ASSETZ Capital has received a £50m boost from its Innovative Finance ISA (IFISA).
The peer-to-peer business lender revealed £50m has been invested into tax wrapper since its launch at the beginning of the year.
Stuart Law, chief executive of Assetz Capital, said IFISA investments now account for more than 15 per cent of all loans funded through the platform.
Almost half (£20m) of the IFISA investment has come from ISA transfers, while the average amount across the product is £18,000.
“This is an encouraging milestone to hit so early,” Law said.
“It clearly demonstrates the untapped investor demand for a proper alternative to both cash and stocks and shares ISAs that balances healthy returns with a degree of risk.
“We believe our average balance is twice the industry average due to our track record as a leader in the industry and the fact we now take property security on each and every loan.
“We will play our part in proving the government made the right decision when they sought to create an alternative ISA with a different risk profile. There is a third way and it is called P2P lending.
“This is the democratisation of finance, helping to fund the growth of the country’s economy.”