AN INNOVATIVE Finance ISA (IFISA) established by a bridging loan provider to fund some of the finance it approves has begun making its first interest payments.
The Fluid Bond launched in November and pays an annual return of six per cent over three years, with interest paid quarterly, rather than the typical yearly timeline.
Investments in the Fluid Bond are used by bridging loan provider Fluid Trust to fund asset-backed deals over six to 18 months, predominantly on property development projects.
The Fluid Bond has a minimum investment of £2,000.
Read more: Assetz Exchange gets set for public launch
It was founded by chartered accountant and property developer Ansar Mahmood, who is also a director of the bridging company.
“In the current climate, high-street and second-tier banks are becoming increasingly reluctant to lend, especially in unregulated markets,” he said.
“As a smaller, yet specialised and industry-experienced lender, we are able to offer secured, intelligent bridging loans at a competitive rate, to fund the expansions and ambitions of exciting business and projects across the UK.
“This allows us to facilitate the growth of our investors’ money, with the Fluid Bond secured by assets for their peace of mind.
“ The market is evolving and we intend to grow alongside it the first payouts of the latest in our suite of financial products is an exciting milestone.”
Read more: Kuflink boosts IFISA rates