Just weeks after gaining full authorisation from the UK’s Financial Conduct Authority (FCA), social-circle peer-to-peer lender Flender announced this week it is launching an Innovative Finance ISA (IFISA) offering businesses and consumers a more tax-efficient way of investing.
As previously reported, Flender secured £501,700 from more than 230 investors through its Seedrs round earlier this year and is authorized and regulated by the Financial Conduct Authority under Registration Number 657861. The online lender is currently looking to enable businesses and consumers the ability to borrow money through their existing networks of friends, family, and customers. The lender revealed:
“Flender intends to offer established small businesses an innovative new way to access finance by leveraging their loyal customer base. In the consumer space, Flender will facilitate and formalise an existing and large market of social lending across the UK and Ireland. We aim to do this via a unique combination of bringing trust through social networks, giving all users the ability to set their own interest rates, and all via a seamless mobile user experience.”
While speaking about the IFISA, Kris Koik, Flender’s Managing Director, stated:
“The IFISA is an important development for our business, and will help to widen the scope of possible investors in peer-to-peer lending platforms like Flender. Offering a tax-free allowance is a compelling incentive to investors who are looking to support SME businesses and private individuals – and make an attractive return on their funds.”
Koik also noted:
“Achieving FCA authorisation demonstrates our commitment to fair and honest business practices and is a great way to launch our foray into the UK peer-to-peer lending market.”
Flender added that it successfully launched in Ireland earlier this year has achieved a loan demand of approximately €4 million so far, with average yield rate on the platform currently ranging from 8% to 10.5%.
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