Traditionally, property developers and construction companies funded property developments with loans from the bank. But after the 2008 recession, banks changed the way they lend money. Heightened caution amongst lenders caused them to deem virtually all development financing too ‘short term’ which has meant that developers have had to seek alternative methods for raising capital.
The gap in the development financing market has been fulfilled in the form of Loan Notes which allow developers to raise the necessary capital required and also offer high returns to investors in exchange. There has been tremendous growth in the number of private investors moving their funds into Loan Notes due to the enviable yields paid.
Smart Invest UK are at the forefront of introducing such opportunities to both UK and international investors. Let one of our investment managers explain how Loan Notes can benefit your investment portfolio by requesting a free call back at a time to suit you below.
Loan Notes provide a good introduction to the world of fixed income investments with impressive returns and easy exit strategies.
Loan Notes ensure you are taking full advantage of your capital and beating the returns offered by more traditional formats.
A Loan Note is just an extended form of an IOU, with interest paid over a predetermined timescale. At the end of the investment term, the original investment is returned plus any interest accrued.
All of the Loan Note opportunities we introduce are structured as follows;
- Interest is paid as ‘income’ periodically or interest is compounded over the investment and repaid at the end of the term as ‘growth’.
- During the investment term, the Loan Note is secured via a legal charge over the assets for a fixed length of time.