FOLK2FOLK, an SME lender that matches investors with borrowers, is reporting a “record year” for its Innovative Finance ISA (IFISA) for the tax year 2021/22, sharing that the company received 44% more ISA funds than in the previous year.
FOLK2FOLK states that it has seen year-on-year growth for its IFISA, which launched in July 2017 and has attracted a cumulative total of more than £41.6 million in ISA funds.
As some platforms have exited the P2P lending sector, FOLK2FOLK says it is benefitting from an inflow of new customers from Funding Circle, Ratesetter, and Zopa, along with a transfer of their IFISA. Investors may transfer their ISA funds from one ISA provider to another.
FOLK2FOLK’s says that investors typically receive 6.5% p.a. interest tax-free and paid monthly if the investment is held in an IFISA.
Roy Warren, FOLK2FOLK Managing Director commented:
“In recent times investors haven’t seen any benefit from their ISAs unless it has been with a firm like us paying a generous return. Now, as inflation creeps up, people still value a property-backed investment that offers a fixed return outside the volatility of the stock market. An IFISA provides the opportunity to build up investment over time, and this is the time of year when we see people shopping around for a better deal. We’re seeing investors move their Cash ISAs and Stocks and Shares ISAs over to our Innovative Finance ISA, attracted by our fixed and stable 6.5% p.a. return, no fees, no investor losses to date and the fact their investment is secured against property.”
FOLK2FOLK adds that very high borrower demand for loans results in IFISA funds being invested without delay.