A. Two-Factor Authentication
Why have you introduced 2FA?
This change is for your benefit to make the platform and your funds more secure, and to make sure we are following best practice.
Which processes will require 2FA?
Logging onto the platform (unless you opt-out), making withdrawal requests, selling loan parts at a discount, updating your profile and changing your communications preferences all require you to use Two-factor authentication.
Can I opt-out of 2FA?
You can reduce the number of times you use Two-Factor Authentication, however it will still be required for sensitive areas of your account.
Is a valid phone number a requirement for 2FA?
A valid telephone number is required for initial setup. After setup you have the option of using Authy, either via the app or desktop version. If you don't have access to the number registered to your Two-Factor Authentication call the customer service desk and we can update your number after we complete standard security verification.
Can I use Authy offline?
Once set up Authy works offline with no internet connection, you just open the app, select the site / service you wish to authenticate, and type in the code that is shown in your web browser. Push notifications work over the internet without requiring a mobile phone signal. You can also opt to use your landline as 2FA. You may also use Authy for the desktop, the Authy app or with any SIM in any country as it is designed for offline use. You then have a 30 second window to enter the digits and have it accepted by the server.
Does Authy work on Windows, Mac and Linux desktops as well as non smartphone mobiles?
Authy provide options for different platforms. They provide a smartphone app, desktop app or a browser plug-in if you are using Linux. Please visit Authy for more details to find out which solution is most suitable for you.
Can I register multiple accounts with Authy on the same device?
You can use multiple accounts with the same Authy ID. This works with SMS or telephone call to mobile or landline as well as Authy.
Can I use a landline?
Yes, you can use a UK or non-UK landline to listen to your code.
When I reach the maximum number of login attempts (5) what should I do?
We can only unlock the account if you have entered your password incorrectly 5 times. If this is the case then please get in touch with the lender team. If you enter the Two-Factor Authentication (2FA) incorrectly 5 times then we cannot unblock the account and you will have to wait one hour before you can try again.
Why is there not an email option for 2FA?
Two-Factor Authentication uses an app or phone line (mobile and landline) because it adds an additional layer of security that is more secure than email alone.
What should I do if I don’t receive my 2FA code to my mobile phone?
What should I do if I don’t receive 2FA codes to my landline number?
Authy is asking me for a QR or Key . What do I do?
This would happen is Authy does not recognise that you have an Assetz Capital account.
Please take the following steps:
I don’t have a smart phone can I still use the Authy app?
Yes, you can download a desktop app for Windows, Apple Mac OSX and a plug in for the Chrome browser.
I am being asked to change my password, why is this?
As part of our efforts to improve security for investors we are ensuring that all investor passwords meet a minimum standard.
How do I set up 2FA?
You can set up 2FA by clicking this link http://investors.assetzcapital.co.uk/lender/notify/two-step-authentication-opt-in. Follow the on screen instructions to progress. If you need any assistance contact our office on
Telephone : 0800 470 0430 , option 1
Email : firstname.lastname@example.org
B. Creating an Account & Account Settings
How do I set up an Account / Register?
How do I reset my password?
Please visit our password-reset page and enter your username or email address to receive a link via email to reset your password.
If you still need further assistance in requesting a new password, please get in touch with one of our lender team today by calling 0800 470 0430.
How do I reset my security questions if I have forgotten them?
When entering the answers to your security questions, please ensure you enter them in exactly the same format as when you set up your account. This includes spaces, punctuation and any capitalisation.
If you are still struggling to access your account, please get in touch with our Lender team who can help you to reset your questions by calling 0800 470 0430.
I need to change my surname to my married name. Do I need to send in my marriage certificate?
Yes. We require a copy of your marriage certificate.
I have moved address. What documents do I need to provide you with?
We can accept scanned copies of the following documents, showing your address:
Please send the document(s) to email@example.com
I am being asked to set up a memorable word, what is this for?
When you contact Assetz Capital we will need to verify that we are speaking to the account holder. We may ask you to confirm characters from your memorable word.
C. Protecting your investment
Where is investor money held?
Any monies transferred to our platform, but not yet lent to a borrower are held in a designated client money account in accordance with FCA rules. This account is “ring-fenced” from Assetz Capital’s own money and is protected in the event that anything should happen to Assetz Capital, safeguarding clients’ funds. The account is held with Barclays Bank.
Monies which are lent to borrowers via any of our accounts are with the borrower for their use under the terms of their loan agreement and as such there is a degree of risk to your capital; in this case, if the borrower is unable to repay their loan.
Is my money protected by the Financial Services Compensation Scheme?
It is important for our lenders to be aware that, like all peer-to-peer lending platforms, we fall outside of the scope of the Financial Services Compensation Scheme (“FSCS”), though we are regulated by the Financial Conduct Authority (FCA). This means that, should a peer-to-peer lending platform fail for any reason, those investing (lending) directly via the platform would have no recourse to the FSCS.
However, changes in the law in 2016 has resulted in some protection being offered to lenders investing in peer-to-peer platforms under specific circumstances.
More can be read about this here: https://www.assetzcapital.co.uk/blog/show/86/2016/05/19/fscs-protection
You can read more about the FSCS here: http://www.fscs.org.uk
What is the Assetz Capital Provision Fund?
Assetz Capital Provision Funds
Assetz Provision Funding Limited (“APFL”), a UK Limited Company, has been set up to provide discretionary Provision Funds linked to specific, identified Investment Accounts on the Assetz Capital platform.
What do the Provision Funds cover?
The primary goal of each Provision Fund is to provide lenders with an additional layer of protection against the prospect of capital loss. Everything else is secondary to this.
While a loan is performing normally (i.e.: not subject to a Credit Event) each Provision Fund is designed to cover:
When a loan is subject to a Credit Event:
What do the Provision Funds not cover?
The Provision Funds are not designed to cover interest following a Credit Event, which typically accrues at a higher rate and where recovery action can take some time, depending on the type of security supporting the loan. Paying increased interest through an unknown recovery timeframe would make it difficult to predict accurately the likely actual loss from a loan and, therefore, the Provision Fund’s ability to bear it. It could also place a significant additional burden on the Provision Fund, potentially depleting it at a much faster rate and leaving it unable to cover capital losses arising from loans subject to a Credit Event in the future. Covering capital losses is the primary goal of the Provision Fund.
Separately, in a situation where lenders vote to accept a proposal from a borrower for debt forgiveness when there is a clear alternative that offers the prospect of full recovery of lenders' funds, the Provision Fund will not normally cover losses for those individual lenders who voted to accept that loss. Lenders that did not vote or that individually voted against taking a loss should expect to be covered by the Provision Fund.
Finally, should a Provision Fund become depleted as a result of covering existing loans which have been subject to a Credit Event, that Provision Fund may be unable to cover some or even all of any future losses until such time as the Provision Fund is replenished.
How is the Provision Fund funded?
Each Provision Fund is funded principally by:
The balance and blend of the funding may vary over time at the discretion of the Directors of APFL.
How much money is in each Provision Fund?
Each Provision Fund provides a coverage multiple of the expected future losses on the loans held within the associated Investment Account. The value held in each Provision Fund and the coverage multiple for each Provision Fund is set out on the page relating to that Investment Account.
Why are the Provision Funds discretionary?
When Assetz Capital launched its first Provision Fund, consideration was given to how a Provision Fund would “fit” into the regulatory framework, as documented at the time.
A non-discretionary Provision Fund might be viewed as tantamount to credit insurance and the provision of insurance is not something which sits within the permissions of a typical peer-to-peer lender. Not wishing to be perceived as having acted outside of our authorisation, we decided that the Provision Funds should be discretionary. This situation remains under review as the regulatory framework expands and matures.
Who exercises the discretion?
The directors of APFL will determine whether payment should be made on a case-by-case basis depending on the circumstances. At least some of the Directors of APFL are common with Assetz SME Capital Limited.
It is the intention that, subject to funds being available, APFL would pay out under all reasonable circumstances where there is a genuine credit loss (or delayed/missed payment on a performing loan) for an Investment Account covered by a Provision Fund.
What happens if a Provision Fund makes a payment to lenders but the borrower subsequently pay what was due?
Any payments of delayed interest (or lost capital) from a Provision Fund to a lender requires that if that interest or capital is somehow later collected from those specific loans then the funds collected will be used to repay the associated Provision Fund.
Differences in the coverage of payment delays or shortfalls within the Access Accounts
The Provision Funds for the Access Accounts (currently the Quick Access Account and the 30-Day Access Account) operate slightly differently when it comes to covering missed interest payments and these differences are highlighted here.
The Access Accounts pay a target, capped rate of interest on an equivalent monthly basis. The monthly payments to lenders flow from the loan interest from the loans held by lenders in the Access Account. Any interest received above the level required to service the monthly payments to lenders is allocated to the Access Account’s Provision Fund, as per the terms of the account.
If a loan is subject to a Credit Event and is not paying interest it will not, in isolation, prevent the full monthly payment from being made to lenders as there is normally a significant surplus of loan interest coming into the account: the same surplus which normally goes to fund the Provision Fund. In such a scenario, the amount of the surplus going to fund the Provision Fund would be reduced slightly (which incidentally has the same net effect as the full amount of the surplus going to the Provision Fund, then some of it being drawn back to pay the missing interest due to lenders).
The effect of this is that, while the Access Account continues to pay the capped rate of interest to lenders then it is, in practical terms, covering any missing interest due from loans subject to a Credit Event held within the QAA.
Investment Accounts benefiting from a Provision Fund
D. Starting to invest
Do I have to pay any fees?
Unlike many other peer-to-peer lenders, Assetz Capital does not currently charge lenders a fee. All costs are paid for by the borrower.
Is there a minimum investment amount?
The minimum investment amount per loan on the Assetz Capital platform is £0.01. We encourage manual investors to consider spreading their risk by diversifying their money across as many loans as possible.
How long is my cash tied up for?
Loan term lengths can be anything from 3 months to 5 years.
Investors have the option to list their loan parts for sale at any time if they wish to free up their capital. The sale of loan parts is subject to demand from other investors (including any auto-invest accounts). For this reason, Assetz Capital cannot guarantee that loan part will be sold on the secondary market, only that it is possible to do so if there are other lenders willing to buy those loan parts.
When using one of our investment accounts, if you wish to take part or all of your capital out at any point, you need to click on the “Withdraw” button and enter the amount you wish to remove from the account. The system will then attempt to sell loan units for you as fast as possible in order to free up your funds. However please remember that these sales are still subject to demand from other lenders.
How often is interest payable?
Loans can have differing repayment profiles. Some pay interest and capital monthly. Others may be interest only, whereby your interest is payable monthly and capital repaid upon loan term. Some shorter-term loans also offer a single bullet repayment of accrued interest and capital at the end of the loan term. When using our investment account, you can choose to reinvest repayments, withdraw interest as it is received or withdraw all repayments.
How do I manually browse loan opportunities?
With Assetz Capital, you have the choice to use our investment accounts or to manually browse loan opportunities to hand-pick your portfolio. To see all of our current loans available for manual selection, please visit the ‘Manual Loan Investment Account’ section of your account dashboard.
How do I calculate my tax liability?
Any interest earned from any loan is treated as investment income by the tax man. The return you receive on your investment with Assetz Capital is paid gross; no tax is deducted “at source” by peer-to-peer lending platforms. Our investors are responsible for the payment of any tax due of them to HM Revenue & Customs. Tax will be payable at your marginal rate.
Investors can download a tax statement from their account dashboard which will calculate the amount of interest earned within a specified period for tax purposes.
We are not able to offer specific tax advice so we recommend that you consult a tax adviser if you are uncertain about the treatment of your investment returns.
I have failed my registration. What documents do I need to provide you with?
We will require Proof of Address and Proof of Identity. We can accept scanned copies of the following documents:
Please send the documents to firstname.lastname@example.org
Your Great British Business Account (GBBA) and Green Energy Income Account (GEIA) both say they are capped at 7%. What does this mean?
Both accounts offer ‘Target Capped rates’. This means the account is aiming to achieve a 7% maximum return but it could be lower.
What happens if the rate of return within the Great British Business Account (GBBA) and Green Energy Income Account (GEIA) are higher that the target capped rate?
If returns generated by loans in these accounts are higher than 7% lenders do not receive this additional return as it goes towards funding the provision fund. If the rate of return on either account is below 7%, lenders would receive the lower rate.
If I was to invest my money into the Great British Business Account (GBBA) and Green Energy Income Account (GEIA) and the interest rates changed, would I be getting the changed rate or the 7% rate at the time I invested in the accounts?
Your funds will earn interest at whatever rate is in place at the time of the investment. If funds were invested over a dual rate period your funds would get the rate for both periods at the times they were applicable.
Are there any maximum investment limits in any of the accounts on the platform?
Yes, the current maximum direct investment per person for the Quick Access Account (QAA) and the Money Supermarket 30 Day Access Account (MSM30DAA) can be found on the relevant investment account pages.
There are no limits on any other investment accounts or the Cash Account.
Is there a limit on the ‘Invest Idle Funds’ sweep function?
The maximum threshold for this function can be found on the relevant investment account pages.
Is there a limit to the amount of funds that can be deposited onto the platform?
No, any amount of funds can be deposited.
Why do some accounts have lower interest rates than others?
The features of the different accounts affect their target interest rates. For example:
Why do I have funds sitting at ‘Awaiting Investment’ in the Great British Business Account (GBBA) and Green Energy Income Account (GEIA)?
It can take longer for funds to get invested on our platform when there is more money placed into the accounts than there are loan parts available. If this happens we tell you that your funds are awaiting investment so you can decide to wait or move them to another interest generating part of the platform.
How long does it take for funds to be fully invested?
Depending on the account chosen investment can be immediate (if loan parts are available) or must wait until there is sufficient capacity to accept your funds. We don’t restrict investors or the amounts they can place on the platform and loans are equally available to all. As such it can take longer for larger amounts to be invested than a smaller amount. Loan origination is also a factor as investment is limited by the volume of loans available.
Do I need to deposit funds into the Manual Loan Investment Account (MLIA) when setting up ‘Buy Instructions’ manually?
Yes, you must ensure that in addition to setting ‘Buy Instructions’ you also deposit funds into the Manual Loan Investment Account (MLIA) so your 'Buy instructions' can purchase available loan parts.
Will the funds sitting in my Cash Account be automatically used by the Manual Loan Investment Account (MLIA)?
No, any funds on the platform sat outside the Manual Loan Investment Account (MLIA) will not automatically be used by the MLIA, e.g. money in the Cash Account or any of the other accounts.
How do I deposit/move funds into the Manual Loan Investment Account (MLIA)?
To deposit funds into the Manual Loan Investment Account (MLIA) you can either send funds directly to it by following the instructions on the Manage Funds page, or if you already have funds on the platform in your Cash Account you can click on the 'Start Investing' button on the MLIA, which will allow you to transfer in funds. Only funds from your Cash Account can be transferred in.
E. Assetz Capital Investment Accounts
How do the Assetz Investment Accounts work?
The Assetz Investment Accounts offer investors an easy way to invest through our platform, without having to spend time manually managing their loan selection.
Based on predefined types of security and rates of return thresholds, our product range allows you to be as prudent or as adventurous as you like in your strategy. This investment option auto-diversifies your portfolio across loans that fall within predefined targets for a more hands-off investment experience.
How many loans will my portfolio be diversified across?
When using our Investment Accounts, the system will automatically diversify your portfolio for you. The platform will attempt to diversify your portfolio down to 1% of your total holdings in any loan, provided there are at least 100 loans matching the account criteria. Please note that in situations where the number of loans matching the account criteria is low, diversification is only possible across the matching loans – this may mean that the actual extent of the automatic diversification may be limited unless/until new loans become available. In such a scenario the percentage invested in any one loan may rise.
For more detailed information on how the system works, please read our terms and conditions.terms and conditions.
What happens if a loan defaults?
If there is an adverse-material change within a loan you are participating in, we will inform you via the web site as soon as we know. Once a loan goes into default, it will be marked on the system.
For more information on our default procedures please visit our Defaults & Losses page - https://www.assetzcapital.co.uk/key-investing-information/defaults-and-losses/
Can I exclude certain loans from investment accounts?
No, you can’t opt out of any loans which meet the mandate for an investment account.
Can I set up a personalised investment account?
No, this is not possible on our platform at this stage. There are no plans to introduce this feature in the immediate future but it is something that we are keeping under review.
What happens if there aren't enough loans to allocate my funds to?
When you transfer funds into an investment account, the system will automatically diversify your account funds across many matching loans at any given time, with the aim of doing so in an equal and proportionate way and subject to loan availability. For example, if 50 suitable loans are available, the account will aim to invest approximately 2% of account funds into each loan. Likewise, with only five suitable loans, the account will aim to invest approximately a fifth (20%) of account funds into each loan.
Please note that in situations where the number of loans matching the account criteria is low, diversification is only possible across the matching loans - this may mean that the actual extent of the automatic diversification may be limited unless/until new loans become available. In such a scenario, the percentage invested in any one loan may rise.
Any funds sat in a particular account, which are yet to be allocated, will be displayed on the account as “awaiting Investment” as shown below…
What is Assetz Capital’s definition of "Normal Market Conditions"
Normal market conditions means conditions that are broadly what we have at the moment. This means economic conditions are reasonably stable, lenders are making withdrawals from the Quick Access Account (QAA) or 30 Day Access Account (30DAA), together known as the ‘Access Accounts’, in the normal course of business and other lenders are willing and able to buy their loan parts through that account and others that we offer. In addition, the Access Accounts also hold a certain amount of cash “liquid” to help increase the liquidity of withdrawal requests above and beyond normal market supply and demand. The result of the Access Accounts operation and the normal market conditions we have enjoyed to date is that every lender has had their withdrawal request carried out when they requested since the accounts opened for investment.
Nonetheless past performance should not be taken as a guide to the future and abnormal market conditions could conceivably change the speed of withdrawals. Abnormal market conditions would be if there was a very large, sudden and extended demand to withdraw cash from the Access Accounts. This might be caused by a global recession, an abrupt and widespread loss of faith in peer-to-peer lending or any number of other situations. If, for a sustained period, a significant number of lenders chose to withdraw their cash in significant quantities and no (or few) new lenders were available to buy their loan parts, conditions would at that point be abnormal and the Access Accounts would not be then able to maintain their current speed of access for withdrawals.
Ultimately this could mean that lenders may have to wait until a buyer could be found for their loans held within the Access Accounts, or until the loans were repaid over time by the borrowers. The latter situation arises due to the loans within the Access Accounts having monthly repayments being made by borrowers or by loans naturally reaching the end of their term for full repayment. This repayment of loans should continue to create some capital, which would be available for withdrawal by investors regardless of market conditions being abnormal.
This is the reason that we quote the “in normal market conditions” message everywhere that we refer to Access Account withdrawal times; we cannot guarantee access times in all possible economic scenarios and we want our lenders to understand that.
F. Account Queries
What is the ‘Invest Idle Funds Feature’ and what does it do?
It is a way to earn loan interest on funds that are awaiting investment or sat in your cash account. If you turn it on funds are swept into your Quick Access Account (QAA), up to a maximum of £100,000 (accurate as of September 2017) and will earn loan interest at the rate the QAA is generating. However, if the funds are needed back by the source account, the QAA aims to release them as fast as possible, subject to normal market conditions. Access times cannot be guaranteed.
G. Defaulted Loans
What security does Assetz Capital take over loans?
The main criterion for loan approval is the ability of the business to repay the loan. The amount of security offered proportionately reduces the risk for the investor, which in turn reduces the level of interest they are seeking on the loan.
All loans listed on the Assetz Capital platform have asset security. We take the following forms of security over loans:
The actual security pledged in support of a loan is described in the credit report for that loan.
If you invest in the Quick Access Account (QAA), 30 Day Access Account (30DAA) or the Money Supermarket 30 Day Access Account (MSM30DAA) and a loan goes into default and ultimately experiences a loss, will it only affect the Lenders who have invested in that loan?
All investors using the above accounts will be diversified across all the loans within these accounts. Any loan which results in a default and subsequent loss will affect all investors in those accounts equally. This is partly why these accounts have a provision fund in addition to the standard loan security provided on each loan.
H. Account Terms and Conditions
Can an under 18-year-old register an account on your platform?
No. Persons under the age of 18 are not able to enter into a formal contract and therefore are unable to make a loan to a third party. As such they cannot participate.
Do I need to hold a UK Sterling bank account in order to invest with Assetz Capital?
Yes, a UK Sterling bank account is required.
Can Non UK residents invest with Assetz Capital?
Yes, overseas residents can invest on our platform as long as they hold a UK Sterling bank account and we are able to verify their address and identity overseas.
I am an EU resident and I don’t hold a UK Sterling Bank Account, can I invest with Assetz Capital? If not, what can I do to be able invest with you?
If you don’t have a UK Sterling Bank Account then you cannot invest with Assetz Capital.
Some UK Banks offer UK Sterling bank accounts for Non UK residents, currently living in the EU. Please find below a list of some of the UK Banks that we believe may currently offer this service:
You will need to contact these banks to see if they can provide you with a UK Sterling Bank Account before applying to become a Lending Member.
I am a Non UK Resident; will I need to provide Assetz Capital with ID documents when registering an account?
Yes, we will require Proof of Address and Proof of Identity to complete a Know Your Customer (KYC) check. We can accept scanned copies of the following documents to satisfy these checks:
Please send the documents to email@example.com
I have adverse credit and I don’t hold a UK Sterling bank account but I want to invest on Assetz Capital, what can I do?
Basic (fee free) bank accounts are now available to anyone who doesn’t already have a bank account or who can’t use their existing account due to financial difficulty. Please find more information regarding this on GOV.UK https://www.gov.uk/government/news/new-basic-fee-free-bank-accounts-to-help-millions-manage-their-money
I. Transfer of Payment
If I want to transfer money from my Bank Account to my Dashboard, how long will this take?
If all the required reference numbers have been supplied, as per your 'Manage Funds' page, and they match up correctly, then the fastest it can be is within 1 hour for Faster Payments. For other payments, including CHAPS, this will be a minimum of next working day. If your payment is not visible after 2 working days please contact us immediately as additional information may be needed in order to allocate your payment correctly.
Can I set up a regular payment to my Assetz Capital account?
Yes, you can set up a standing order with your bank, telling them how much to send and how often. You will need to give them our bank details and the reference numbers from your ‘Manage Funds’ page.
Can I withdraw money from my Assetz Capital account to an account in somebody else’s name?
No, funds can only be withdrawn to a bank account in your name.
Why has my designated bank account not been automatically verified?
In some cases your bank details may not be automatically verified.
This could be down to a number of reasons such as:
-Your bank account may be newly opened
-Your bank has not provided details to the bank match system we use
-You have entered a typing error on your submission
-The bank account is not registered in your name
-You are not registered as a "UK individual"
In the interests of safe guarding your funds we will need to perform manual verification of the bank details you have submitted.
To complete this process please send a document which show the account is held in your name. We can accept the following; a bank statement, pay in booklet or a copy of a cheque showing your name and bank details nominated.
Scanned/email copies of these documents can be sent to firstname.lastname@example.org
Documents can also be posted to Assetz House, Manchester Green, 335 Styal Road, Manchester M22 5LW
We aim to review and process your verification request within 2 working days of receipt excluding the day of submission.
How do I withdraw funds?
You can withdraw your funds by completing the ‘Withdraw Funds’ boxes on the ‘Manage Funds’ page. Please ensure that the bank account specified is in your name which matches your Assetz Capital registration details and please double check to ensure that all details entered are correct.
How long do withdrawals take?
Typically withdrawal requests may take up to 2 working days to be processed.
If I invest my money in the Quick Access Account (QAA) or the 30-Day Access Account (30DAA) when does interest get paid to my account?
The interest earned in any particular month gets paid into your account on the on the first day of the following month.
If I invest in the Great British Business Account (GBBA) or the Green Energy Income Account (GEIA) when does the interest get paid to my account?
Interest gets paid on invested funds (not funds awaiting investment) throughout the month at different times depending on each individual borrower’s repayment date.
If I invest in the Manual Loan Investment Account (MLIA) when does the interest get paid to my account?
Interest gets paid on invested funds throughout the month at different times depending on each individual borrower’s repayment date. Please note that funds sat at ‘Awaiting Investment’ are non-interest bearing.
Why does my accrued interest figure on my Dashboard fluctuate?
Accrued interest is due but not yet received. The dashboard figure will go up as interest falls due and will decrease when it is received. The figure on the dashboard is there to give investors an idea of what they can expect to be paid, assuming the borrowers make payment in full and on time.
Can I automatically withdraw the interest earned in my investment accounts so it goes back to my Cash account?
Yes you can. Simply click the ‘On Repayment’ button on any of the investment accounts and select the ‘Withdraw Interest’ option. As interest is received it will automatically be moved to your Cash Account. From here you can then withdraw it back to your bank account via the Manage Funds page as required.
What is an Individual Savings Account (ISA)?
An ISA is an Individual Savings Account and is not a product in its own right. An ISA is a 'wrapper' in which you can shelter savings and investments from tax.
There are multiple types of ISA available; a Cash ISA, a Stocks and Shares ISA, an Innovative Finance ISA, and Lifetime ISA.
You can put money into one of each kind of ISA, up to a set limit, each tax year. This limit is known as your ‘ISA allowance’. Any returns or gains made from money placed in an ISA are not subject to income and capital gains tax
What is an Innovative Finance ISA (IFISA)?
The IFISA allows individuals to use their annual ISA allowance to lend funds through investments such as Loan Based Crowdfunding or Peer-to-Peer (P2P) Lending and Crowdfunded Debt Securities.
What is the difference between a cash ISA, a stock and shares ISA and an Innovative Finance ISA?
Cash ISAs can include savings in bank and building society accounts and some National Savings and Investments products.
Stocks & Shares ISAs can include shares in companies, unit trusts and investment funds, corporate bonds and government bonds.
Innovative Finance ISAs can include Peer-to-Peer Loans (loans that you give to other people or businesses without using a bank) and Crowdfunding Debentures (investing in a business by buying its debt).
When is the tax year?
The tax year runs from 6th April one year to the 5th April the following year.
What is my annual ISA allowance?
The annual ISA allowance may vary each tax year. The ISA allowance for 2019-20 tax year is £20,000.
You may wish to consult the government website for updates and changes to the annual ISA allowance.
How many ISAs can I have in one year?
You can have one of each type of ISA each tax year, so long as the total amount invested into your ISAs is within the limit of the annual ISA allowance. For example, you can subscribe to one Cash ISA, one Stock and Shares ISA and one Innovative Finance ISA in each tax year.
In the next tax-year you can subscribe to an additional ISA of each type again.
Who can open an IFISA?
You must be 18 or over (16 or over for a Cash ISA), a resident in the UK or a Crown servant (e.g. diplomatic or overseas civil service) or their spouse or civil partner if you do not live in the UK.
You cannot hold an IFISA with or on behalf of someone else.
You can check your residency status on the HMRC site below:
Can an IFISA be held with more than one provider?
Yes, but it is complex due to the ‘one of each type per year’ rule.
How can I set up my Assetz Capital IFISA?
If you are not already registered with Assetz Capital, you can set up your IFISA by registering for an account here:
Existing Assetz Capital account holders may log into their account and choose the ‘IFISA’ option on their Dashboard page. You will need to have your National Insurance Number to hand to complete the process.
What is an Assetz Capital account?
An Assetz Capital account is our Standard Investment account. This account is always created when you sign up to Assetz Capital.
You do not have to make investments with your Standard Investment account. You may choose only to invest through your IFISA account.
Funds can be deposited directly into your IFISA account via the Manage Funds page at the top of your Dashboard.
If funds are subscribed into your Innovative Finance ISA account which exceed the amount prescribed in the ISA Regulations, then the excess subscription will be transferred to your Assetz Capital Standard Investment account.
How do I subscribe to my Assetz Capital IFISA?
Subscriptions can be made directly into your Innovative Finance ISA account by bank transfer or by transferring non-invested CASH funds from your Assetz Capital Standard Investment account.You may also transfer money into your Innovative Finance ISA with us from an existing ISA with another provider.
All subscriptions must be in cash.
How do I make an investment in my Assetz Capital IFISA?
Once you have successfully subscribed funds to your Assetz Capital IFISA, your cash will be available to invest and, once invested, earn loan interest free of tax.
You do this by allocating funds to the various investment accounts on your dashboard.
Can I transfer existing investments from my standard Assetz Capital account into my IFISA account?
No, you cannot transfer existing investments that you have made in your Standard Assetz Capital account into your IFISA.
But you can sell loan parts in your Assetz Capital Standard Investment account and subsequently transfer non-invested funds to your Innovative Finance ISA Account, so long as you don’t exceed your IFISA Allowance.
Can I earn interest on cash?
No, uninvested cash funds do not earn interest.
Is there a minimum subscription amount?
Yes, the minimum initial subscription amount is £1.
Can I switch ISA provider?
You may switch providers for Innovative Finance or Cash or Stocks & Shares ISAs, or vice versa, by transferring your existing ISA to your new ISA manager.
You will be able to complete our online Transfer In Form to transfer existing ISAs into your Assetz Capital IFISA.
When can I transfer my ISA from another provider to you?
You can transfer your ISA at any time, you do not have to wait until the end of the tax year.
How much of my existing ISA can I transfer?
You can transfer all of your existing ISA; however, the minimum transfer in amount is £1.
For current year subscriptions
If you have subscribed in the current year, you must transfer the amount subscribed in whole to the new ISA manager. Any income/interest credited to the ISA relating to the current year subscription would also need to be transferred.
For previous years subscriptions
Investors can transfer whole or part of previous years’ investments to the new ISA manager.
Do I have a cancellation period?
If you decide you no longer want your IFISA, you will have the right to cancel your account within 14 calendar days of the date your account is opened. If you cancel within this period, you will remain eligible to open an IF ISA with us or another ISA manager. You will also not have used up any of your current year subscription. This will not apply if you cancel your IFISA after this period.
What if I have made subscriptions or investments during the 14-day cancellation period?
If you choose to cancel your IFISA, any investments and cash credited to your IFISA account will be transferred to a Standard Assetz Capital investment account.
How do flexible ISAs work?
What happens if I don’t use all of my yearly IFISA allowance?
If you do not use up your IFISA allowance, it will not be carried over to the next year.
What happens if I open an IFISA but then do not subscribe during a particular Tax Year?
If you open an IFISA, but do not subscribe any funds to it over the tax year, then it will be a considered a ‘break year’. This means that, because no subscriptions were made during the tax year, you will have to make a new ISA declaration next time you seek to subscribe in the IFISA.
Can I offset any capital loss on the sale of the loan parts at a discount against any capital gains made in the past or future?
Our understanding of current UK tax legislation is that this is not possible due to the funds within an ISA wrapper being exempt from Capital Gains Tax (CGT). However, please be aware that Assetz capital are not authorised to give tax advice and recommend that you speak to a Chartered Tax Advisor if you need guidance with regard to this. More information about CGT can also be found on the Government website, here.
My loved one has recently passed away and I believe they had an account with you. What do we do now?
We’re sorry to hear of your loss however we’ll aim to make this as easy as we can. To start with, we’d ask you to fill out the Bereavement Form below or alternatively request to speak to our Bereavement Team on 0800 470 0430 (Option 1). They can also be emailed: email@example.com
I’ve downloaded your Bereavement Form however I’m unsure what the account reference number is. How do I proceed?
The account reference number is helpful for us in identifying the correct account. The account reference number is used by lenders to make payments to their Assetz Capital account and therefore you may find it on a bank statement. Should you not be able to locate the reference, leave the field blank on the form and our Bereavement Team will follow up with you.
If I choose to have the funds liquidated, how quickly will they be released?
Once all documents have been received and reviewed, liquidation will begin immediately thereafter and payments to the nominated bank account will be made on a quarterly basis. Depending on what loans/accounts were chosen for investment, liquidation could be complete within the first quarter, but it may take longer as accounts have to be liquidated by selling the loan holdings to other lenders on our secondary market. Please contact our Bereavement Team if you would like us to explain how this works in more detail.
If I choose to have the account transferred into my name, will this merge with my existing account?
No – the deceased’s account will be separate however we will change the personal/contact/log-in details to suit your needs.
I’m not sure if there was a balance on the account and therefore do not know whether I need to submit grant of probate. What do I do?
Once we have received the other documents outlined on the above form, we can inform you of the balance of the deceased’s holdings. At this point, you can then request grant of probate if required.
N. Designated Bank Accounts
How do I add a new bank account?
Log into your Assetz Capital dashboard. Select ‘manage funds’ and then ‘bank accounts’ from the dropdown menu. When you arrive at the ‘Designated Bank Accounts’ page click on ‘Add new account’. When prompted add the account name, sort code and account number of the bank account you would like to add. Click submit and approve the two-factor authentication request. You will then see your bank account details on the page, but it will still need to be verified: we use a third-party system to confirm that the bank account belongs to you to help to protect our lenders from fraud. Most bank accounts can be automatically verified however If we do require further Information from you to complete manual verification, we will contact you.
Please note that a Designated Bank Account must be a UK bank account held in the name of the owner of the Assetz Capital account.
How long does it take to verify an account?
Bank accounts are normally verified automatically. If for any reason the system doesn't verify your account, our team will make contact with you via email within 2 working days. As part of the process we may request more details or documentation before we can complete the manual verification. We will aim to acknowledge receipt of your documents and process these within 2 working days, not including the day of submission.
What does “added from a legacy transfer request” mean?
A "Legacy account" Is a bank account that has previously been verified for use on withdrawals. We have preloaded these details into your account to save you some time. You can relabel the account or delete it if you would like.
How can I change the label or account?
You can change the name of the account by clicking on the little pencil icon beside the account name. This will make the existing name editable.
How do I delete an account?
From your account list locate the ‘actions’ column. There will be two icons. If you click on the left ‘rubbish bin’ icon it will ask you to verify that you want to delete the account by sending out a verification code to you.
How do I withdraw?
To withdraw to a new account, you will have to follow the steps outlined above. Once your new account is set up on the dashboard, verified and active you will be able to easily select it from the dropdown menu on the withdraw funds page. Typically, withdrawal requests may take up to 2 working days to be processed.
What is pending review?
If you deposit funds from an account that is not listed on your Designated Bank Account page a new bank account will appear as "Pending Activation". The bank account will remain at this status until we verify that the account details belong to you.
What does the status ‘verified’ mean?
An account is considered ‘verified’ once it has been confirmed as belonging to you. Which could be done manually as well as by using the 3rd party system.
What does the status ‘active’ mean?
An account is considered active and ready to use once it has passed all checks.
A. The Process
How can I apply for a loan?
To apply for a loan simply register as a borrower and one of our Relationship Managers will get in touch with you to collect the initial information.
Once I apply for a loan, how long will it take to process?
A Relationship Manager will meet potential borrowers soon after an enquiry or application has been made.
The Relationship Manager will collect the required information he will need to write a credit report. This will take 2-3 days to write and then will need to be checked and vetted before being uploaded for auction.
Our underwriting facility means that once all the paperwork is in place, loans can be funded immediately.
Are there any extra charges from borrowing money through Assetz Capital?
Whilst there are charges for borrowing money through Assetz Capital these are generally negotiable and will be agreed prior to any auction being launched.
What happens if I miss a repayment?
Whilst we remain sympathetic to cashflow issues that may mean repayments are missed, this remains an Event of Default. If a payment is not made on the due date, Assetz Capital has the ability to charge default interest (as advised in your Loan Agreement) on the balance of the loan until the missed repayment is made. Should this not happen and should a new agreement not be reached then Assetz Capital ultimately has the ability to call up any and all of the security you have granted to obtain full repayment.
Is there an early repayment fee?
Whilst we do not generally charge early repayment fees some loans may attract a minimum charging period, although this will be advised and agreed prior to any auction being launched.
Why do borrowers not go to the banks if loans are secured?
Since the credit crunch and start of the recession, the appetite of banks for risk has reduced significantly and this means they have tightened their lending criteria. As banks are very large organisations, they have to set and enforce strict criteria across the board. This can lead to inflexibility and there are many borrower proposals which are rejected by banks for failing to meet lending criteria in a very limited way.
As a small organisation with a lot of lending experience on the team, Assetz Capital is able to be flexible and use judgement as to whether proposals are worthy of support, despite the fact they may not fully meet a clearing bank’s lending criteria.
Do I have to disclose personal information to investors?
The choice is yours as to how much information you wish to divulge and if the business is to remain anonymous. Some lenders choose to do additional due diligence of their own, so disclosing as much information to them as possible can be advantageous. They may wish to visit your website or look at your competitors before they make a decision to lend.
What Happens if Assetz Capital goes out of business?
If Assetz Capital were to enter administration, the trustees of The Trust have the power to appoint new agents to manage any existing loans and the monies invested in them. All security in relation to the loans will be held by the trust and would not be affected by any insolvency of Assetz Capital.
How do I make a complaint?
You are able to make a complaint through your normal Assetz Capital contact just by speaking to them and explaining the situation. That person will take the details of the issue you have encountered and we will begin to deal with your complaint.
If you prefer, you can provide us with details of your complaint by letter or e-mail instead. Please visit our complaints page for full contact details. - https://www.assetzcapital.co.uk/complaints/
How do I unsubscribe from the mailing list?
If you would like to unsubscribe from our mailing list, please visit your account dashboard where you can change your mailing preferences.
If you’ve forgotten your log in details, please email firstname.lastname@example.org and one of our lender team will help you to unsubscribe.
How does Assetz Capital prevent fraud and anti-money laundering?
Assetz Capital complies with UK regulations on the prevention of fraud and money laundering.
Every borrower is spoken to face-to-face and their trading premises are visited. Assetz Capital undertakes business checks to ensure each business is doing what it professes to do. In addition to this credit searches and Companies House checks are also performed to confirm the authenticity of the business.
What are Assetz Capital's predicted default and loss rates?
Our expected defaults and losses data along with actual defaults and losses data is updated regularly for all investors to view. To see and find out more about how we calculate these figures, please visit our page on DEFAULTS and LOSSES in the key information for investors.
How does Assetz Capital assess potential borrowers?
Assetz Capital has a team of experienced relationship directors who go out and meet potential businesses looking to borrow money. Logic and experience is as important to gauge risk as computers, algorithms, industry averages and credit reports.
For SME borrowers we assess the business in detail from the history of the business, the management team, customers, suppliers and competitors as well as the financial information such as the annual accounts, projects and other such data. Each of these factors carries a risk and Assetz Capital will attempt to highlight where the risk is and what can be done to mitigate it.
There is one primary question over risk. Can the business afford to repay the loan it is asking for? If it cannot repay, then the risk is already too high. If it appears that the business can repay, then these other factors determine if we are prepared to allow the loan to be listed on the platform.
For property development, Assetz Capital uses experienced property bankers to meet the borrower, visit the site and structure loans in such a way as to mitigate risk.
7 day grace period on payments
We allow for a 7-day grace period on payments, as there are occasions when cash flows are delayed in addition to having to allow for weekends and Bank Holidays. A balance has to be struck in order to make the process of monitoring loans both a practical and yet robust proposition and we feel this period is reasonable.
What default interest rate is due to lenders should a loan default and default interest start accruing?
Lender default interest rates vary on a loan-by-loan basis. The typical lender default interest rate will be 3% per annum above the normal interest rate on the loan. Should this differ on any loan then the actual default interest rate for that loan will be noted clearly in the loan documentation.
A. Referrer FAQs
Am I eligible to refer a friend?
You must have completed your registration as an individual and have invested with Assetz Capital to use the refer a friend scheme. This scheme is not available to commercial entities, if you would like more information on joining our affiliate programme please contact email@example.com.
How do I refer a friend?
You can refer a friend directly from dashboard once you have logged in. The easiest way to share your code is to enter the email addresses of your friends or family and press the ‘share code’ button, you even have the option to add a personalised message. Alternatively, you can make a note of your unique referral code located in your dashboard and share it directly.
How much will I earn when I refer a friend?
You will earn £100 when the person you referred invests £1000 or more, within 60 days of your code being activated at the start of their registration.
How much does my referral earn?
Your referral will earn a £50 cash bonus when they invest £1000 or more for a minimum of 12 months (Subject to T&Cs)
I referred a friend before this scheme, do I still qualify?
The scheme only applies to referrals made after the scheme launch 14th September 2018 using your unique referral code.
How do I track my referrals?
As long as your referral gives consent for you to track the progress of their registration it will appear in the refer a friend section of your dashboard. Updates will be taken from a daily snapshot and is not live data . You will also receive automated emails informing of the progress of your referred friends and family. If your refferal does not give consent for you to view their progress, you will only be notified when payment is made for your referral.
Where will the bonus be paid to?
All bonus payments will be paid directly into your cash account on or before the 14th day of the following month your referral has met the scheme's criteria.
Can I refer multiple people to the Assetz Capital platform?
There is no limit to the number of referrals you can make to the Assetz Capital platform however it is subject to a fair usage policy in the terms and conditions.
What if my referral has also received another referral code from another referrer?
In the event of your referral receiving two codes the bonus will be paid to whichever referral code is used at the start of registration.
Can I find out more?
Yes, please read the full terms and conditions here.
B. Referred FAQs
How much will I earn?
You will earn £50 cash bonus when you invest £1000 or more for a minimum of 12 months (Subject to T&Cs).
How will I be paid my bonus?
The bonus will be paid to your cash account on or before the 14th day of following month you have met the scheme criteria.
Is there a time limit to qualify for the bonus?
You must meet criteria outlined in the terms and conditions within 60 days of commencing your registration.
Which accounts qualify for this scheme?
All standard investment accounts (Quick Access, 30-Day Access, Property Secured, Great British Business - Series 2 and Manual Lending) and IFISA wrapped accounts qualify for this scheme. The Cash Account does not qualify. For example, if a loan was repaid to your Cash Account your funds would be uninvested. To be eligible for the £50 cash bonus you will need to ensure that your funds are invested for a minimum of 95% of the 12-month qualification period. To prevent funds being uninvested you can turn on the invest idle funds function.
What happens if I have received multiple referral codes?
In the event of receiving more than one referral code, you are only able to use one, which is at your discretion. Once you have used a referral code you will not be able to change it later or by registering again. Once you meet all the criteria for the scheme, both you and chosen your referrer will qualify for the cash bonus.
Can I also refer a friend?
Once you have started investing on the platform you will then be able to refer other people. Within your dashboard you will be provided with a unique code that you can pass on to friends and family. The easiest way to share your code is to enter the email addresses of the person you want to refer and press the ‘share code’ button.
Can I find out more?
Yes, please read the full terms and conditions here.