Car lease specialists XL Group is raising a unique £3m P2P loan facility to bolster its short-term contract hire business. The finance has been structured by P2P lending platform Crowdstacker (crowdstacker.com) and TFG (tradefinanceglobal.com).
To limit risk, XL enters into buyback agreements with the manufacturer or dealer for each vehicle purchased. The company, which was launched in 2006, provides an alternative to conventional long-term vehicle financing, and has grown its fleet substantially over the last 12 months.
The investment opportunity is offered by Crowdstacker, an FCA regulated P2P lending platform, through both its new Innovative Finance ISA (IFISA) and standard P2P Account. The new IFISA shares the same investment limit as both of the other other ISA options, Cash and Stocks & Shares. During the current (2018/19) Tax Year, individual investors may invest up to £20,000 into one or more ISA. Interest income generated from funds deployed via an IFISA is protected from income tax.
Since the IFISA launched in April 2016, P2P lending has risen sharply in the UK and expanded beyond traditional investments in property to a wider range of assets. Through an innovative funding structure, Crowdstacker has now allowed P2P investors to enter the vehicle market.
Jonathan Littlewood, COO at Crowdstacker commented: “XL is operating in a very strong market. About 80 per cent of vehicles in the UK are leased rather than bought.
“This new automotive sector investment opportunity allows our investors to diversify their portfolio even further, whilst still taking advantage of the tax-free earning potential offered by the Innovative Finance ISA.”
The XL investment has a 7 month term and offers 4% p.a. return – with the ability to reinvest as the term ends. The interest is paid at the end of the term.
The short term is set to coincide with one full cycle of XL’s car hire lease period – including the time taken for XL to lease a car through to the pre-agreed buyback agreement with the car manufacturer (or dealer).
The investment is secured on the assets of XL CST Limited via a first ranking debenture. These assets include the vehicles purchased as well as the vehicle lease income.
The XL fundraise has just launched and is at – https://www.crowdstacker.com/investment
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 https://crowdstacker.com/risk-warning.
Crowdstacker Ltd. is authorised and regulated by the Financial Conduct Authority (frn. 648742).
Crowdstacker is an FCA regulated investment platform that makes available lending opportunities to great British businesses in the UK. It is a member of the industry body the Peer to Peer Finance Association (P2PFA).
It aims to make peer-to-peer lending accessible and rewarding for investors, and for the companies who use the platform. It also offers other debt based investments including Bonds and Loan Notes. The focus is on quality and reliability. It only considers applications from companies which have a compelling proposition and are in good financial health.
The company’s founders have worked together for more than a decade and combine a wealth of knowledge of the finance industry. Their considerable experience includes raising finance for companies, projects and funds in many sectors.
About Trade Finance Global (TFG)
Trade Finance Global is a leading independent trade finance broker and information provider working with over 270 banks and alternative funders worldwide.