Loan Notes provide a good introduction to the world of alternative financial instruments with impressive returns.
Loan Notes we recommend ensure you are taking full advantage of your savings and beating the returns offered by more traditional formats.
A Loan Note is just an extended form of an IOU, with interest paid over a predetermined timescale. At the end of the loan term, the original loan is returned plus any interest accrued.
All of the Loan Note opportunities we introduce are structured as follows;
- Interest is paid as ‘income’ periodically or interest is compounded over the term of the loan and repaid the maturity as ‘growth’.
- Throughout the term of the loan; the Loan Notes are secured by a charge over the assets of the company which is governed by a Security Trustee.
Traditionally, property developers and construction companies funded property developments with loans from the bank. But after the 2008 recession, banks changed the way they lend money. Heightened caution amongst lenders caused them to deem virtually all development financing too ‘short term’ which has meant that developers have had to seek alternative methods for raising funds.
The gap in the development financing market has been fulfilled in part by developers issuing Loan Notes, which allow developers to raise the necessary funding required and also offer high returns in exchange. We believe there has been tremendous growth in the number of private individuals moving their funds into Loan Notes due to the enviable yields paid.
Hunter Jones are at the forefront of introducing such opportunities to both UK and international investors. Let one of our account managers explain how Loan Notes can benefit your portfolio by requesting a free call back at a time to suit you below.