WiseAlpha has launched a platform that enables people to invest as little as £100 in corporate loans to blue-chip companies including Virgin Media, RAC and United Biscuits.
As an alternative to stocks, P2P and corporate bonds, the company says investors can expect annual returns of between 4% and 6% for investing their money in loans secured against the receiver’s assets.
New members who register before 30 September will pay 0% service fees for five years but are otherwise charged a 1 % fee on the total money invested in a given year.
WiseAlpha founder and CEO Rezaah Ahmad said: “The corporate debt investment market is one of the largest markets in the world but has so far remained in the hands of the largest financial firms who charge significant fees to investors for the privilege to gain exposure to the market – we believe it is time this changed.
“We believe that senior secured loans are an attractive asset class but the market has been slow to adapt to changes in financial technology and has limited investors of all sizes accessing it. WiseAlpha is aiming to change that and bring a wider investment audience to the asset class.”
Members of WiseAlpha can invest from £100 up to tens of millions of pounds in a single investment.