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Fintech lender bucks market trend with an indicative ‘A’ rated investment option.
Fintech lender Just Cash Flow PLC has listed £50m worth of investment grade corporate bonds on the Global Exchange Market of Euronext Dublin through its sister company JCF 2021 Bonds Plc- backed by its portfolio of small business loans, enabling institutional investors to receive a fixed income as a result of its profitable SME funding model.
Just Cashflow is the only UK Fintech lender to be raising funding in this innovative way, with the bonds being fully tradable and boasting a long-term stable outlook.
While some recent investments in, or valuations of fintech lenders have been held back by doubts on future profitability or the quality of the loan book, Just Cashflow has already announced that it is running in profit as of August this year, having grown lending applications by over 300% in the last two years.
This has seen the loan book grow by over £1m a week, while keeping capital loses at industry-leading low levels of 0.2%.
The funds raised through the bonds will be used to lend to more businesses – directly assisting new, ambitious and growing SMEs.
CEO of Just Cashflow, John Davies commented:
“At a time when some fintech lenders have seen a disappointing response from the investor market, our slow and steady approach to building a high quality loan book with very low capital losses has been reflected in the grade given to our bonds.
“We’re the only UK fintech lender raising funds in this traditional way, perhaps reflective of the scrutiny required when an international ratings agency examines the quality of the lending decisions and the businesses being supported.
“This bond will allow investors to essentially receive a fixed income on the success of funding small businesses, knowing that said businesses are being carefully selected and guided through their growth by a safe pair of hands.”
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