Folk2Folk: Peer to Peer Lending

Folk2Folk’s Innovative Finance ISA enables you to use your annual Individual Savings Account allowance to earn tax-free interest from peer to peer lending. You will receive monthly tax-free interest of up to 4.5%-9% p.a. (depending upon available loans) with the ability to invest your full 2019/20 ISA allowance of £20,000. The company does not charge IFSA fees and you can transfer your existing ISAs in. The IFISA term is from 1 to 5 years, depending on the term of the loan you invest into. To qualify you must be at least 18 years old and a resident in the UK and tax resident.

FOLK2FOLK is a peer-to-peer lending platform that matches local businesses looking for loans with investors. Based in Cornwall, Devon, the Midlands, and Rutland, FOLK2FOLK has been working with businesses and investors since 2013. Most of the businesses their investors lend to are in agriculture, construction, hospitality, tourism, and renovation. Interest rates are competitively low compared to many other business finance providers.

Rural peer-to-peer platform Folk2Folk received £10.5m in Innovative Finance ISA (IFISA) investments last year, marking a new record for the lender. This was more than double the previous year’s inflows and means that the platform has attracted £19.4m in new and transferred ISA funds since it launched its IFISA product in July 2017.