An online lender specialising in types of asset-backed deals has won regulatory clearance in the UK an is now preparing to head Down Under.

UK-headquartered online lender Ablrate has won full authorisation from the Financial Conduct Authority, triggering expansion plans for the business in Australia and later, other parts of the world.

The authorisation by the UK regulator means Ablrate, which enables asset-backed lending in areas such as aircraft and capital equipment, said it has logged a rise of 850 per cent in loan volume for 2016. 

The company, which has seen an 850% increase in loan volume in the last year, has achieved full authorisation and now plans to expand the business. Founded by a team of industry experts in aircraft, leasing and finance the company launched in “beta” in 2014, then launched its new platform in 2015 and has filled £19 million in loans during this period with £5.2 million traded on its secondary market.

“Full authorisation now allows us to attract further quality staff, concentrate efforts on our technological development and origination and begin to expand quickly. Aside from our UK business we are close to launching with our partners in Australia where they also have full authorisation, and we can now begin discussion for roll out of the technology in other regions,” David Bradley-Ward, chief executive at Ablrate, said.

The development of such online lending platforms, such as those known as peer-to-peer services, has come at a time when conventional bank lending has been squeezed since the 2008 financial crisis by tougher capital standards on banks.