As the traditional banks continue to be less supportive in providing finance to many small and medium enterprises (SMEs), there’s increasing interest in peer-to-peer lenders willing to bridge the gap. Assetz Capital is one such P2P lender that we’ll review in this article.
Who is Assetz Capital?
Assetz Capital is the leading property-secured business P2P lender in the UK and Europe. They offer secured business loans to small and medium SMEs and are the second biggest general business P2P lender, behind Funding Circle. They offer loans to property developers and SMEs in the UK, funded by individuals and several institutional investors and companies.
Assetz Capital has a minimum investment amount of £1 and is open to international investors. However, you need a UK bank account and if you don’t have one, you can open it at Transferwise. There are no fees for investors and all Assetz Capital investment accounts are protected by a provision fund except the MLIA.
30 Days Access Account
For the most part, this account is hands off. You can deposit a small amount which should be credited in your account in less than two hours. The new 1% cashback offer on Assetz Capital 90-Day Access Account replaced the initial customer promotion. Investors who took advantage of this promotion will still receive their cashback payment.
Quick Access Account
The quick access account offers a 3.7% target rate, designed to provide immediate access to cash for investors in normal market conditions. There’s over £19 million invested in this account.
Other account types include the Green Energy Income Account (GEIA) with a 7% target rate, the Great British Business Account (GBBA) with a 7% target rate, and the Manual Loan Investment Account (MLIA) with 5.5% to 18% gross rate.
The Access Accounts are popular as over half of the investors utilise them and they’re approaching £170 million in investments. The lender has processed over £1 billion of withdrawals to-date from the Access Accounts.
Despite the underlying loans within the Access Accounts being between one month and five years in duration, the high investment flow into the accounts has allowed users to withdraw funds on time consistently. But supply and demand can vary while exit times are not guaranteed.
Whom Does Assetz Capital Lend To?
The lender comprises two divisions: Assetz SME Capital and Assetz Development Capital.
Assetz SME Capital provides secured loans to SMEs that have been trading for more than two years.
Assetz Development Capital provides secured lending to established property developers who have been trading for more than two years. Additionally, they offer “lend to let” secure loans to overseas clients wishing to invest in the buy to let property sector in the UK.
How Can You Use the Loan?
For Assetz SME Capital, loans are available to assist in business projects and future growth. For Assetz Development Capital, the preference is to lend for prime property purchases in prime locations. In the case for “lend to let” scheme, funds are availed towards buying quality buy to let properties.
With a loss rate of 0.46%, Assetz Capital ticks the correct boxes for a safe investment in the peer-to-peer lending for first-time investors. However, some Assetz Capital reviews online are discussing how the platform is confusing and frustrating, with some investors unhappy with the returns and manual investment process involved in some of the products.