Another spin on crowdfunding: “crowd bonds.”
Downing Crowd is a crowdfunding peer to peer lending platform that has raised £1.7bn from 35,000 investors seeking to invest in businesses that make a profit and a difference.
The borrowers are vetted, the loans are collateralized, interest rates run from 4% to 7% and since it’s a government Innovative Finance ISA, interest earned is tax free for income or capital gains.
Best of all, the manager’s annual monitoring fees are contingent on investors getting their capital and interest back. They claim no bad debt after loaning out over £18 million.