Crowd Bonds: Tax Advantaged P2P Lending

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.

About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at:
This entry was posted in accredited investor, balance, Banking, Banks, checkbook, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, Funding Portals, Investments, Jobs, Legislative Intent, Small Business, technology and tagged , , , , , , , , , , , , , , . Bookmark the permalink.

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