Fin-tech firm the Valour Group has launched a high-interest mini-bond as it looks to raise £5m for private investors and grow its lending arm
The Valour Group Bond promises an interest rate of 8.49 per cent per year, which will be paid every six months throughout the four-year term, at which point investors will receive their initial funds back.
The mini-bond will be used to grow the firm’s lending subsidiary Savvy.co.uk.
Mark Bowker, Valour Group chief executive, said: “As a company we have zero external debt and have delivered a healthy 17 per cent pre-tax profit margin, so this is the ideal time for us to take on some external debt to enable our online lender to grow further.
“We have developed robust systems for credit-checking, fraud prevention and responsible lending which is reflected in Savvy’s low arrears and delinquency rates."
Mr Bowker said he now wants to increase the value of the company's loan book with investment in the new mini-bond.
Investors can contribute a minimum investment of £1,000 from today (26 September) to 28 February next year.
