Unbolted unveils P2P pawnbroking IFISA

UNBOLTED has launched its Innovative Finance ISA (IFISA) with just weeks to go until the end of the tax year.

The peer-to-peer pawnbroker said investors can earn between six and ten per cent a year in the tax wrapper depending on the loans selected.

Co-founder Rito Haldar said there has been a “flurry of registrations” since the product was opened on Wednesday morning (6 March).

It is a flexible IFISA, so money can be moved in and out during the tax year, and transfers are allowed with no charge.

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Unbolted provides loans secured on assets such as fine wine or classic cars for individuals and equipment or stock for small businesses.

Investors get protection from arrears and defaults through a provision trust that is funded by set-up fees.

The platform provides asset-backed bridging or business-style loans, It had to quash speculation last year that it was moving into property lending after taking a borrower’s property as security.

Haldar said that while this was the first time a property was being taken as security, the platform would not be expanding into property lending.

Haldar added that the platform may take property as a security in the future if they are comfortable that the cash flows from the business can sustain the repayment on the loan.