Key Account Information
30 Day Access Account
The Provision Funds we offer do not give you a right to a payment so you may not receive a pay-out even if you suffer loss. The funds have absolute discretion as to the amount that may be paid, including making no payment at all. Therefore, investors should not rely on possible pay-outs from the Provision Funds when considering whether or how much to invest.
Please see also our Provision Fund policy
|Key information in relation to loans||Minimum||Maximum|
Lender Interest Rate on loans at origination - rate per annumNotes:
This Account invests in all of the loans originated by Assetz Capital. The lender interest rate on a loan is determined by various factors described in more detail here. We currently only originate loans with a lender interest rate of 6% per annum or more. Some loans may earn additional lender interest if the loan defaults.
|4.5 %||13 %|
Bridging loans have terms of as little as 1 month. Our Buy to Let and Commercial mortgages have maximum terms of 5 years.
|1 month||5 years|
Target Interest Rate (likely actual return) per annum after Provision Fund Contributions
This target rate is expected to be achieved after taking into account the impact of defaults. This target rate is not subject to further fees, but is before the impact of taxation - you should see the tax statement page for further information on the impact of taxation.
Assetz Capital Fees charged to borrowersNotes:
There are no formal upper or lower limits to the fees Assetz Capital charges to borrowers for arranging and managing a loan, but the current range of fees at orgination for different fee types are shown here. Assetz Capital may earn additional monitoring fees if the loan defaults.
|Arrangement fee (net of broker fees) - % of loan facility||0 %||7.5 %|
|Monitoring fees paid to Assetz Capital - % per annum based on loan outstanding||0 %||5.5 %|
|Exit fees - % of loan facility||0 %||2 %|
Credit Risk Profile - Risk Categories of loans at origination as proportion of portfolio (rolling 12 months)Notes: An explanation of our Risk Categories can be found on our Credit Risk page here
|Low Risk||0 %||30 %|
|Medium Risk (covering Low Medium, Medium and High Medium)||0 %||90 %|
|High Risk||0 %||20 %|
Provision Fund performance
As at 31 August 2020
|Value of investment outstanding
Notes: In line with the Regulations we have added back amounts paid to Lenders by the Provision Fund
|Value of Provision Fund
Notes: In line with the Regulations this is stated after the deduction of any liabilities or pay outs agreed but not yet paid – principally amounts ring-fenced to cover expected losses of loans subject to a Credit Event (as described on the Credit Risk page).
|Value of ring-fenced amounts held in addition to Provision Fund value
These ring-fenced amounts provide Provision Fund coverage for specific loans within the Access Accounts - please see our Provision Fund Policy for a full explanation of how this works. These ring-fenced amounts are not counted as part of the main Provision Fund as they are no longer available for use against loans which may default in future.
|Proportion of outstanding investments paid out of Provision Fund
Notes: This is the value of payments to Lenders from the Provision Fund which have been added back to the value of investments outstanding divided by the total value of investments including those payments.
30 days access to your cash
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 before you can serve notice in this investment account 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 Access Accounts 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.
As a result of Coronavirus, withdrawals from the Access Accounts are slower than usual as we are no longer operating in Normal Market Conditions. To give investors greater control over their personal liquidity, we have introduced the Access Account Marketplace. This continues to automatically match those lenders looking to buy loan holdings with those looking to sell, by setting ‘Invest’ and ‘Withdrawal’ Instructions, but also gives lenders a new option to apply a discount to their loan holdings which may potentially speed up their withdrawal.
Withdrawal Instructions from this account will be set at par value (0% discount). However, investors also have the option to transfer their loan holdings which have served their notice period to the Quick Access Account (QAA). Then, if desired they can apply a discount to those QAA loan holdings which may potentially speed up their withdrawal, depending on demand from other investors. For more information see ‘Using the Access Account Marketplace’ section.
Variable interest rate
Series 1 of the 30DAA has a capped, target lender return which is currently 4.00% 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 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, until your withdrawal request has been fulfilled.
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.
When changing your investment level in your account, the 30DAA will aim to automatically balance your loans, so as to maintain the maximum diversification that it can achieve.
Interest and repayments
Interest from loans 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). Capital repayments will automatically be reinvested wherever possible, but you have the option to choose to either re-invest or withdraw any interest payments received (see below).
Reinvest or withdraw your interest
Within your Loan Dashboard, you can choose to set your account to automatically re-invest interest payments back into your 30DAA (if it is still open for new investments and subject to the cap per lender). Investments into the Access Accounts now operate via the Access Account Marketplace. This means that all new investments, including reinvestment of interest will take advantage of the biggest available discount to loan holdings in the Access Accounts. You also have the option to set a target minimum discount to reinvest your interest. Please see the ‘Using the Access Account Marketplace’ section for more information.
Alternatively, you can transfer these interest payments to your Cash Account for withdrawal or investment into other loans or Investment Accounts.
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.
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 the 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.
Using the Access Account Marketplace
The Access Account Marketplace automatically matches those investors looking to buy loan holdings with those looking to sell, by setting ‘Invest’ and ‘Withdrawal’ Instructions.
Investors can sell all, or a proportion, of their 30DAA holdings via our Access Account Marketplace, 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. By setting a withdrawal instruction, the marketplace will seek to withdraw loan holdings from the 30DAA at par value (0% discount).
However, investors also have the option to offer a discount to their loan holdings, should they wish to do so, as this may create a quicker withdrawal (subject to demand from other investors at the chosen discount). To use the discounting functionality, investors must transfer the loan holdings they wish to withdraw to the Quick Access Account (QAA) once the 30 days’ notice has been served. It is then possible to create withdrawal instruction and optionally apply a discount. Please note that funds transferred to the QAA will earn the QAA target rate until the withdrawal at a discount can be matched to an investor and processed.
For those looking to invest in the 30DAA, by default, the marketplace will seek to invest at the best available discount, or at par value if there are no discounts available. However, if desired investors have option to set a minimum target discount invest instruction which will be automatically matched with sell instructions that meet their criteria. It’s important to remember if you choose to invest at a discount, some or all of your funds will not be invested and become interest bearing until a matching withdrawal instruction is found.
You can find out more about the Access Account Marketplace by clicking here.
Managing your account and manually investing in loans
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.
Defaults and losses
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.Defaults & Losses
Normal market conditions
“Normal market conditions” means economic conditions are reasonably stable, our lenders are making withdrawals from the ‘Access Accounts’ (Quick Access, 30 Day Access & 90 Day Access Accounts) in the normal course of business and other lenders are willing and able to buy their loan units through those accounts and others that we offer. Our 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.
However, past performance doesn’t guarantee future performance and abnormal market conditions could possibly 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. Therefore if 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 (through monthly repayments made by borrowers or by loans naturally reaching the end of their term for full repayment). The 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 can’t guarantee access times in all possible economic scenarios and we want our lenders to understand that.