Contributed By Winston & Strawn London LLP
The alternative credit provider market is a mature market in the UK. There are debt funds covering not only loans of all sizes but, increasingly, a full suite of lending products, including many types of specialist property finance, infrastructure lending, asset-backed lending and receivable finance, as well as leveraged loans. These funds typically can call on managed accounts to top up fund commitments and provide substantial loan sizes.
Alongside this, peer-to-peer platforms are growing and expanding into areas such as SME lending and receivables financing, often backed by current edge credit assessment technology rather than traditional underwriting, which reduces cost and increases efficiency, in some cases challenging the traditional bank approach.