Key Account Information
90 Day Access Account
90 days access to your cash
We have designed the 90DAA to provide simple access to your cash with just 90 days' notice (in normal market conditions). The 90DAA 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 90 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 90DAA access speed regularly and have processed well over £1bn of withdrawal requests since the Access Accounts launched.
Variable interest rate
Series 1 of the 90DAA has an introductory, capped, target lender return which is currently 5.75% p.a. gross (before tax and any losses and protected by a discretionary Provision Fund). The interest rate on the 90DAA is variable and can change from time to time. Please note that, unlike Series 1 of the QAA or 30DAA, there is no minimum interest rate for this account.
Please note that you could receive less than this rate of return if the 90DAA'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 90DAA is £1 and there is no maximum, subject to account availability.
Typically, the 90DAA 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 90DAA. 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 90DAA 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 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). Interest and repayments can be automatically reinvested (see below).
All 90DAA 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 90DAA.
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.
Due to the 90DAA target interest rate being higher than either the QAA or the 30DAA, the contributions to the 90DAA Provision Fund will be smaller than the contributions to the Provision Funds of those other accounts. This means that the 90DAA Provision Fund will not grow as quickly as the Provision Funds of other accounts which offer a lower target interest rate. The size of any Provision Fund directly affects the coverage which it can provide in the event of loss.
The cash balance held in the Provision Fund for the 90DAA was £346,000 as at 30 September 2019.
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 Aftermarket
Investors can exit loans in the 90DAA, 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 90DAA. 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 90DAA will aim to continue to automatically balance your loans, so as to maintain the maximum diversification that it can achieve.
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 90DAA 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 90DAA.
The 90DAA 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 90DAA 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.Default & Losses
Normal market conditions
“Normal market conditions” means conditions that are broadly what we have at the moment. Economic conditions are reasonably stable, our lenders are making withdrawals from ‘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. So far all lender withdrawal requests have been carried out when they requested since the accounts opened for investment.
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.