New lender HNW Lending has joined the asset finance market as a provider of loans worth between £60,000 (72,900) and £1m, against clients’ valuable assets.
Backed by funds provided by founder Ben Shaw alongside 10 other high net worth (HNW) investors, the company has said it is actively searching for more investors to provide further investment towards the company’s growth.
Despite being a mere few months old, HNW Lending has already been involved in setting up over £500,000 of loans against valuable assets.
The company has said it aims to arrange up to 20 loans each month, at an overall value between £2m and £5m.
Based around peer-to-peer lending, HNW Lending described its service as "discreet", with funds usually released within a week without the need for credit checks.
Ben Shaw, founder and director of HNW Lending, said the time is ripe for a proposition such as the company’s: "There are well over 700,000 high net worth individuals in the UK and by 2017 it is predicted that their number will grow to over one million.
Classic cars, fine wines, jewellery, yachts, private jets, art and property are among the assets considered.
Shaw said that the rise in HNW individuals "coincides with banks becoming less willing to provide large loans due to new regulatory and capital requirements, and a rise in the value of many collectable assets.
"For example," he added, "between Q2 2003 and Q2 2013, classic cars increased by around 430% in value and fine wines rose by 182%. Furthermore, £25,000 worth of the top 10 performing bottles of whisky bought in 2008 would now be worth more than £100,000."