Posted 9th April 19
Mini bonds can have a high appeal for investors. Whether wrapped in IFISAs, or as specific offerings from brands to existing customers, there are a large number of mini-bonds available to the market and many interesting propositions for investors to consider.
Mini bonds can offer a number of different benefits to investors, including potentially high interest payouts and the ability to directly support a brand or company. Certain products or hobbies – chocolate or boutique hotels, for example – often have specific bond opportunities available for interested investors, with famous examples including the BrewDog brewing company bond offered in 2016.
Quirkier examples of mini bond issues include The Jockey Club’s Racecourse bond, which splits the potential return between 4.75% cash and 3% in loyalty scheme points; the Hotel Chocolat bond, which lets investors choose between an annual return of 7.25% of in-store credit or 7.33% in the form of a monthly box of chocolates; and the litigation finance bond offering from Just, which allows investors to ultimately help fund litigation efforts that might not otherwise be able to go ahead.
Bonds could be considered to be an efficient way for an established business (as well as new companies) to borrow money from investors, and could have the potential to be a viable alternative to offering equity in the form of shares.
It is important to remember that if you invest in mini bonds, you are making a debt-based investment which involves lending money to that company for a fixed period with a fixed return offered. This is very different to other methods of investment. While mini-bonds may offer a high rate of interest, you are making an investment and Your Capital Is At Risk. It will be to be harder to transfer or sell your investment and there is no FSCS protection.
By investing as little as £2,000 in the Raptor Bond you will also be joining a community of likeminded investors who ultimately want to invest in precious metals. To get started just follow these simple steps:
1. Read all of our information on this website, we’ve tried to make it as simple as possible.
2. Submit an enquiry to our team to show your interest in the Bond and ISA.
3. Our team will be in touch for further information.