Folk2Folk has completed its largest loan this year after investors backed £7.5m of finance through the rural peer-to-peer business lending platform.
The loan will be taken in tranches and £1.3m of the initial £6.75m drawn down has been funded through Folk2Folk’s Innovative Finance ISA.
It has been backed by 172 investors who will receive annual interest of 6.5 per cent.
The loan was required by a 400 acre Scottish estate which includes a gold course and 12th century castle and also operates a hotel and country club.
The borrower wanted to refinance an existing debt and fund infrastructure costs for 66 individual self-build plots prior to sale.
The loan term is four years and Folk2Folk has structured the deal to guarantee the first 18 months of interest.
“The spread of sectors covered by the loan, reducing reliance on any one sector, was another aspect giving Folk2Folk investors’ confidence in the current economic climate,” the platform said.
“The success of the deal lies in Folk2Folk’s ability to view each deal as unique and understand the distinct intricacies that each present.
“In addition, we know that hard work, teamwork and positive attitudes are essential when it comes to collaborating with brokers to help British small – and medium-sized enterprises gain the finance they need and to keep the economy moving.”