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Crowdfunding Response to US Interest Rate Hike

Posted 5 years ago

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Business Agent, the first FCA approved Crowdfunding Aggregator has responded to the first US interest rate rise in a decade by pointing UK investors to crowd funding as a way to achieve a return on their surplus cash rather than looking to move their money abroad.


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Itasca Wines is a Hampshire-based vineyard and winery that produces fine English wines. The company is raising funds for its contract winemaking facility, to fulfil the growing demand from vineyards. There are over 760 vineyards in the UK currently, 111 have their own winery and only a handful of these provide contract winemaking services to other vineyards. Itasca Wines aims to become a major winemaker and create award-winning wines at Penn Croft. The company planted its first vineyard of 16,000 vines in May 2019 and has featured in Vineyard Magazine in February and May 2019.

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‘After so many years of virtually zero interest rates, now that the US has made the move upwards, with the UK authorities still indicating that rates will remain unchanged in the UK, it is inevitable that investors will start to look across the Atlantic,” claims Sacha Bright, CEO of Business Agent. “There is no need for them to do so. UK Crowdfunding, done responsibly, offers excellent returns to investors in this country and at the same time supports our economy by funding many of the emerging fast growth businesses,” he says.

 

Business Agent was the first crowdfunding aggregator to win FCA approval, and now hosts 39 alternative finance providers on their site. The average interest rate from a sample of businessagent.com partners is 9.26%, but they emphasise the need to undertake proper due diligence on any investment made. ‘It is important to be aware that lending through crowdfunding is not like putting a deposit with a regulated bank. Crowdfunders are not protected by the Deposit Protection scheme,’ emphasises Bright.

Notwithstanding this he does maintain that properly thought through investments are a very good alternative to other forms of investment.

 

Business Agent recommends you should consider these three points before investing.

 

  1. Can you suffer a long term investment meaning you won't be able to gain access to your money for a set term.
  2. Could you afford a loss if there was a crash in the market, some debt based crowdfunding sites secure their funds against property, invoices, insurance policies or even run a contingency fund. This is good but it is still not as robust as the Government Deposit Protection scheme.
  3. Diversify across platforms and types of investment to minimise risk.



‘The benefit of working through an aggregator like http://www.businessagent.com is that investors are able to see a variety of opportunities in a range of sectors which helps them to spread their risk,’ says Sacha Bright. 

Tagged: interest rates crowdfunding equity US UK



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