the most.

More information can be found at: 

 


 

London Capital & Finance Plc

The Old Coach House

Eridge Park, Eridge Green

Tunbridge Wells

Kent

TN3 9JS

www.lcaf.co.uk

info@lcaf.co.uk

T: +44 (0)203 861 9060 


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