Clearwell Capital, which provides finance to SME property developers has raised £6 million via a bond featured on the Crowdstacker investment platform. The investment offers two options to suit investor needs - a 7.25% p.a. option over 3 years and a 6.75% p.a. option over 18 months - both with interest paid monthly. The minimum investment is £250. As with any investing your capital is at risk when you lend to businesses.
The finance house, which helps developers ‘build everyday homes for everyday people’ has provided over £19 million in finance to support the construction of 578 homes in 58 different projects across the UK so far. Of these projects, 34 are now redeemed – meaning projects have completed and funds repaid back to Clearwell to be relent to new developments.
Plugging the property finance gap
“We’ve now hit the £6 million milestone which is great news for the small and medium-sized developers we work with,” explains Ed Marley Shaw, CEO of Clearwell Capital. “Despite Government initiatives to help meet housing targets, developers are still struggling to access all the finance they need to deliver enough houses.”
Clearwell Capital aims to help developers bridge the funding gap between acquiring land, being granted planning permission and commencing the build, and the final sale of the completed properties.
“Clearwell Bonds has been a very popular investment on our platform. Although the minimum investment is £250, the average investment is much higher than this, and people have been using their ISA allowance to enjoy up to 7.25% p.a. returns offered, tax-free,” comments Karteek Patel, CEO of Crowdstacker.
Want to know more about holding your investment tax efficiently?
At Crowdstacker we offer two accounts which offer tax-efficient benefits:
Crowdstacker Innovative Finance ISA - pays interest gross and allows you to earn interest tax-free. You can invest up to £20,000 in this tax year 2018/19.*
Crowdstacker P2P Account - pays interest gross and is eligible for up to £1,000 tax-free interest under the Personal Savings Allowance.*
*Please note tax benefits are subject to your own personal tax status.
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At Crowdstacker we help our investors make the most of their money so we don’t charge any investing fees at all.
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.