Unbolted unveils P2P pawnbroking IFISA
UNBOLTED has launched its Innovative Finance ISA (IFISA) with just weeks to go until the end of the tax year.
The peer-to-peer pawnbroker said investors can earn between six and ten per cent a year in the tax wrapper depending on the loans selected.
Co-founder Rito Haldar said there has been a “flurry of registrations” since the product was opened on Wednesday morning (6 March).
It is a flexible IFISA, so money can be moved in and out during the tax year, and transfers are allowed with no charge.
Read more: The most unusual P2P investments revealed
Read more: P2P lenders move towards niche assets
Unbolted provides loans secured on assets such as fine wine or classic cars for individuals and equipment or stock for small businesses.
Investors get protection from arrears and defaults through a provision trust that is funded by set-up fees.
The platform provides asset-backed bridging or business-style loans, It had to quash speculation last year that it was moving into property lending after taking a borrower’s property as security.
Haldar said that while this was the first time a property was being taken as security, the platform would not be expanding into property lending.
Haldar added that the platform may take property as a security in the future if they are comfortable that the cash flows from the business can sustain the repayment on the loan.