Loan Note Structure
All of the Loan Note opportunities we introduce are structured as follows:
Interest is paid on the original lump sum investment. This interest can be paid periodically as ‘income’ and is dependent on the terms of the loan note. This could range from either quarterly, six monthly or yearly payments. Or the interest is compounded over the term of the loan and repaid on the maturity date as ‘growth’.
Throughout the term of the loan, the Loan Notes are secured by a charge over the assets of the Product Provider. The Product Provider is the owner of the property development to which Hunter Jones has introduced the Investor.
Traditionally, property developers and construction companies funded property developments with loans from banks. However, after the 2008 recession, banks changed the way they lend money. Heightened caution amongst lenders caused them to de-risk their lending criteria and that has meant that developers have had to seek alternative methods for raising funds. Hence, the evolution of property bonds and loan notes.
The gap in the development financing market has been fulfilled in part by developers issuing Loan Notes, which allow them to raise the necessary funding required.
However, loan notes and property bonds are issued and structured by the property development company, which in most cases is not a listed company on an exchange. Such investments are therefore classified as high-risk investments and are much riskier than a savings account.
The investments referred to in this website are not suitable for all investors and are intended for certain categories of investor only. Osborne Baldwin Limited t/a Hunter Jones does not give financial advice to investors about the suitability of the investments. Investors should seek advice from a person who specialises in advising on speculative, illiquid securities.
Unregulated investment opportunities in complex instruments are considered high risk. Therefore, we can only deal with investors who are sufficiently knowledgeable and experienced in dealing with these types of investments and are classified as Sophisticated Investors.
Investors who are not ordinarily resident in the United Kingdom should ensure that they comply with the laws of their local jurisdiction before investing.
If you do not meet these criteria, you must NOT take any further action and leave this site immediately.