FOLK2FOLK has announced the relaunch of its product range offering increased flexibility and opportunity to both SMEs seeking debt finance for growth and for investors seeking an inflation-busting interest rate.

  • Introducing higher interest rates up to 9% p.a. to maximise returns for investors
  • Rewarding borrowers with high levels of security with lower rates from 0.38% p.m.
  • Increasing LTV threshold up to 60% Market Value to help even more businesses
  • Abolishing IFISA Annual Arrangement fee to increase investor returns

FOLK2FOLK is, and always has been, a peer to peer lending platform for investment: for people looking for a higher rate of interest on their capital, and for credit-worthy businesses looking for debt finance to invest in their growth, development and diversification.

FOLK2FOLK uniquely matches investors with local businesses; this local lending model often creates additional value through the creation of local jobs, retention of local talent, bolstering supply chains and helping to contribute to the vibrancy and sustainability of local economies and communities; something that is of vital importance to us all.


With its new products, FOLK2FOLK has increased the range of its interest rates meaning businesses may now borrow at rates starting from 0.38% p.m. depending upon loan purpose, situation and security.  The lower interest rate means borrowers with higher levels of security may now be able to access finance at a lower interest rate.

This coupled with an increase in FOLK2FOLK’s maximum Loan To Value (LTV) threshold, of up to 60% of Market Value, means the company will be able to help even more credit-worthy businesses access the finance they seek to grow.


This move will also enable FOLK2FOLK to offer its investors a broader array of investment opportunities to choose from. With rates from 4.5%-9% p.a. and an LTV threshold of up to 60% (Market Value), FOLK2FOLK lenders may choose to invest in opportunities to suit their preferences on interest rate, LTV, risk, location and sector.

Additionally, from the beginning of the new tax year, FOLK2FOLK will cease to charge an Annual Administration Fee on their IFISA bringing immediately improved returns for their IFISA lenders who may be able to earn monthly income of up to 9% p.a. tax free.


Over the past six years FOLK2FOLK’s investors have injected over £275m into SMEs across Britain and the company records zero losses* to investors over that time.  This record is something of which the company is fiercely proud.  As a result, there is no change to the way FOLK2FOLK assess borrower suitability for a loan; all will still need to satisfy strict credit checks, and with its new interest rates and LTV, FOLK2FOLK is ensuring it continues to price risk fairly for both its borrowers and its investors.

Giles Cross, FOLK2FOLK CEO, commented: “FOLK2FOLK is maturing as a business and our new, improved product range is testament to that. Our new rates and range of LTV present an even more attractive proposition for both borrowers and investors.

In today’s low interest rate environment, savers and investors alike are always looking to maximise their returns. The majority of our retail investors are in the “at retirement” stage of life, where the interest they receive on their capital is often life changing and we believe that the range of opportunities we will now be able to present to our investors will further bolster and reinforce that position, helping those who lend through us to lead and enjoy the best lives possible.

The same applies to our borrower customers. With SMEs still struggling to access finance via traditional sources, our common-sense approach to lending continues to deliver value. By introducing some measured flexibility around our interest rates and required levels of security we’re able to help even more credit-worthy businesses access the finance they need to grow, develop and thrive.”

Read our Guides below to find out more.


*Past performance is not a reliable indicator of future results.

Your capital is at risk and is not protected under the Financial Services Compensation Scheme


Read more press coverage of our New Product Launch:

Insider Media

FT Adviser

Bridging & Commercial

Crowdfund Insider

P2P Finance News

Share this:

Leave a comment

Your email address will not be published. Required fields are marked *