Peer-to-peer consumer lending platform Leap Lending has launched an Innovative Finance (IFISA) for both new and existing investors.
The IFISA product offers the same rates, returns and risk as Leap Lending’s standard P2P account, but with the benefit of the tax wrapper.
Daniel Napon, finance director and chief operating officer at Leap Lending, said that 25 per cent of the platform’s existing investors have already opened an IFISA account with them and through marketing the product, he expects a high adoption rate from new lenders too.
“We thought it was a complimentary product,” Napon said.
“It gives a regular lender the opportunity to open an account with the benefits of a tax wrapper, so we thought it was a no-brainer to launch this product.
“There is a lot of appetite for the IFISA. Just last year more than a billion pounds was put into them.
“Cash ISA returns are below inflation while stock and shares ISAs are affected by stock market volatility, so IFISAs from P2P sits in the middle and bodes well.”
Read more: IFISAs: Dark horse
“Lenders can invest up to £20,000 without paying income tax on their interest,” said Fawzi Kyriakos-Saad, chief executive of Leap Lending.
“It’s good for people to know that they can invest in P2P with the tax advantage.”
After launching in December last year, Leap Lending has continued to grow throughout the Covid-19 crisis. During the pandemic it has witnessed more investors putting money onto the platform and huge demand from new borrowers.