Assetz Capital is reporting that a key promotional interest rate increase is having the desired impact. According to the peer to peer lender, £10 million in new investment has been received in just three weeks.
The rate increase went live on 13 April giving new investors a capped return of 4.75% per annum gross (before allowances for tax or any possible losses). Investments in the 30 Day Access Account made before this date will benefit from the increased target rate for up to 90 days.
“Due to strong borrower demand we decided to temporarily raise the target rate on our 30 Day Access Account. This has gone against the grain in a period where many P2P platforms have been dropping rates. It’s been a roaring success as new investment in peer-to-peer loans has flowed into the account,” said Assetz Capital CEO Stuart Law.
The 30 Day Access Account allows lenders to invest automatically in both short and long-term loans and interest is paid monthly. Assetz Capital says that many investors choose to invest long term in these accounts but appreciate the prospect of relatively easy access to their money in normal market conditions. Assetz Capital does not guarantee immediate access to cash though but the account retains a material amount of cash to provide investors with liquidity. Assetz Capital says that over £200m of withdrawals have been facilitated since launch across all of the Access Accounts and all those have been delivered on the expected time and date – although past success definitely is not a guarantee of future performance.
“The start of 2017 has been an incredibly successful one for Assetz Capital and both our investor and borrower demand is increasing exponentially. We expect to facilitate £250-350m worth of lending this financial year and will be funding £30-40m per month shortly,” added Law.
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