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|Community Chest launches new Social Enterprise loans using ThinCats as the platform|
|Wednesday, 27 July 2016|
Specialist Sponsor Community Chest Business Loans Ltd has launched its specialist loans on the ThinCats platform. Community Chest loans allow investors to provide much-needed funding for social enterprises while also making a strong tax-efficient return on their investment.
The new proposition uses ThinCats’ platform, based on 'pure P2P’ principles, to give lenders the opportunity to take a fixed income investment in established social businesses via an online auction. But there are some crucial differences from ThinCats’ regular secured loans. Critically, the prime investor benefit is generous tax relief from the government of up to 30%.* In order to qualify for the tax relief, loans must be held for a fixed term so they cannot be sold on the ThinCats secondary market. This tax relief is only available on unsecured loans so this represents a difference from the normal secured ThinCats loans.
Community Chest opens up an innovative new peer-to-peer investment strategy for those looking to diversify their portfolio and gain tax-free returns it is envisadged that many of ThinCats’ current members will be interested in funding social enterprises alongside their existing peer-to-peer holdings. The platform also believes Community Chest will attract sophisticated investors looking for an innovative tax-efficient investment vehicle.
The first deal from Community Chest on the ThinCats platform is a (CITR) £500,000 loan to ART Business Loans, a Community Development Finance Institution providing funding to small and medium sized businesses in the West Midlands. One business owner who has already benefitted from ART is esteemed Michelin star and Great British Menu winning chef, Glyn Purnell, who was able to open his own restaurant in Birmingham with the finance it provided.
Kevin Caley, Founder and Chairman of ThinCats, said: “The peer-to-peer lending sector was born out of innovation a decade ago, and that disruptive spirit lives on. We stay true to that principle in everything we do. Community Chest is breaking new ground by providing a unique and tax-efficient way of investing in P2P, which I believe will be popular with investors, while delivering a vital new route to funding for social enterprise right across the UK. I hope developments like this encourage further innovation in the cutting-edge fintech sector, and continue to drive momentum toward a new landscape for lending in the UK.”
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