We have designed the QAA to provide the highest possible speed of access to your cash when compared to our wider range of Investment Accounts. We do not impose any minimum term on your investment and make no charge if you withdraw your cash at any time. The QAA is part of the overall Access Accounts (AA).
In normal market conditions, 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 our other Investment Accounts, we maintain a level of cash within the account to satisfy immediate withdrawal demand, please note however that access times cannot be guaranteed. We will publish the recent QAA access speed regularly and have processed well over £1bn of withdrawal requests since the Access Accounts launched.
Series 1 of the QAA has a capped, target lender return which is currently 4.1% 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 3.75% 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 QAA'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 QAA is £1 and the maximum direct investment is subject to a cap per investor, currently set at £200,000. You also have the option to invest any idle funds you have on your other accounts in the Quick Access Account until you need them. There is currently a cap of £100,000 of these swept funds per person and this is independent of any direct investment in this account.
Typically, the QAA 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 QAA. 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.
The QAA automatically 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).
Within your Loan Dashboard, you can choose to set your account to automatically re-invest interest and capital repayments back into your QAA (if it is still open for new investments and subject to the cap per lender). Alternatively, you can transfer this cash into your Cash Account for investment in other loans or Investment Accounts.
For example, if you have set an investment target on a loan or another Investment Account, your cash can be automatically released from the QAA in normal market conditions, in order to permit investment in another account as and when opportunities arise. In this way, your spare cash on the Assetz Capital platform has the potential to earn a fair, risk-adjusted return.
You have the option to invest any idle funds you have on your other Standard accounts in the Standard Quick Access Account until you need them. If you have set an investment target on a loan or another Standard investment account, your cash will be released from the Standard Quick Access Account to permit investment when the opportunity arises. This should happen automatically in normal market conditions but please note that access times cannot be guaranteed. There is a cap set for these swept funds per person and this is addition to any direct investment in this account.
All QAA 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 QAA.
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 QAA was £1.4m as at 31st December 2018. The Provision Fund provides the following coverage for expected losses in this account:
|INVESTMENT ACCOUNT||INVESTMENT ACCOUNT EXPECTED LOSS||PROVISION FUND COVERAGE|
|Quick Access Account||0.58%||4.23x|
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 within the QAA early 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 QAA. 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 QAA 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 QAA 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 QAA.
The QAA 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. If any material changes are required to these Terms, a new QAA Series may be issued in the future, but this would not affect your current investments in 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.
4.1% p.a. gross target interest rate
Rapid access to your cash*
Simple to use
*in normal market conditions
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