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Great interest rates. Brilliant feeling. Make a huge impact by lending locally.

Earn up to 9% p.a. interest on your capital while helping fund local businesses

We believe in a fair exchange for our Borrowers and Lenders with both getting a great deal: a great interest rate for our Lenders and access to funding for our Borrowers.

Capital at risk. No FSCS.

  • Invest from £20,000
  • Earn up to 9% p.a. interest paid monthly (subject to available loans)
  • Secured against UK land and property
  • No Lender losses to date*
  • Tax efficient investments possible with our IFISA
  • Help local businesses, on a national scale
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* Past performance is not a reliable indicator of future results.

Want to know more?

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The Important Bits

What you should know before investing in a peer to peer loan.

Prior to lending into a FOLK2FOLK business loan please ensure you read our Terms & Conditions. Here are a few other things we think you should know:

RISK

Your capital is at risk if the Borrower is unable to repay the loan. Find out more about the risks of peer to peer lending and our loan defaults history.

FSCS

Peer to peer lending is not covered by the Financial Services Compensation Scheme – what do we mean by that?

TAX

To be a FOLK2FOLK Lender you must be a UK tax resident.  Learn more about tax and return.

ACCESSING YOUR MONEY

If you need to exit your loan investment early you can offer it for sale to other FOLK2FOLK Lenders via our secondary market, but there is no guarantee of a sale.

FEES

There are no fees to enter into a peer to peer loan, but fees apply if you wish to exit your investment early or if you sign up for the IFISA tax wrapper. (Note: From 6th April 2019 there will be no fees to open an IFISA and no ongoing management fees.)

Lender Guide

Before investing in a peer to peer loan through FOLK2FOLK read our Lender & IFISA Guide and our Terms & Conditions.

Efficient, happy and stress-free lending

We aim to deliver an efficient, happy and stress-free lending experience. We try to do this by making everything simple and transparent and giving you answers as fast as we can. So as well as a great interest rate and the brilliant feeling you’ll get from helping local businesses, we hope you’ll also have a happier experience!

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How peer to peer investment loans work

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Talk to us or Apply online

You can register online, call us or drop into one of our branches. We’ll verify your identity, do our Anti-Money Laundering checks and then you’re ready to become an approved Lender.

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Consider signing up for our IFISA

With our Innovative Finance ISA you could earn up to 9% p.a. interest tax-free (fees apply however, from 6th April 2019 there will be no fees to set up or manage our  IFISA.)

Learn about our IFISA here

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Get matched to a loan

We’ll contact you once you reach the top of our waiting list with lending opportunities.

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Transfer your funds

We’ll only ask you for your funds once you’ve agreed to an investment opportunity (except ISA Lenders).

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Start earning up to 9% p.a.

What's right for you? Choose your peer to peer lending option

Support credit-worthy businesses while earning a great interest rate. As a FOLK2FOLK Lender you can specify your preferences for location, sector, term and interest rate and we’ll do our best to match them.  We don’t give advice and you should contact an adviser if you require financial or tax advice when deciding whether a peer to peer loan is right for you as an investment.

 

Interest Rate Up to 9% p.a.
LTV% (Market Value) Up to a maximum of 60%
Loan Term 6 months – 5 years
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Accessing your investment money

By investing £20,000 or more via FOLK2FOLK, you become an important part or our Local Lending Movement; helping local, rural and entrepreneurial businesses access the funding they need to get off the ground, grow and develop. If you find that you need your investment funds back sooner than the end of the loan term you can offer all or part of your loan investment for sale to other FOLK2FOLK Lenders via our secondary market. Fees and conditions apply.

However, there’s no guarantee that anyone will buy your loan investment which means you’ll need to remain in the loan until the Borrower redeems.

Who you’ll be lending to

Through FOLK2FOLK you’ll be helping to support local, rural and entrepreneurial businesses from farmers, property renovators, developers, country hotels and pubs, right through to manufacturing businesses, yoga studios and cafés. You’ll be providing the finance to start or grow businesses, buy assets or boost working capital.

We’re choosy but fair and turn down Borrowers who don’t meet our criteria. Our credit assessment process includes undertaking credit reference checks, due diligence, checking asset ownership and often holding a personal meeting prior to loan approval.

It’s important, however, that you do your own due diligence and don’t rely solely on FOLK2FOLK’s review when deciding to invest into a loan on the FOLK2FOLK platform.

"I feel secure lending with FOLK2FOLK and enjoy a good rate of return. FOLK2FOLK has a family feel to it which I find reassuring."
K. Holmes, Lender
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