Assetz Capital re-jigs accounts due to lack of loan flow
ASSETZ Capital has paused new investment into its Green Energy Account (GEA) and is replacing its Great British Business Account (GBBA) with a new version, due to a lack of loans.
The peer-to-peer business lending platform said the reduction in renewable energy subsidies meant its GEA product was not currently viable as there are no current loans available.
The platform said it plans to deliver new loan flow into the GEA and hopes to reopen the account at the current seven per cent target rate early in the new year.
Meanwhile, its GBBA offering will be replaced by a series two account on Wednesday.
Assetz Capital said it is targeting slightly lower risk loans in the general secured business loan market, which has resulted in lower interest rates to compete in the marketplace. This has cut off loan flow in the GBBA account at its current seven per cent target payable rate.
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The new series 2 GBBA account will pay 6.25 per cent interest, rather than seven per cent in the first version. It will still target low-risk secured business loans, but will look at a greater range to boost returns.
“The GBBA series 2 has been designed to deliver a very similar profile of loans as the original, but more tailored to market conditions to allow a greater number of loans to qualify for the account,” an update to investors said.
“Pausing the GEA and moving the GBBA to a new series 2 rate has been a difficult decision, but one that we feel is right in both the short and long-term.”
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