Growth Street reaches 2,500 investors and launches IFISA
Growth Street, the peer-to-peer lending platform, has surpassed 2,500 investors and launched an Innovative Finance ISA (IFISA).
Offering a 5.8% annual fixed rate of return, the Growth Street ISA has a one-year fixed term, and allows for transfers in from existing ISAs.
Investors in the new ISA will be supporting the same portfolio of businesses as those invested in Growth Street’s Classic account. Growth Street investors have lent £96m of funds to SMEs since the platform’s launch in 2014.
To help protect investors’ money, Growth Street provides a ‘Loan Loss Provision’: money set aside to cover missed payments from borrowers. This acts to diversify investors’ risk across Growth Street’s borrowing portfolio, and – while past performance cannot be relied upon as an indicator of future results – to date no one has lost any capital or interest they’ve been owed.
Greg Carter, CEO of Growth Street, said: “Reaching the 2,500 investor mark represents a major step forward for Growth Street, and reflects the market’s appetite for innovative investment options. We see the IFISA as the new “middle ground” between the volatile world of stocks & 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 provides an overdraft-style facility to UK SMEs.
Although Growth Street is regulated by the FCA to operate its P2P platform, it offers the ISA through unlisted bonds. The issuing of unlisted debt-based securities is not regulated by the FCA and is not covered by the FSCS.