As we all know, interest rates on savings accounts are very poor at the moment. So, more people are seeking alternative investment options.
One particularly eye catching offer comes from Wellesley Finance Plc – they’re offering 6% (gross) per annum interest on a three year bond and 7% (gross) per annum interest on a five year bond.
On top of that, if you put your money in before 5pm on Friday 19th June you can take advantage of their special cashback deal.
Is this an investment that is right for you?
- Who are Wellesley Finance Plc?
- What would I be putting my money into?
- What are the risks?
- How do I get started?
Wellesley Finance Plc is one of the UK’s fastest growing alternative finance companies.
Wellesley Finance Plc fund the loans matched by Wellesley & Co. Wellesley & Co is a Peer-to-Peer lending platform and the sister company to Wellesley Finance Plc- if you’re not sure about Peer-to-Peer lending, click here to find out all about it and how it works.
Wellesley Finance Plc is a traditional finance company that specialises in asset-backed lending. Assets that the loans are secured against include tangible assets primarily but not exclusively limited to residential property.
So far, Wellesley Finance Plc has successfully financed over £200m of asset backed loans.
The financial product offering 7% (gross) interest per annum on your investment is the Wellesley Mini-Bond.
The Wellesley Mini-Bond gives you the opportunity to invest in Wellesley Finance Plc and the chance to be a part of its ongoing success. The Mini-Bond is designed as a very straight forward investment. Bondholders will lend their money directly to Wellesley Finance Plc for a fixed rate of interest.
Remember, even though this is financing a peer-to-peer lending platform, The Wellesley Mini-Bond is not a Peer-to-Peer lending investment.
The proceeds of the Bond will provide additional capital which Wellesley Finance Plc will use for asset-backed lending and business expansion.
What do I get in return?
There are two initial fixed terms available –
- 3 years – 6% interest* and 1% cashback.
- 5 years – 7% interest* and 1.5% cashback.
*gross interest per annum
There is a minimum investment of £100 and interest is paid twice a year in cash.
On the maturity of the Wellesley Mini-Bond, the full amount of your investment will be repaid. All interest is paid net of basic tax calculated at 20%. The Wellesley Mini-Bond is non-transferable and cannot be sold or traded. Bond holders may submit a request to Wellesley Finance Plc that their Bond be ended early. All requests are subject to liquidity and are considered at the discretion of management.
As with all forms of investment, the higher the risk, the higher the payout.
Firstly you must be aware that you will not be covered by the Financial Services Compensation Scheme (FSCS). This means that your Capital and Interest payments are at risk.
The same is true for Peer-to-Peer lending, but the Wellesley Mini-Bond carries a different type of risk.
If you invest directly into Wellesley & Co’s Peer-to-Peer lending platform, your investment would be spread across their entire loan book. If you invest in the Wellesley Mini-Bond you are lending your money directly to Wellesley Finance Plc who will use funds raised from the bond to invest in the asset-backed loans that are also available on Wellesley’s Peer-to-Peer lending platform.
You also won’t be able to put any of your investment into an ISA so you will have to pay full tax on any gains you make.
Investors must be fully aware of the risks involved before applying for the Wellesley Mini-Bond.
|Before you subscribe for any Wellesley Mini-Bond you should make sure that you fully understand the risks which are set out in the Invitation Document and you should determine whether the investment is suitable for you on the basis of all the information contained in the Invitation Document. In the event that the Company becomes insolvent, you may lose some or all of your investment. If you are in any doubt about the contents of the Invitation Document or the action you should take, you are strongly recommended to consult a professional financial adviser. Wellesley Mini-Bonds are not protected from loss by the Financial Services Compensation Scheme.|
If you would like to find out more about the Wellesley Mini-Bond Click Here
If you’ve read all this and think a Wellesley Mini-Bond is the investment for you then you can register on their website.
Remember, to take advantage of the cashback offer you’ll need to have sent your funds by Friday 19th June.
If you invest, let us know how you get on.
Wellesley Mini-Bonds are issued by Wellesley Finance Plc, a company registered in England and Wales with registered number 08331511, whose registered office is at 6th Floor, St Albans House, 57/59 Haymarket, London SW1Y 4QX. The information contained in this document has been approved as a financial promotion for UK publication by BDO LLP, 55 Baker Street, London W1U 7EU which is authorised and regulated by the Financial Conduct Authority to conduct investment business (FRN: 229378).