Actually, it’s UK Bond Network to be precise, the first regulated peer-to-peer platform to offer both listed and unlisted bonds
UK Bond Network Is A Debt-Based Peer-To-Peer Platform Offering A Refreshingly Different Option To The Rest
Instead Of Featuring Business Loans, Not Surprisingly UK Bond Network Features Bonds
Lending money to businesses is a high risk investment. But in comparison with other types of business lending, such as loans and mini-bonds that are predominantly offered by the peer-to-peer sector, bonds are more flexible. And it’s this flexibility that can provide a number of advantages to SIPP holders.
When UK Bond Network structures a bond for a business borrower, security and transferability will invariably be built in. But unlike loans, there is often scope to include further benefits to investors:
an equity-related upside, such as warrants and convertibility
a performance-related upside
UK Bond Network usually advises businesses to include such features. Not only does this offer SIPP holders the potential for additional returns to the bond’s fixed income, it also makes the investment opportunity more attractive. Average returns are around the 10 per cent mark, making it another way to earn 10 per cent on your SIPP money.
UK Bond Network Works With Quoted Companies
Generally speaking, quoted companies are more comfortable working with bonds as a financing structure. This enables UK Bond Network to work with publicly quoted as well as unquoted companies, setting them apart from many of the other lending platforms.
Although having a listing does not make a company any more creditworthy than an unlisted company, it does make any potential equity upside more readily realisable due to the equity liquidity provided by its listing. Furthermore, as quoted companies or other types of PLCs have strict disclosure requirements, investors have increased visibility of reports, accounts and other relevant documents.
The bonds structured by UK Bond Network are usually more flexible and much larger than loans from the majority of peer-to-peer platforms. As a result, a considerable amount of time and resources are spent on each borrower in respect of due diligence, human credit analysis and legal restriction.
Accompanying every bond is a comprehensive suite of documents, which usually includes among other things a company presentation, a return illustration, legal documents, term sheet and a security valuation where relevant. All of this information helps SIPP holders in their research and provides investors with added reassurance.
That said, it’s never enough to solely rely on the due diligence supplied by any peer-to-peer lender, be it UK Bond Network or any of the other platforms. Independent checking is vital to help minimise your risk, for all kinds of bonds, loans and investments can and do go wrong.
Further Information On UK Bond Network
For a summary of the key features of investing in bonds on UK Bond Network, including a short video presentation and a link to its website, please go to the UK Bond Network page on SIPPclub.
Top Tips For Seeking Finance
Christopher Maule, CEO and Founder of UK Bond Network, has recently shared his experience to help businesses and entrepreneurs secure the cash they need to develop their businesses. Whist this is vital information for fund raisers, it’s also extremely useful for investors too, for it provides insight into the areas on which you need to focus before you part with your SIPP money.
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AJ Bell Is Often The Best Value SIPP For Stockmarket Assets
Over time, charges can wipe out a huge part of your fund. We like AJ Bell because there are no set-up costs. If you hold passive funds, which is our preference, or shares, investment trusts, EFTs, gilts or bonds, you pay one small fixed fee no matter how large your fund. And when you come to draw your benefits either as occasional drawdown or UFPLS payments, there's a small charge for the whole year no matter how many times you access your money (many SIPP and SSAS providers charge more than this for each payment). However, you should always compare charges in detail, because AJ Bell could be more expensive than other providers, depending on the type of stockmarket assets you hold.
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