Close risk warning

As with most forms of investment, peer-to-peer lending carries a degree of risk to your capital; in this case, if borrowers were unable to repay their loans. At Assetz Capital, we seek to reduce this risk to our investors by taking asset security on every loan, with the added benefit of a discretionary Provision Fund for some of our investment accounts. Investment Account target interest rates should be considered along with the relevant Investment Account expected defaults & losses information. Past performance does not guarantee future performance. We recommend that prospective lenders read the Key Investor Information pages before investing.

The Green Energy Income Account

7.00% p.a. target gross return*

Credit Awards Best Peer-to-Peer Lender 2016 defaqto 5 star - peer to peer lending 2016

*Interest is quoted gross and is capped at the quoted rate although actual returns could be lower. Annualised projected return after expected losses for the GEIA account is currently 7.00% gross (based on stress testing of the GEIA's Provision Fund - see here for further information). Past performance does not guarantee future performance. Access time related to withdrawal in normal market conditions. This is an investment in peer-to-peer loans – it is not a bank account. Capital is at risk.

What is the Green Energy Income Account?

The Green Energy Income Account (GEIA) allows you to automatically diversify your funds in order to help you spread risk. Additionally, many of the renewable energy projects also benefit from government subsidies such as Feed-in Tariffs.

Realisable asset security is taken on all loans and the account has an added protection of a discretionary Provision Fund.

Watch the video for more information.

Breakdown

Green Energy Income Account
Target interest rate 7% p.a. gross* and capped
Who do you lend to? British business with property security available
Investment of funds Automatic as new loans are released
Provision fund Yes
Diversification Automatic
Access to your money No fee for early withdrawal – exit possible subject to demand from other investors. Otherwise you will receive your cash back over the term of the loans held within the account which could be over a period of up to five years.
Notice period None
Invest from £1
Get started
Target
interest rate
Who do you
lend to?
Investment
of funds
Provision
fund
Diversif-
ication
Access to
your money
Notice
period
Invest
from

30-Day Access
Account
4.25% p.a. gross* and capped
British businesses with realisable security Automatic as new loans are released Yes Automatic No fees for withdrawals and access to funds after 30 days' notice, in normal market conditions. 30 days £1 Get started

Quick Access
Account
3.75% p.a. gross* and capped
British businesses with realisable security Automatic as new loans are released Yes Automatic No fees for withdrawals and with very fast access to funds under normal market conditions. None £1 Get started

Great British Business Account
7% p.a. gross* and capped
British business with property security available Automatic as new loans are released Yes Automatic No fee for early withdrawal – exit possible subject to demand from other investors. Otherwise you will receive your cash back over the term of the loans held within the account which could be over a period of up to five years. None £1 Get started

Manual Loan Investment Account
5.5-15% p.a. gross*†
Any of our secured loans with available units – your choice Manual but with ability to target specific loans automatically No Manual Partial or full redemption possible via the Aftermarket, subject to demand from other lenders – no fee. None £1 Get started

Why invest in the Green Energy Income Account?

The Green Energy Income Account (GEIA) allows investors to automatically invest in business loans to renewable-energy projects that benefit from government subsidies, such as Feed-in Tariffs. These projects include wind, solar and wave energy-conversion, but exclude fossil fuels and nuclear power.

The GEIA offers a target, capped interest rate for investors of 7% gross per annum (before tax and any loan losses). This account also benefits from strong, realisable asset security (usually land or other 'real' assets) for all loans and automatic diversification across multiple loans, plus the added protection of a separate, discretionary Provision Fund.

Green Energy Income Account

Typically, GEIA loans last for three years. All GEIA loans are secured (against land, onshore renewable-energy assets and/or future income streams) and have passed Assetz Capital's strict credit checks.

Not only is the GEIA a fast and simple account for UK investors, it also helps carefully vetted green businesses to grow and thrive. This means that GEIA investors not only earn a fairer, risk-adjusted return on their money, but they also help to boost the UK economy, create jobs and protect our precious environment.

How it works: Green Energy Income Account

  • The GEIA offers a capped, target lender return for investors of 7% P.A. gross (before tax and any loan losses and protected by a discretionary Provision Fund). We do not charge any fees to GEIA investors.

    Please note that you could receive less than this rate of return if the GEIA's Provision Fund were exhausted and then loans were to default or borrowers were no longer able to repay their loans.

  • The minimum investment into the GEIA is £1 and there is no maximum, subject to loan availability.

  • Included in the GEIA are loans to UK renewable-energy businesses that are secured with first legal charges over land, onshore renewable-energy assets and/or future income streams.

    Typically, GEIA loans should be repaid within three years, based on their contracted repayment dates (their due dates for repayment). However, investors can flexibly sell part or all of their loans early via our Aftermarket, subject to demand from other investors at that time (see below).

    The maximum loan-to-value ratio for individual loans included in the GEIA is 71% of the value of any assets used to secure a loan. In addition, these loans benefit from a separate, discretionary Provision Fund (see below).

    The GEIA 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 GEIA will aim to invest approximately 2% of account funds into each loan. Likewise, with only five suitable loans, the GEIA will aim to invest approximately a fifth (20%) of account funds into each loan.

    What's more, by investing in the GEIA, your money helps to boost the UK economy by supporting the growth of carefully vetted British businesses, as well as helping to protect our environment.

  • Interest (income) is usually earned monthly, but not all loans pay monthly interest, so interest may be accrued on various loans for payment at the same time as the loan is repaid. You will also receive capital repayments from time to time, based on loans' contracted repayment dates (their due dates for repayment). The typical period for GEIA loans is three years.

    Interest and repayments can be automatically reinvested back into new GEIA loans (for as long as the GEIA remains open; see below). Alternatively, setting your account to pay capital repayments into your Cash Account will ensure that any repayments made will not be reinvested into new GEIA loans.

  • All GEIA 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 GEIA. Any loan interest paid by borrowers that is above the 7% target rate for this account, minus any contractual fees due to Assetz Capital, will be used to fund the Provision Fund.

    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 Provision Fund is targeted to provide a coverage multiple of 3x the expected losses over the life of the loans within the account even in challenging economic conditions. The expected losses on the account (prior to any coverage by the Provision Fund) are calculated after applying extreme stress to the security taken to protect each loan and we have used the Bank of England 2016 Stress test assumptions to that security. The Bank of England Stress tests are designed to ensure UK Banks can withstand the worst expected future economic conditions and are a sound and prudent basis for this test. We then calculate a multiple of 3x those potential losses and that is the target for the Provision Fund funding. We also publish the current coverage ratio and that is also 3x as at 24/6/16. 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.

    For more details, please see the main Provision Fund page.

  • At Assetz Capital, we take realisable asset security on all loans, with a view to protecting our clients' investments. Unlike lightly secured or unsecured lending, we don't just rely on personal guarantees. Instead, we take charges over land, onshore renewable-energy assets and/or future income worth considerably more than each GEIA loan. This security and the above-mentioned Provision Fund help to minimise the potential for investor losses.

    All GEIA loans are secured against realisable assets, with security taken to ensure that any asset's value is at least 141% of the associated loan's amount. In other words, the maximum loan-to-value ratio for individual loans included in the GEIA is 71% of each secured asset's value.

  • It is quick, simple and straightforward to fund your GEIA today: you simply move money into and out of your account by bank transfer. Using 'faster payments', this service is almost instantaneous, but other transfers can take up to three working days. There is no minimum transfer amount for bank transfers.

  • Within your Loan Dashboard, you can choose to set your account to automatically re-invest interest income and capital repayments back into your GEIA (if it is still open for new investments). Alternatively, you can transfer this cash into your Cash Account for investment in other loans or Assetz Capital Investment Accounts.

  • Investors can exit GEIA loans early via our Aftermarket, subject to demand from other investors at that time. Via this Aftermarket and at your request, the GEIA will aim to sell part or all of your investment at any time, subject to continued demand for these loans from other investors.

    What's more, you have the ability to add to or reduce your investment in your GEIA. 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 GEIA will aim to continue to automatically balance your loans, so as to maintain maximum diversification.

  • Via your Loan Dashboard, you can track, monitor and manage all of your Assetz Capital investments through our comprehensive and market-leading portal.

    In addition, you can invest directly in the underlying loans that the GEIA 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 Loan Investments Account (MLIA) 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 GEIA.

  • The GEIA 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 over time to your Cash Account or to another account of your choice. If any material changes are required to these terms, a new GEIA Series may be issued in the future, but this would not affect your current investments in previous Series.