The lenders who are putting the ‘innovation’ into the IFISA |
Since the Innovative Finance ISA (IFISA) was launched in 2016, one lender after another has entered the market. But most offer similar types of investments, ranging from property lending to small- and medium-sized enterprise (SME) financing.
At a time when investors are searching for truly uncorrelated investments, as well as ways to put their money to work in more ethical ways, we highlight the lenders that are providing some truly innovative solutions, and putting the ‘innovation’ back into the IFISA.
Abundance Investment
Abundance lets you invest in green-energy and infrastructure projects as well as social homes. While not the only one that offers impact investments now that can be held in an IFISA wrapper, it has been investing with a view to make a difference since it launched in 2012. Investments can start from as little as £5.
Elfin Market
Elfin has focused on creating loans that are very similar to how an individual might use a credit card. The firm has created the ‘Elfin Purse’ where borrowers get a credit limit and can withdraw and repay whenever they want. Investors’ money is used to fund the Purses.
Energise Africa
Lunched by Ethex and Lendahand, Energise Africa provides financing to solar energy projects in sub-Saharan Africa. It has so far raised more than £21m and made £12m in repayments, supporting 7,000 small and micro-sized enterprises. Investments start from £50 and target returns of up to 6 per cent.
HNW Lending
HNW Lending’s IFISA is available from £5,000 per loan and targets returns of between 7 per cent and 15 per cent per annum. It offers loans against luxury goods such as classic cars, fine wine and art.
The education P2P lender offers an IFISA that invests in loans used by post-graduate students who want a fixed rate loan to fund their studies. People can invest from £1,000 and the IFISA targets returns of between four per cent and 12 per cent.
Rebuildingsociety
Rebuildingsociety allows small business owners to invest in their businesses through the IFISA. Directors can use the Rebuildingsociety platform to privately syndicate their loan participants and lend to their company from £10 up to the annual allowance of £20,000.
This investment platform raises capital for professional sports franchises and allows IFISA investors – both retail and sophisticated – to lend to sports clubs.