As the end of the UK tax year approaches, high net-worth individuals and self-certified sophisticated investors can use their ISA allowance to help expand their investment portfolio. The Innovative Finance ISA presents an attractive opportunity for investors seeking higher returns and willing to accept higher risks. Investments made via an IFISA can play a valuable role in a diversified investment portfolio as part of an overall investment strategy.
Get the red carpet ready, Sourced Capital have been nominated for Best IFISA Provider at the Peer2Peer Finance Awards!
At Sourced Capital, we are absolutely delighted with our nomination for this award and rightfully proud that such highly recognised sector specialists consider the opportunities we provide our investors to be industry-leading.
As always, the effort and dedication shown by our team this year to support our investors has been exemplary. Please be assured, however, that we never rest on our laurels and remain committed to ensuring investors on our platform enjoy the user experience, not just the results.
Who are Peer2Peer Finance?
Peer2Peer Finance is an online news magazine specifically tailored towards P2P property investors and the industry.
They provide daily updates into the property and finance worlds and help investors by offering a range of resources.
What are the Peer2Peer Finance Awards?
The Peer2Peer Finance Awards is an awards ceremony that are held to celebrate great achievement and innovation by individuals or businesses in the sector. Hosted at The Hurlingham Club in London, this year is their inaugural event, but Peer2Peer Finance anticipate that this will become an annual award.
Although this is the first time that Peer2Peer Finance have held their awards, they are known for announcing their “Power 50”. This is a list of the top 50 most influential people and businesses in the peer-to-peer lending space – a list that includes Sourced Capital.
What does this mean for Sourced Capital?
Being nominated for any award is a huge achievement and something that we are very proud of. We are also delighted to have been included in Peer2Peer’s “Power 50”, which further reflects the business growth and structural evolution evidenced over the past 12 months.
2022 is another year that has seen Sourced Capital’s performance statistics continue to advance impressively. Importantly, this performance has also been supported by further infrastructure improvements resulting in a new website, new lender platform and the hugely significant achievement of Sourced Capital becoming directly authorised by the FCA.
At Sourced Capital we work alongside property professionals who are looking to borrow for new development projects, in order to create new opportunities for our investors. We also provide a range of products that give scope for interest returns to be enjoyed tax-free
We have completed c.£40million of loans drawn, and our investors have already received over £16.5m of capital repaid and £2.7m* of interest. This represents 100% repayment of all capital and interest due to investors on all loans now expired. In addition to which, there are no loans within the active loan book in arrears or with any provision for any expected losses*.
What is an IFISA?
An Innovative Finance ISA (IFISA) is an investment that offers consumers the opportunity to utilise a peer-to-peer lending network, which allows them to lend funds while earning tax-free interest The IFISA product was launched in April 2016, prior to which, there had been two main types of ISA: Cash ISAs and Stocks and Shares ISAs.
The main advantages of an IFISA are that you have the potential to receive a higher rate of return** than a Cash ISA without the possible volatility of a Stocks and Shares ISA.
With Sourced Capital, we offer an IFISA that can help your money to work harder. You can transfer any funds you currently have in another ISA into your Sourced IFISA free of charge. There are no fees to invest, you can diversify and spread your investment across several projects, and earn up to 12% tax-free interest per annum**.
What are the advantages to investing with an IFISA?
The primary reason that investors use an IFISA is because they have already determined that they want to invest into peer-to-peer and the IFISA “wrapper” allows them to take advantage of the £20,000 per annum investment allowance, against which their interest earnings are tax-free.
In addition to being able to invest new funds of up to £20,000 per annum, the IFISA product also allows you to transfer other ISAs held elsewhere where you have taken advantage of the ISA allowance in previous years. For example, you may hold a cash ISA opened in 2020, which you could transfer into an IFISA.
Some other benefits of the IFISA are as follows:
- IFISAs are relatively easy to open and access via online Peer to Peer platforms (subject to the investor meeting that platform’s criteria)
- There are a number of IFISA providers from which to choose, so you can choose the right Peer to Peer platform for you.
- Your IFISA can sit alongside other ISAs held from prior tax years or other investments and you are still able to invest up to £20,000 per tax year earning tax-free returns on the amount invested
- A reputable provider like Sourced Capital offers target returns of up to 12% per annum, which could compare favourably with returns available elsewhere*.
- Some providers, like Sourced Capital, allow you (the investor) to select which projects you wish to support and enable you to diversify your investments across a number of different loans to mitigate potential risk.
What’s next for Sourced Capital?
We might have been nominated for Best IFISA Provider, but that doesn’t mean that we’re putting our feet up.
Our mission is to continue to provide an excellent service to all property investors and lenders. There’s no time like the present and we have several projects in our pipeline that are looking for funding. Our diverse property portfolio means that there is an investment opportunity to suit everyone.
Don’t miss out on the chance to find your perfect property investment. Invest today.**
*Figures accurate as of 02/12/2022
**Don’t invest unless you’re prepared to lose money. This is a high-risk investment. You may not be able to access your money easily and are unlikely to be protected if something goes wrong. Take 2 minutes to learn more.
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