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The lifecycle of XL’s P2P loan - a crowdfunding success

6th December 2019

XL’s vehicle lease concept is perhaps somewhat revolutionary. To provide vehicles, many at the luxury end of the market such as a Lamborghini Huracan, Ferrari 488 or a more modest but equally iconic Mini Cooper, to both corporate and private individuals. The model provides many advantages to consumers. The benefit of having a car but with none of the hassle of owning, operating and maintaining a vehicle. Customers can potentially even change their vehicle twice a year, choosing their vehicle dependent on the season due to XL’s 6-24 month contracts.

We are proud to have been able to be part of XL’s journey when, in 2018, XL raised a phenomenal £1million on the Crowdstacker investment platform.

XL Group used these funds to purchase vehicles at substantial volume discounts, which were then leased on to its customers - individuals and UK SMEs - for a short term of 6 months.

The XL P2P Loan offered to investors a 4% p.a. return over a seven month term, and over 250 investors took up the opportunity. 

 

A great example of Crowdstacker investments in action

XL loans completed the investment term and Crowdstacker investors received their full capital repayments as well as interest in early 2019.

 “We focus on businesses that need to raise larger sums of money to help them grow, create jobs and reach the next level of success,” explains Karteek Patel, CEO of Crowdstacker.

 “The process of directly linking investors with businesses which need to diversify or increase their funding lines is becoming more established every year.  

“XL is a prime example of an investment that has enabled investors to earn an inflation-beating 4% p.a. return on their money over a seven month term, at a time when savings accounts or cash ISAs are struggling to do the same.”

 

Crowdstacker investments can offer built in security and tax efficiency

The focus was on putting in place security. To limit risk, XL entered into buyback agreements with the manufacturer or dealer for each vehicle it purchased with Crowdstacker investor money. Plus, the entire investment was secured on the assets of XL CST Limited via a first ranking debenture. These assets include the vehicles purchased as well as the vehicle lease income.

Crowdstacker’s loans are eligible to be held in an Innovative Finance ISA account (IFISA) as well as the standard P2P Account, where investors could benefit from the Personal Savings Allowance (PSA). This offers investors the ability to access tax efficient investments, subject to their own individual tax status.   

Our website has all the information you need to find out more about investing on the Crowdstacker investment platform.

Risk warning
Your capital is at risk if you lend to businesses. Lending through Crowdstacker is not covered by the Financial Services Compensation Scheme. Tax treatment is dependent on an individual’s circumstances and may be subject to change in the future.  For more information please see our full risk warning