Mayfair-based alternative finance house IW Capital announces the launch of their new debt fund
A £10,000 entry point opens up small business investment to retail investors Debt finance availability is the biggest concern for business investors
- Debt finance could help bridge the funding gap for growing SMEs
- SME growth will be key to financially future-proofing the private sector
- As we struggle to purchase homes could British business provide an alternative asset?
- Retail investors looking to make the most of their capital could help British businesses
As Brexit pushes banks back, private investors are stepping forward to support small businesses. IW Capital discusses the innovative ways to secure growth finance as an SME and the changing profile of the UK investor. This debt fund comes in addition to IW Capital’s current EIS and equity offerings. IW Capital's new debt fund will provide a new and innovative route into investing for retail investors to make use of their capital in a way that works for them, rather than leaving it to stagnate in a savings account. The entry point of £10,000 makes the fund accessible for many individuals that previously may have felt that investment in small business was out of reach financially.
Key stats for the debt fund:
- Entry point of £10,000
- According to research from The UK Business Angel Association, 81% of people have over £10,000 in investible assets outside of their residential property or workplace pension.
- IW Capital's debt fund offers potential returns of 7-9% compared to 1.09% on a two year average fixed deposit rate. This comes at a time where inflation is currently out-stripping most savings account interest rates.
CEO and Founder of IW Capital - Luke Davis - comments on the impact that the debt fund will have both for investors and small businesses: "We are beginning to see a change in the perceptions of investors in the UK, previously the view has been that investing is reserved for the very wealthiest of society but debt funds have opened it up to retail investors. These individuals are financially empowered and are looking to use their capital to support British business instead of leaving it in the bank, taking pride in this share of the future-proofing of our economy driving private sector. Our offering not only allows businesses to secure funding at rates that would otherwise be unavailable from most traditional banks or lenders, but also gives investors the opportunity to make the most of their capital in a time of historically low interest rates."