CROWDSTACKER has launched its first loan notes project, letting investors back a leasing company ranked as one of the fastest growing firms in Europe.
Investors can earn 6.5 per cent annually over three years by investing a minimum of £500.
Rivers Leasing, which was 186th in the Financial Times list of the 1,000 fastest growing companies in Europe, is looking to raise £3m via Crowdstacker’s platform.
The firm provides asset finance ranging between £2,000 and £50,000 to a wide variety of small businesses.
Using the funds raised, Rivers Leasing is aiming to grow its loan book from its current value of £15.6m to £25m in 2020.
The new investment opportunity is part of Crowdstacker’s strategy to diversify from pure peer-to-peer lending.
As loan notes tend to be smaller and structured differently than a typical loan, they does not come under the Financial Conduct Authority’s (FCA) wholesale lending P2P ban.
“A typical Rivers Leasing customer is a business that needs to replace tired or outdated equipment, or purchase new types of equipment that are coming on to the market,” Ratan Daryani, founder of Rivers Leasing, said.
“Our customers want to maintain and grow their own customer base by ensuring they can offer services facilitated by the latest technology, within the fastest time frames, and of the highest quality.
“We see the loan notes investment as a great way to service the needs of small businesses while also offering retail investors a great rate of return.”
The notes can be held in Crowdstacker’s Innovative Finance ISA and as part of a self-invested personal pension.
“This investment means investors can really be fighting on the frontline with British SMEs, helping them to stay competitive and grow by supplying much needed funding for asset finance,” Karteek Patel, chief executive of Crowdstacker, said.
“The loan notes will be the first of its kind to feature on our platform following our announcement last month we would be branching out to offer a wider variety of debt-based investments.”