Get an attractive yield by lending to established growing companies
Our investors provided loan funding to Great British Botanical, a manufacturer of premium greenhouses.
Why lend to private companies?
Lending offers a lower-risk route to private companies with the benefit of a fixed exit date. Our programme of lending offers attractive yields of 8% to 10% per annum. Some loans offer the opportunity to benefit from growth in the value of the borrower’s business, with the potential to pay out a bonus of around 40% of the loan amount.
If you have money on deposit, cash in a SIPP or in Cash ISAs, use this to build a diverse portfolio of loans with a target return of 12% to 15% per annum.
Loans can be made through the Rockpool Innovative Finance ISA and the Rockpool SIPP. Lending to private companies also offers company owners a simple, low-cost route to inheritance tax mitigation.
Rockpool’s specialist team source prime lending opportunities from well-managed private companies requiring £2m to £10m of loan finance. Borrowers are required to show annual profits of at least two times their interest outgoings and have a strong capital base or be able to provide significant alternative security.
A strong security structure, including a full debenture, must be in place before we lend to any borrower.
Loans pay 8% to 10% interest p.a. and most loans come with a share in any growth.
Build a diverse loan portfolio using our AutoSelect or SelfSelect service.
A transformer in action
NCE maintains mission-critical IT servers and data storage systems. Rockpool investors lent £4.6 million at an interest rate of 8% with a 5-year term. Security was in the form of debentures over all assets of the group.
The loan was repaid after two years and lenders benefited from equity share options giving a total return of £1.43 per £1 invested.
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