At Barbican we are dedicated to not only making the process as easy as possible but ensuring that you understand exactly where your investment is going. We want you to have an understanding in the whole process and why we are invested into making your savings matter.
The below aims to give an introduction to what asset-backed lending is, how it works and why this form of lending could potentially be an alternative to your regular cash ISA investment. Following on from this two more educational blog posts will provide more detail in each area.
Asset-backed lending refers to a form of lending that is secured by an asset. In many instances, the security exists across the following categories: land, properties or inventory.
Asset-backed lending works as follows: The customer is given a dedicated account manager, and the investor invests in the Barbican Bond using an FCA regulated ISA Manager, three years later the bond matures. The entire process takes place under the guidance of a security trustee.
Asset backed ISAs and diversified project portfolios help to minimise associated investment risk.
This means in the unlikely event of a default, the asset can be potentially released by the borrower via the trustees, as a form of repayment.
The Barbican Innovate Finance ISA (IFISA) is somewhat unique. We are not aware of another ISA that has allowed you to support investment into projects of this nature.
There are many reasons as to why asset backed ISAs could be the way to go in your investment endeavours. One major benefit of investing with Barbican in particular is the generous 7% return pa on your initial investment.