PEER-TO-PEER business lender Growth Street has announced that it has attracted more than 2,500 investors to its platform.
The firm, which launched an Innovative Finance ISA last week, has now lent out more than £96m to small- and medium-sized enterprises (SMEs) across the UK while offering average returns of more than five per cent.
At the start of May, Growth Street announced that it had also lent out approximately £450m through its 30-day revolving credit facility, GrowthLine.
The Growth Street IFISA launched with a target annual return of 5.8 per cent. Although the IFISA mirrors the portfolio of Growth Street’s Classic Account, the IFISA investments are held within an unlisted bond with a fixed term of one year.
“Reaching the 2,500 investor mark represents a major step forward for Growth Street, and reflects the market’s appetite for innovative investment option,” said Greg Carter, chief executive of Growth Street.
“We see the IFISA as the new ‘middle ground’ between the volatile world of stocks and shares ISAs and the low returns you tend to get from cash ISAs.
“Since starting in 2014, it has been our mission to rethink options for investors and the launch of our IFISA is the latest step in that journey.”
Growth Street has been expanding in recent months, with the addition of new business development managers in Scotland, South England and the Midlands.