Superior liquidity is one of the most significant benefits of investing with ASCF and what distinguishes our current funds from most other mortgage funds in the market.
None of our funds provide loans with terms greater than 12 months and in fact, loans are rarely approved with a loan term greater than 6 months.
The average loan term we provide borrowers is around 4.5 months, and whilst some of our loans are extended, we have only ever approved a handful of loans with an initial 12-month term.
Our short term loans, when compared to other mortgage funds, enable us to offer investors short duration investment terms of 3, 6 and 12 months with full confidence of being able to redeem their investment at maturity if required.
This is because our investment terms are aligned with our loan terms.
Funds which provide investors with investment terms of say 12 months and then proceed to provide borrowers with loan terms of 2 years or more are certainly at greater risk of experiencing a liquidity issue as their investment terms clearly do not match their loan terms. This would make it difficult to redeem their investor funds on maturity if required.
Since inception, all ASCF investors have had their request to redeem funds paid on time.
A modified version of this article appeared in our September 2019 Investor Newsletter – download the full newsletter here.