We let you invest directly in a range of businesses and projects that put your money to work in a tax efficient manner and help build a green economy.
We design investment products that help you look after your financial wellbeing, while our investment partnerships support businesses in their ambitions.
We have designed Green Crowd to allow a wide range of investors to directly invest in start up and growing businesses and do so a tax efficient manner achieving high returns.
Returns on Lending
We also allow you lend directly to businesses that are usually more mature – typically through asset-backed bonds or tax incentive investments offering returns from 4% to 7% p.a
For small businesses seeking investment we give them the opportunity to secure start up and development investment directly from a wide range of investors.
What is crowdfunding?
Crowdfunding finances people, projects or businesses by raising contributions from a large number of people, usually via the internet on a ‘platform’. In return, you receive shares in a company or earn interest.
The sector is often associated with early-stage equity investments in start-ups, but in fact some 97% of the money raised in mature markets like UK has been debt-based. Much of the market is now lending to more mature businesses with established revenue streams.
What are Green Crowd EIIS Shares?
Green Crowd EIIS Shares allow you to invest directly through private placements in start up or growing businesses and receive tax relief of up to 40%* on your investment. You will also receive a nominal return on your money typically 2% – 4% p.a; often giving combined returns after tax relief of 15% – 20%.
To benefit from the full tax relief you will need to hold your Green Crowd EIIS Shares for the full four year term.
The investee companies tend to be relatively small or growing businesses and thus have higher risk profiles. EIIS funding provides them with much needed finance to help them grow in the early part of their business lifecycle. For this risk EIIS investors get rewarded with tax relief. Investors need to be aware that while the returns are attractive, they can lose all of their capital and should take independent financial advice before investing.
What are Green Crowd Bonds?
Green Crowd Bonds allow you to lend money to businesses by investing in a bond (a simple debt instrument). In return, you can earn interest on the amount you lend – typically 4% – 7% p.a.
Bonds are technically transferable, but there is no established secondary market so you should assume that you need to hold your Green Crowd Bonds for the full term.
The borrowers tend to be relatively mature businesses. As they are more established than start-ups they typically have lower risk profiles, which means they can attract cheaper funding to replace more expensive finance taken earlier in the business lifecycle. Funds raised through our bonds are usually used to refinance some of the more expensive funding.
Green Crowd Bonds are often secured against a business’ tangible assets (such as wind farms, solar portfolios and nursing care homes) to help reduce the risk for investors.
A common criticism of crowdfunding and peer-to-peer finance is the lack of transparency from platforms on what due diligence they have done on behalf of investors.
We place high importance on making sure you have all the information you need to make an informed decision. While we believe that we carry out due diligence to an appropriate level, we use certain assumptions, including that all documents and historical details provided to us by the borrower are accurate and genuine and that no material information has been withheld from us.
Due diligence can include reviewing any contracts, warranties or insurance policies that are in place, checking the borrower has any relevant permissions or licenses required and reviewing third-party valuations of the underlying assets. The larger investment amount involved with Crowd Bonds can allow platforms to carry out more due diligence, providing you with more detail on what you’re investing in, in comparison to some other types of crowdfunding.
To make it clear where your money is going, a full offer document is provided to you for each Green Crowd EIIS Investment or Green Crowd Bond.