FOLK2FOLK has unveiled its new Innovative Finance ISA, opening the tax-free wrapper to existing clients first.
The peer-to-peer business lending platform will extend the product to new clients starting from 1 August, offering annual returns of either 5.5 per cent or 6.5 per cent, depending on the loan range that is selected.
The firm, which previously required a minimum investment of £25,000, has lowered the threshold to £20,000, which means ISA investors will be asked to deploy their full 2017/18 ISA allowance.
Folk2Folk’s chief executive Jane Dumeresque said the platform’s lender community has been keen on participating into ISA investment since the launch of the firm in 2013.
“We believe our IFISA returns will not only offer a source of monthly income for investors, enabling them to support their lifestyles and achieve their financial goals, but also encourage more people to support and lend to local UK businesses,” Dumeresque said.
Read more: Folk2Folk to launch North Yorkshire branch
“We offer our lenders great interest rates within a transparent structure, a great feeling of local participation and the opportunity to make a huge impact on the communities in which they live.
“The businesses our lenders support – local, rural and entrepreneurial businesses – are the businesses that knit the very fabric of our society together.
“They’re part of a growing national movement to help build and sustain financially and socially successful local communities, helping to create jobs, increasing opportunity and encouraging rural diversification and growth; something that’s essential to our pre-and post-Brexit success. It’s an amazing thing for them to be part of.”
The platform’s head also said opportunities for lenders to invest locally will increase over the coming months, as the firm prepares to open new branches.