Wanted to Invest your Money?
As an alternative to owning bricks and mortar, you may be attracted to a high return on your capital with a short-term exit strategy – with an entry level of only £10,000 – Loan Notes are becoming increasingly popular with seasoned investors.
Firstly, let’s look at the investment highlights of this product and below we explain in detail exactly how this alternative investment works.
- This investment is IOU’s from a company to an investor.
- You are making a loan to the company and the company is agreeing to pay it back with a fixed amount of interest.
- This investment opportunity can be secured or unsecured – with secured being the safer option.
- This investment opportunity are a Financial Promotion under section 21 of the Financial Services and Markets Act 2000(FSMA). This means it has been approved for individual property investors.
- Financial Promotions should have Section 21 sign-off by a company that is authorised and regulated by the FCA.
- This investment is for the short term. e.g. one year.
- The investment term starts as soon as the investment amount has been paid in full.
- Interest options are normally a monthly or deferred to the end of the investment term depending on the package chosen.
- At the end of the investment term, your initial capital is returned in full, along with any interest owed.
- This investment products are designed for investors that have enough knowledge and experience to make an evaluation of the product, including its risks, and merits.
- Anyone can meet the criteria. If you have invested in the past: property, stocks, shares (AIM) no matter how small – even if you don’t hold the investment.
It is dependent on the company you chose to subscribe with. This investment is popular in the real estate development industry, as developers have valuable assets to secure the loans against. However loan notes are used in a variety of industries.
A security trustee is appointed to represent the interests of the Investment holders. A secured Investment will have a fixed first legal charge and this is held by the security trustee when land or buildings are purchased. Some companies will do a double layer of security such a mortgage debenture over the assets – the security trustee will hold this too, on behalf of the Investment holders.
Like with all investments it is crucial to evaluate the risks, along with the merits before making any decision to invest. It is very transparent in the Information Memorandum what the risks are.
We carry out all necessary check & due diligence on the companies providing this investment before offering this to our investors.
- Verbally speak to our team, they will assist you with all details and send the information pack which will have all information on.
- Read through the information pack.
- Confirm to our team the Investment value you would like to invest.
- You will need to complete an application form with your details.
- Whether you are buying as an individual or through your company, specific AML (Anti-Money Laundering) documents must be supplied and an AML check is carried out within 48 hours.
- Upon a successful AML check, the investment application is paid in full, directly to the company.
- Investment Certificate (in your name) is issued and sent directly to you after payment is received.
- Your investment term starts immediately
- Regular company updates are sent to you.
- Unsecured loans are not secured against the company’s assets. They potentially pose a higher risk, but often come with a higher return.
- Secured loans are secured against the assets of the company borrowing the money. While there is still a risk involved, the asset can be used to pay off debts in case the company defaults.
- The company’s assets or collection of assets are pledged by the borrower to give comfort to you (the lender) that the loan will be repaid.
- Typically, the security is a fixed charge of assets that are within the specific investment opportunity that has been invested.
- With a secured investment opportunity an independent security trustee will be appointed to represents the interests of the investment holders
Double layer of security – legal charge and fixed and floating charge over assets
Investment term starts immediately
From only £10,000 cash input
Interest preference: up-to 25% paid monthly or annually depending on the package chosen.
A Security Trustee represents the interests of the Investment holders
Minimum term 1 year Investment opportunity to 8 years maximum term.