Alternative finance association launched to champion best industry practice

The Association of Alternative Business Finance (AAFB) has officially launched today to champion and promote the best standards of industry practice in the rapidly growing alternative lending sector.

Founded by Capify UK, Catalyst Finance, Credit4, Fleximize, Liberis, The Just Loans Group and YesGrowth, the (AAFB) will encourage members to adhere to its four operating principles: transparency, responsibility, fairness, security.

The association says one of its key initiatives is for members to create and subscribe to a centralised database for ‘Personal Guarantees’, with the aim of preventing borrowers over committing themselves and helping identify fraudulent activity.

John Davies, chairman of the AAFB, commented: “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 […] The AABF will enable alternative lenders to speak with a common voice, promote best practice and influence how the sector develops.”