Thinking of using the Assetz Capital P2P lending platform? Not sure if it’s right for you? Find out in our Assetz Capital review for 2019, and get all the details you need.
What Is Assetz Capital? Understanding The Basics
Assetz Capital is a P2P lending platform. It’s based in the United Kingdom, and it was first founded in 2012. Since then, it has grown significantly. As of this review, this platform had more than 35,106 investors. In total, it has raised funds exceeding £849,100,000. In total, it claims to have returned more than £87.5 million to investors in the form of interest. This makes it one of the largest UK-based P2P lending platforms out there.
Primarily, Assetz Capital focuses on real estate and business loans. You can lend to individual small businesses, as well as property developers and investors. You can pick-and-choose your loans. Or, if you want, you can use an automated tool to pick a portfolio that matches your risk tolerance. We will discuss that feature further in the next section.
Returns at Assetz Capital: Relatively low, but consistent
Overall, the returns at Assetz are pretty good. However, they have been falling in recent years. You can usually find loans ranging from between 4-12% interest. The interest rate you get primarily depends on your risk tolerance.
You can lend to individual companies manually. There are always quite a few loans available. Be careful, though. The highest-yielding loans are often unsecured business loans. If the borrower defaults, you may have trouble recovering your principal.
You can also invest in some automated lending accounts, like the Quick Access (4.1%), 30-Day Access (5.1%) and 90-Day Access (5.75%) accounts, and Property Secured (5.5%) accounts. Each account has different requirements and benefits. The Property Secured account, for example, invests only in loans that are secured with property collateral, keeping your money safer.
Diversification at Assetz Capital: Plenty of loans on offer
Assetz Capital used to offer a wider selection of business loans, but now primarily focuses on real estate loans. If you ask us, that’s a good thing. Real estate loans are safer, more secure, and better than business loans if you want guaranteed returns and less risk.
There may not be a huge diversity in the types of loans offered. But you can find a good range of loan terms and durations. In addition, new loans are issued every day. This lets you pick and choose the ones that are right for you.
However, you won’t find a diversity of regions here. As mentioned, Assetz Capital only serves UK-based businesses and UK-based investors. If you want to spread your investments across Europe, you won’t be able to do so with the Assetz Capital P2P lending platform.
Assetz Capital features: Secondary market, auto-invest & more
Assetz Capital has some great features which we like. It has a good variety of loan accounts, including the “black box” automatic investment accounts which allow you to take a hands-off approach to investing.
There is also a very active secondary market. You can buy and sell loans really quickly. This provides you with more asset liquidity. In addition, there are no fees charged when you sell a loan. This is a great feature. Most other top P2P lending platforms have some kind of fee associated with buying and selling loans. But because Assetz Capital doesn’t, it’s easy to sell loans and reconfigure your portfolio.
In addition, it has a number of useful tools and dashboards that can help you understand your portfolio value. It’s easy to generate tax statements and other documents and see how well your investments are performing. Another good feature is that it supports IFISA investing. You can invest up to £20,000 tax-free in any of its accounts, thanks to the Innovative Finance ISA scheme.
There are also some good cash-back opportunities for new investors, such as £50 back when you invest at least £1,000 into the Assetz Capital P2P lending platform.
Assetz Capital user experience: Smooth, simple UI for a great experience
We have absolutely no complaints when it comes to using Assetz Capital. The website performs quickly, and we never had any unexpected outages or downtime. It’s extremely easy to navigate and use. You can do things like open an account, transfer funds, and withdraw interest in just a few clicks.
In our Assetz Capital review, we’ve found that it provides one of the best user experiences of any P2P lending platform on the market. Some competitors could learn a lot from the simplicity and great design of Assetz Capital. If you have been turned off by the complexity of some other P2P platforms, Assetz Capital is a great choice.
Risks & recommendations for using Assetz Capital
Like investing in any other P2P lending platform, using Assetz Capital has some risks. You may lose your investment if a borrower defaults. However, Assetz Capital caps LTV ratios at 70% and secures its loans with business assets or property to help prevent this.
Given that it only lets you invest in real estate and a handful of business loans, it may not be the best option if you want a diversity of loans to preserve your capital. Still, it’s a good option. The overall risk of investing is relatively low, especially for lower-interest property loans.