CROWDSTACKER is launching its very first bond, as it moves towards its aim of becoming an exchange for debt-based investments.
The peer-to-peer business lender, which has offered an Innovative Finance ISA (IFISA) since April 2016, is planning to launch a multi-million pound bond in the first half of September.
Crowdstacker said this will move it towards its ultimate goal of becoming an exchange where P2P loans, bonds and loan notes are facilitated, and where investors and lenders can manage a portfolio of debt-based investments.
“By opening up these opportunities Crowdstacker is creating a unique blend of fintech and traditional finance, our next step in the evolution of P2P towards becoming mainstream,” said Karteek Patel (pictured), chief executive and co-founder of Crowdstacker.
“The introduction of bonds and loan notes is really just a natural extension of the work we do with larger SMEs with funding requirements of more than £1m. Essentially it enables us to offer further flexibility to choose a suitable borrowing structure for businesses, and enticing lending terms for investors.
“We can see from our research, as well as from the broader picture of the UK investment industry, that retail customers are really keen on products offering a fixed income. So the launch of our first range of retail bonds and loan notes really just enables us to offer greater choice, as well as tax efficiency through our ISA.”
Crowdstacker sought Financial Conduct Authority authorisation to offer bonds and loan notes in 2016 and was granted permissions in January 2017. All products will be eligible to be held in the IFISA wrapper.
“We try to encourage all our investors and lenders to manage risk by aiming for diversity across their entire investment portfolios, and now we can facilitate more of this diversity on our own platform,” added Patel.
“For businesses it means we can structure debt-based finance in the way that may best suit how they operate.”