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FOLK2FOLK reports record year for its Innovative Finance ISA (IFISA)

FOLK2FOLK

FOLK2FOLK reports a record year for its Innovative Finance ISA (IFISA) for the tax year 2021/22, with 44% more ISA funds received than in the previous year.

FOLK2FOLK has seen year on year growth for its IFISA, which launched in July 2017 and has attracted a cumulative total of more than £41.6m in ISA funds.

With several peer-to-peer platforms closing to retail investors, FOLK2FOLK reports an inflow of new customers from Funding Circle, Ratesetter and Zopa, along with a transfer of their IFISA.  Investors may transfer their ISA funds from one ISA provider to another by completing a Transfer Authority Form to ensure the funds remain within an ISA tax wrapper.

Via FOLK2FOLK’s IFISA, investors lend money to business-owners in the regional parts of the UK who are looking to grow, develop of diversify their business. In return, investors typically receive 6.5% p.a. interest tax-free and paid monthly.

Roy Warren, FOLK2FOLK Managing Director said: “In recent times investors haven’t seen any benefit from their ISAs unless it has been with a firm like us paying a generous return. Now, as inflation creeps up, people still value a property-backed investment that offers a fixed return outside the volatility of the stock market.

“An IFISA provides the opportunity to build up investment over time, and this is the time of year when we see people shopping around for a better deal.

“We’re seeing investors move their Cash ISAs and Stocks and Shares ISAs over to our Innovative Finance ISA, attracted by our fixed and stable 6.5% p.a. return, no fees, no investor losses to date and the fact their investment is secured against property.”

The company reports very high borrower demand for funding resulting in IFISA funds being invested without delay, and a liquid secondary market providing investors who require to exit their investments prior to the term of the loan the ability to do so.

Via FOLK2FOLK, investors can choose what sector and which business to invest in and there are no fees to open an IFISA.

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