FOLK2FOLK Launches “Local” ISA
FOLK2FOLK, the national, award winning, Peer-to-Peer lending platform for local and rural business today announces the launch of its Innovative Finance ISA (IFISA), giving investors (referred to as Lenders) the opportunity to support British businesses within their local area whilst earning tax-free interest on their FOLK2FOLK loans.
Jane Dumeresque, CEO FOLK2FOLK: “We’re delighted to give our Lenders the opportunity to earn tax-free interest from their FOLK2FOLK loans. It’s something our Lender community has asked for since we began our journey in 2013 and it’s something to be excited about.
The launch of our IFISA comes at a time when investors are starved for yield, with most interest rates set well below inflation. At FOLK2FOLK we’re able to offer consumers an alternative income opportunity; one that now provides welcome tax-free interest earned through the ISA wrapper. We believe our IFISA returns will not only offer a source of monthly income for investors, enabling them to support their lifestyles and achieve their financial goals but also encourage more people to support and lend to local UK businesses. We offer our Lenders great interest rates within a transparent structure, a great feeling of local participation and the opportunity to make a huge impact on the communities in which they live.”
Depending on the loans available for investment, FOLK2FOLK’s IFISA Lenders will earn either 5.5% p.a or 6.5% p.a tax-free interest on capital whilst all the time supporting local and rural business in the UK. Interest is paid monthly and directly to Lender bank accounts. An annual administration fee of 1% plus VAT will be payable by Lenders to set up and manage their IFISA through FOLK2FOLK. Full details of the FOLK2FOLK IFISA are available on the FOLK2FOLK website www.folk2folk.com/isa
The FOLK2FOLK IFISA is currently only available to existing Lenders for the investment of new money. New Lenders will be able to access the FOLK2FOLK IFISA from the 1st August and can register their interest on FOLK2FOLK website now. The platform will also soon be accepting “transfers in” of existing ISA funds held with other providers. A date for this will be announced in due course.
With a minimum investment of £20,000, the FOLK2FOLK IFISA will require Lenders to use their full 2017/18 ISA allowance. All FOLK2FOLK business loans are secured against land/property.
“The businesses our lenders support – those local, rural and entrepreneurial businesses – are the businesses that knit the very fabric of our society together. They drive past them every day; they eat in them, buy from them, stay in them and, in many ways, make them possible. They’re part of a growing national movement to help build and sustain financially and socially successful local communities, helping to create jobs, increasing opportunity and encouraging rural diversification and growth; something that’s essential to our pre-and post-Brexit success. It’s an amazing thing for them to be part of,” added Jane Dumeresque.
The majority of loan invest/opportunities currently exist within the areas covered by our network of local branches. However, as FOLK2FOLK continues to grow and open new branches over the coming months the invest/opportunities for Lenders to invest locally will only increase.
