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Frequently asked questions

London Capital & Finance Plc is a commercial lender that is seeking to help support UK businesses with the provision of credit whilst at the same time providing investors with an attractive return on their investment. Borrowing companies must provide adequate security and undergo a strict due diligence process. Profits from the lending fees and interest on the loans are used to pay investors their fixed return.

The returns are a fixed-rate of 6.5%, 8.0% and 8.95% per annum for the 2, 3 and 5 year bonds respectively as outlined in the brochures and Information Memoranda.

Yes. The returns are fixed for the duration of your investment period, there are no hidden fees or charges so you get a return for 100% of the money you invest.

Investors' funds are secured by a charge over the assets of LC&F and over the assets of borrowing companies. This security is held in trust for all investors by an independent Security Trustee, Global Security Trustees Ltd.

London Capital & Finance Plc is a successful corporate lending company. They lend money to companies who have undergone a strict due diligence process and can provide adequate security for the loan.

What is adequate security? When funds are lent out, a charge over either property and/or other assets of the borrowing company is taken at no more than 75% loan to value. So, for example: with a loan of £750,000, the value of the charged assets of the Borrowing Company would need to be at least £1 million.

LC&F has appointed an independent security trustee to hold a charge over LC&F by way of debenture, which includes the charge held by LC&F over its borrowers, in the interest of the bond holders, should LC&F not be able to meet its commitments.

The frequency of interest payments is dependent on the chosen investment term, the different options are highlighted in the below table.

Investment Term 2 Years
(Series 4)
3 Years
(Series 10)
5 Years
(Series 11)
Interest Paid Every 6 months Quarterly Annually

Principal capital invested is repaid at the end of the selected term. Compound bonds pay interest and principal at maturity.

£5,000 is the starting minimum investment with multiples of £100 thereafter with no upper limit.

The directors believe that an investment in the bond or ISA is suited to investors:
• Who want an above average return on invested funds
• Who want the security of a bond that is asset-backed
• Are looking for income over a choice of investment periods

Investors are purchasing UK corporate bonds which make fixed interest payments. The bonds and ISAs are managed by London Capital & Finance Plc.

No, the London Capital & Finance Plc bond and ISA pays a fixed interest amount.

The bonds are suitable for Self-Invested Personal Pensions (SIPPs) subject to approval by the scheme trustees and administrators.

London Capital & Finance Plc will take no fees or make any deductions or charges of any kind on the interest paid by the bond, but HMRC requires us to retain a 20% withholding tax for a UK tax-payer (except for bonds held within an ISA).

No, the bonds and ISAs have a fixed term, are not transferable and investors do not have the right to redeem their bonds and ISAs prior to the Maturity Date.

Two bond issues are now full and have closed.
There are currently other series of bonds available which are targeted to raise up to £50 million each.

Investors who have any questions can speak directly with the company, by following this link: contact us

Applications can be made online here . Alternatively our Investor Relations Team can answer any questions regarding the sign up process contact us

All payments of interest made by LC&F are subject to the deduction of 20% withholding tax. LC&F is required by law to deduct withholding tax at 20% and pay its investors the net proceeds of the bond.

As an example, if an interest payment of £1000 is due, then £800 will be paid to the investor and £200 will be payable to HMRC, by LC&F, on behalf of the investor.

The deduction of withholding tax is subject to any lawful and customary exceptions and is dependent on an individual investor’s own taxation status.

If your bond is one of our ISA bonds, then your payments are made without the 20% deduction.

LC&F has sought guidance from HMRC who confirmed that LC&F is obligated to deduct 20% withholding tax and instruct its investors to claim any relief due to them directly from HMRC via their tax return.

Whilst London Capital & Finance Plc is regulated by the FCA, the bonds and ISAs offered herein are structured as corporate loans to LC&F and are therefore not regulated by the FCA.

Have a question about the LC&F ISA?
Find the answers in our ISA FAQs.