We have designed the 30DAA to provide simple access to your cash with just 30 days' notice (in normal market conditions). The 30DAA is part of the overall Access Accounts (AA). We do not impose any minimum term on your investment and make no charge if you request withdrawal of your cash. Following the 30 day period, transferring funds between Assetz Capital Investment Accounts should be possible within seconds, while complete withdrawal of funds from our platform should happen within two working days, although access times cannot be guaranteed. Unlike some of our other Investment Accounts we maintain a level of cash within the account to satisfy withdrawal demand. We will publish the recent 30DAA access speed regularly and have processed well over £1bn of withdrawal requests since the Access Accounts launched.
Series 1 of the 30DAA has a capped, target lender return which is currently 5.1% p.a. gross (before tax and any losses and protected by a discretionary Provision Fund). This cap may vary from time to time, but we will never reduce the capped, target interest rate below 4.00% a year (before tax and any losses) in this account Series.
Please note that you could receive less than this rate of return if the 30DAA's Provision Fund were exhausted and then loans were to default or borrowers were no longer able to repay their loans.
The minimum investment in the 30DAA is £1 and there is no maximum, subject to account availability.
Typically, the 30DAA may contain short-term secured business loans of less than one month through to five-year loans. Hence, loans included within this account should typically be due to repay between one month and five years.
All secured business and property development loans that are approved by Assetz Capital may be held within the 30DAA. Should you choose to invest in this account, your investment will be used only to fund loans that have received our credit approval, will be diversified across a range of secured business loans and will also be protected by a discretionary Provision Fund. Please also see Asset Security below.
Your investment will be actively reinvested into new loans upon receipt of capital and interest, prior to any withdrawal date being reached.
The 30DAA auto-diversifies the funds you allocate to it across many matching loans at any given time, subject to availability. This spreads your risk across the widest possible range of loans that we have available in the account.
Interest (income) is calculated on a continuous basis and usually paid into your account on the first day of each month. You will also receive capital repayments from time to time, based on loans' contracted repayment dates (their due dates for repayment). Interest and repayments can be automatically reinvested (see below).
All 30DAA investments benefit from automatic inclusion in a separate, discretionary Provision Fund intended to help to protect investors from income delays or income and/or capital losses within the 30DAA.
The Provision Fund that protects this account seeks to protect against any potential capital losses if, in the event of a loan default, the security taken on that loan does not cover the outstanding balance due on that loan.
The cash balance held in the Provision Fund for the 30DAA was £2.2m as at 31 March 2019. The Provision Fund provides the following coverage for expected losses in this account:
|INVESTMENT ACCOUNT||INVESTMENT ACCOUNT EXPECTED LOSS||PROVISION FUND COVERAGE|
|30-Day Access Account||0.48%||5.32x|
In order to provide additional protection to our clients’ investments, at Assetz Capital we always take realisable asset security on all our loans. This security takes the form of charges over property, equipment, or other assets professionally valued to be worth more than value of the loan. Within the loan details we will quote a Loan to Value (LTV) (or Loan to Gross Development Value (LTGDV) for construction/development loans) in order to provide investors with an indication of the loan value versus the eventual expected security value.
The value of security can vary across the lifetime of a loan. This may be through ordinary course of business during the natural course of a development / construction project or it could be where security is lost or harmed. Details of security taken are provided in each credit report and, wherever possible, any third party independent valuations are also provided.
In the case of a development loan / construction project we will provide details of the loan to value when the loan is initially drawn and the forecast end loan to value post completion of all work. The transition of value throughout a development is not, however, linear and will vary according to the development and is also reliant upon continued funding of the development each month. As such, the loan to value during the course of a development / construction project may exceed the maximum opening and closing values quoted. In the event of a loan failing to repay in full this security can be called upon to settle the outstanding balance of the loan, providing a far greater chance of a full recovery in contrast to lightly secured loans protected by just a personal guarantee, or completely unsecured loans.
This security and the above-mentioned Provision Fund is intended to help reduce the potential for investor losses.
Investors can exit loans in the 30DAA, following provision of the required notice, via our Aftermarket, subject to demand from other investors at that time and also subject to the loans being either tradeable or having their expected loss (if any) being fully ringfenced in the Provision Fund.
What's more, you have the ability to add to or reduce your investment in your 30DAA. After your initial purchase, if you would like to increase or decrease the amount invested, then you may do so, subject to availability and demand. When changing your investment level in your account, the 30DAA will aim to continue to automatically balance your loans, so as to maintain the maximum diversification that it can achieve.
Via your Loan Dashboard, all of your Assetz Capital investments can be tracked, monitored and managed through our comprehensive and market-leading portal.
In addition, you can invest directly in the underlying loans that the 30DAA invests in, subject to the availability of these loans in the Aftermarket, but without the protection of the Provision Fund. You can do this by using the Manual Lending Account (MLA) and directly selecting these individual investments. Without the protection of the Provision Fund, these manually selected loans may deliver higher or lower net returns after any losses than the 30DAA.
The 30DAA will be open for an undefined period. However, at some point, the Account Series may be closed for investment and, therefore, all capital and interest received back on loans within this Account will be repaid to your cash account or to another Account of your choice over time, as the underlying loans repay. If any material changes are required to these Terms, a new 30DAA Series may be issued in the future, but this would not affect your current investments in a previous Series.
For more information on our default and loss performance data and more detail on our methods of analysis and risk management please see our Defaults and Losses statistics and explanation page.
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), 30 Day Access Account (30DAA) or 90 Day Access Account (90DAA), together known as the ‘Access Accounts’, in the normal course of business and other lenders are willing and able to buy their loan units 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 cannot always 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 a 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.
5.1% p.a. gross target interest rate
30 days' notice to access your cash*
Simple to use
*access possible in normal market conditions