Crowd for Angels launches IFIsa crowd bonds

Crowd for Angels launches IFIsa crowd bonds

Business crowdfunding platform Crowd for Angels has launched its first bond products which are eligible for the Innovative Finance Isa (IFIsa).

The ‘crowd bonds’ have been designed to offer a higher rate of return than a typical cash Isa and can be secured against the assets of the borrowing companies.

The first two companies to issue crowd bonds on the platform are bar and restaurant group Seven Spirit Limited and SME credit planner PayItMonthly.

Tony De Nazareth, CEO and founder of Crowd for Angels, commented: “With interest rates on cash Isas currently at all-time lows, we expect to see high demand for our crowd bonds.

“Investors who are willing to take on extra risk by lending to companies, have the opportunity of making tax-free returns of up to 9% per annum on our asset-backed bonds, which compares to an average interest rate of just 0.64% on a cash Isa.”

Seven Spirit Limited plans to raise up to £400,000 and is offering 6.4% per annum interest to be paid monthly.

Meanwhile, PayItMonthly is aiming to raise up to £200,000, paying investors monthly instalments at 9% per annum.

This launch follows the introduction of the IFIsa in April 2016

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