What is a Loan Note?
We’ve made it quick and convenient for you to understand what a loan note is, why companies raise funds this way and what you could be earning by investing...
A loan note is simply a form of 'IOU' from a company to an investor. The investor agrees to make a loan to the company and the company agrees to repay it at a future date, with interest.
It is a financial instrument that contractually specifies when the loan must be repaid, the interest payable and any further security such as legal charges & debentures over companies’ assets or capital held as collateral in any unfortunate circumstance.
Loan notes are a great way for a business to gain funding without giving away equity (either at all, or at least up front) which is why companies prefer this method of fundraising over borrowing from high street banks. Some loan notes can also often be structured in such a way as to be convertible, meaning that equity may be given away at a future point and upon a certain event. Security and peace of mind is paramount in what we do and is extremely important to us and all of our opportunities undergo rigorous due diligence in order to ensure there are securities in place to protect the interest of all individuals. Unlike the stock market, the benefits of this is that they are not dependent on volatile market conditions and can earn you a higher-than-average return on investment.
The opportunities we have available offer a range of income or deferred interest payments and all come with a fixed term exit strategy. Whether you are looking for short- or long-term investments, our range of loan notes can achieve you up to 20% returns per annum.
All loan note investments that GCI market are only available to investors qualified as High-Net Worth (HNW) or Sophisticated investor, which is in place to ensure that the risks involved are clearly understood. The providers we work with do not accept investment capital from investors outside of this.
If you have any questions about any of the available investments or if you would like us to see if you qualify, please get in touch and we will be happy to help you.