Property-backed | Fixed-rate | Monthly income
FOLK2FOLK Business Loan Investments
Our Business Loan Investments connect your money directly with credit-worthy British businesses, with every loan secured against UK property.
You’ll earn fixed-rate monthly interest payments, while your money helps small regional businesses start, grow, and diversify.
product benefits
How our investments work
As a FOLK2FOLK investor, you have full visibility of all our available investment opportunities and the key terms before you decide where to invest. This product offers you the opportunity to support small British businesses while receiving attractive fixed returns in the form of monthly income.
- Minimum investment is £20,000
- Monthly income is typically 8.50% p.a.
- Terms from 6 months to 5 years
- Each loan is secured with a first legal charge against UK property. Typical LTV of 60%
suitability
Is this product right for you?
FOLK2FOLK investments are designed for investors who meet certain eligibility requirements. These checks are in place to ensure suitability and to confirm that you have the right understanding of the risks before committing capital.
To be eligible, you must:
- Be a solely UK tax resident
- Be aged 18 or over
- Invest a minimum of £20,000 (individuals) or £250,000 (entities)
- Pass our Appropriateness Test and Client Categorisation Check
Common questions
Investor questions answered
There are no fees to invest via FOLK2FOLK, you receive the full interest rate stated for each loan investment. However, there is a fixed fee of £250 if you choose to list your investment for sale early via our secondary market.
No. An IFISA offers a tax-free wrapper for your returns but carries the same risks as investing directly in business loans.
As with all investments, your capital is at risk. Loans are secured against UK property with a maximum loan-to-value (LTV) of typically 60%. However, borrower repayment is not guaranteed, and security may not fully cover the loan in the event of default. Additionally, peer-to-peer lending is not covered by the Financial Services Compensation Scheme (FSCS).
If a borrower fails to pay interest or to repay the capital, we step in and assess all available recovery strategies to determine the best way forward to deliver good outcomes for our investors.
Our Secondary Market gives investors the option to list their investments for sale before the end of the loan term. We can’t guarantee a sale, but historically, investments have sold on average within 0.8 days. Sales are always subject to investor demand.
Yes. As well as investing in your own name, you can invest through a business, company, or certain types of pension fund (such as a SIPP or SSAS if your provider is in agreement). Minimum investment levels and eligibility checks still apply, and we’ll guide you through the registration process to make sure everything is set up correctly.
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Resources to help Investors
Explore helpful guides and resources to support your investing journey — from understanding risk and liquidity to learning how FOLK2FOLK’s process and products work.
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