
A second IFISA-eligible bond offer has been launched on impact investing platform Ethex by Salad Money, an innovative ethical finance provider.
The target raise on the new bond is £400,000, with a maximum raise of £1m, and all money raised will enable Salad Money to meet the growing demand for affordable loans.
The bond offers a 9% forecast return, with a minimum individual investment of £250. It follows an initial raise earlier this year which reached £960,000, nearly double its £500,000 target.
Investments into this bond are eligible to be held within an innovative finance ISA (IFISA),* through which eligible crowd-funded investments up to £20,000 can be sheltered with tax-free returns.
Tim Rooney, CEO of Salad Money, said:
“Every pound that we raise on Ethex will be used for lending capital, rather than being spent on overheads. Each time one of our loans is repaid, we recycle every pound. This meant that our previous Ethex raise has already facilitated millions of pounds of affordable loans to workers who are hampered by poor credit scores, but who Open Banking tells us can afford to repay. And this raise means we can do more of the same - reaching our target of £400,000 would facilitate more than £60 million of affordable loans over the next five years.”
Manuel Peleteiro, CEO of InBest, and a former investment banker, said:
“I invested half of my IFISA allowance (£10k) into Salad’s first raise earlier this year because of the attractive forecast return, and the fact that all of my investment is being lent out many times over to people that need it and can afford it.
“Salad has an industry-leading loss ratio because they are so good at using open banking to accurately assess who can afford to repay. I know Salad’s proven business model very well because they’ve embedded my firm’s technology within their application journey to help applicants identify hundreds of pounds each in unclaimed benefits.”
Lisa Ashford, CEO of Ethex, said:
“We’re delighted that Salad Money is launching its second bond on Ethex. Investment opportunities with ethical finance providers are gaining popularity with our audience. These successful raises are superb examples of retail investor interest in supporting community finance firms that are taking action where the UK banking system has failed hundreds of thousands of families across the UK.”
Find out more about the bond on the Ethex website
* IFISA eligibility depends on investors' individual tax status and current legislation.
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong.