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Peer2Peer Finance News | September 18, 2019

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Goji targets corporate clients for bond business

Goji targets corporate clients for bond business
Marc Shoffman

GOJI is looking to attract business investors to its bond, amid reports that almost two thirds of small-and medium-sized enterprises (SMEs) earn no interest on their savings.

Research by Aldermore found that 62 per cent of SMEs are earning nothing on their money, but Goji says decent returns are available beyond the banks.

Goji’s bonds have typically been offered to retail investors either direct or through advisers, but the peer-to-peer investment manager has now opened them up to corporate clients.

“A recent survey by challenger bank, Aldermore, discovered that over three million companies are missing out on the chance to make their money work harder,” Goji said.

“20 per cent of business owners said, despite having more than enough cash for their working capital they didn’t believe their bank would offer high enough rates to make it worthwhile.

“For those businesses who are earning interest on savings, the majority are earning less than £300 annually, with the highest proportion earning less than £100.”

An example client planning scenario document shared by Goji showed corporate investors could earn a target net return of five per cent a year compared wit the 0.1 per cent offered on mainstream bank business accounts.

Read more: Goji unveils new advisory board ahead of foray into IFA market

“Goji invests with carefully selected lenders into secured loans to creditworthy UK businesses and the UK government,” Goji said.

“Goji undertakes extensive, ongoing due diligence and only invests in carefully selected sectors and types of loans so that investors know that risk is well understood and well managed.

“Although a small proportion of loans may default in a portfolio, the overall return earned by the portfolio targets a five per cent return, which is greater than inflation and the returns available on cash.”

Goji launched its diversified lending bond last year, targeting returns of five per cent by investing in loans across P2P platforms.

It also a bond investing in UK renewable projects that aims for returns of 8.3 per cent.

Read more: Goji secures multi-million-pound backing from global fintech investors