BurningNight Group, a city center bar chain, successfully raised over £500,000 within the first week of its crowdfunding campaign on UK’s peer-to-peer lending platform, Crowdstacker. The company is currently offering 7% p.a. interest to those investing in the £3.5 million raise. It is looking to expand its chain of bar brands, which already operating in Leeds, Liverpool, Manchester, and Cardiff.
Alan Harper, CEO of BurningNight, stated:
“Generating over 15% of our target within just days of opening our campaign is incredible and really demonstrates the attraction of P2P investments for people looking for better rates of return than products like cash ISAs can currently offer. We chose the P2P route because it is also a way for us to engage with our huge community of customers and fans. All our bars have a strong contingent of regulars, and we wanted to give them a way to benefit from our success by becoming involved with our expansion.”
According to Crowdstacker, approximately half the funds raised so far have been invested through the Innovative Finance ISA. The lending platform noted it allows its lenders to hold their P2P loans in the “investment wrapper” and stated it is one of the few portals with the required FCA permission. It is also an HMRC approved Innovated Finance ISA Manager.
Karteek Patel, CEO and co-founder of Crowdstacker, commented:
“We are very much focused on attention to detail and adopt a careful methodical approach to all that we do. This has stood us in good stead to secure the necessary full FCA authorisation so that we are able to offer everyday investors looking for potentially better rates of interest additional benefits such as the tax-free ISA. And it also means that we are able to offer investors more robust options, which can offer higher levels of security than some other P2P investments.”
He then added:
“When you invest through us, you are able to choose specific, hand-picked businesses to lend to. We do a huge amount of due diligence before we even consider allowing a business to raise money on our platform. And loans are only approved if that business is willing and able to offer sufficient levels of protection to investors.”
The minimum investment for the loan is £500 and the term is 3 years with interest payments made quarterly.
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