Ipswich-based alternative finance provider Fleximize becomes founding member of new industry association
- Credit: Archant
Suffolk-based alternative finance provider Fleximize has become a founder-member of a new association created to promote high standards within the sector.
The Association of Alternative Business Finance (AABF) sets out four operating principles which members will be required to adhere to – Transparency, Responsibility, Fairness and Security.
Alongside Ipswich-based Fleximize, which specialises in providing finance to smaller firms, founder members of the AABF include Capify UK, Catalyst Finance, Credit4, Liberis, The Just Loans Group and YesGrowth.
John Davies of The Just Loans Group, who is chairing the association, said: “A vibrant and diverse alternative lending sector has successfully established itself in the UK and we feel the time is right to give it a voice and promote best standards of industry practice.
“Not surprisingly our operating principles lean heavily on the well established British Bankers Association Lending Code.
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“Naturally SMEs considering alternative finance will have questions they want answered. In the future when they see the AABF logo they can rapidly get the detail behind the four key principles from our website and be reassured they are dealing with a company that totally embraces responsible lending.”
The new association aims to work closely with other established finance associations but, added Mr Davies: “The AABF will enable alternative lenders to speak with a common voice, promote best practice and influence how the sector develops.”
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A key early initiative for the AABF is for members to create and subscribe to a centralised database for Personal Guarantees that will prevent borrowers over committing themselves and help identify potential fraudulent activity.
Alongside its membership of the AABF, Fleximize has also just launched a new comparison tool that allows its customers to rate check not just Fleximize loans but external quotes.
Peter Tuvey, co-founder and managing partner of Fleximize, said: “At Fleximize, we believe that business finance should be priced fairly and transparently.
“With some lenders hiding the cost of their loans behind unconventional rates, business owners can end up paying more than they thought for their funding.
“We hope that our rate comparison tool will educate business owners about these less conventional rates, and ensure that they get the best possible deal for their business.”