A loan note is a financial instrument. It is essentially an IOU (usually from a business) to repay money borrowed by it in instalments over a set period, typically paying interest and capital at a variable or fixed interest rate. When you purchase a loan note, you purchase this ‘IOU’ and become a noteholder.
Investors are due to receive interest payments on an annual basis, dependent on the chosen investment term. The Loan Notes are structured with the aim of providing an attractive return on a solid investment opportunity.
A loan note will include all of the associated loan terms as a. a form of promissory agreement. This is considered as a legally binding agreement, with both parties considered committed to the terms as they are written.
The note is considered valid until the amount listed on the document is paid in full by the borrower.
Information Contained in a Loan Note this is usually known as the term of the loan note.
The loan note is legally binding and will contain all the relevant details regarding the agreement. This information is usually advertised in the company brochure. This will include the names and contact information for both parties, as well as the principal balance and any interest rate being applied over the term.
Our trusted partners specialise in property and PRS. Private Rented Sector. If you wish to find out more information please fill out the suitability report to see if you qualify as these vehicles are to High Net worth Individuals, Sophisticated / Self certified and Restricted Investors.