Local lending company, Folk2Folk, delivered a record £11.3 million in gross interest payments to investors during financial year 2019.
The company has seen a year on year increase in the amount of interest earnt by investors via its platform, with 2019 delivering its biggest pay-out to date.
Folk2Folk provides loans to credit-worthy businesses needing finance to grow, develop or diversify, who don’t fit the bank lending criteria. Its loans are funded by its community of lenders, typically people of retirement age seeking a secured investment at an attractive rate to supplement their monthly retirement income, as part of a balanced investment portfolio.
Roy Warren, FOLK2FOLK Managing Director, said: “Our investor confidence remains strong even during the pandemic. We have an extremely high reinvestment rate and while some investors, whose investments have recently redeemed, may choose to temporarily ‘sit out’, others continue to reinvest and indeed add further funds on our platform.
“We have continued to register new investors and the £12.3 million of lending we’ve facilitated since March 1 and throughout the pandemic has been funded by both new investors and existing. We believe it is crucial for our country’s recovery to keep the economy moving, by facilitating loans and income generating investments, and we’re heartened that our investors appear to share that view.”