One of our favourite alternative-finance writers, Harriet Green of CityA.M. (not the chunky bowler pictured above, obviously - but cricket is relevant), looks at minibonds, in the light of the recent base-rate cut and the Brexit decision.
"Following the Brexit decision, lower interest rates are likely to see investors looking for alternative ways of seeking returns on their savings. It's too early to say what the attitude of banks will be, but it's plain that investors will be looking at other ways to get a return on their money. Minibonds are a way to do that.
"Those minibonds that have been most successful historically are ones where there's customer loyalty and knowledge of the brand – and those customers become investors. That's why sports clubs and gyms can do so well and frequently make good candidates. Surrey County Cricket Club raised £5m in five days."
Meanwhile, our latest B+ loan offering is on site, and is attracting bids. It has a five-year term and a gross indicative yield of 9 per cent. The purpose of the loan is to fund franchise expansion of Subway sandwich-shop franchises. At the time of writing, the loan is 5 per cent filled, with a gross yield, based on bids so far submitted, of 9.9 per cent. Experience of other auctions indicates this notional yield may well drop as the loan fills and cheaper offers of credit drive out more expensive ones. The auction has 19 days to run.