How investing works

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Our online platform gives you direct access to investment opportunities in corporate bonds issued by both listed and private UK SMEs.

To get started, follow the process below.

1. Sign up

  • Firstly, set up your investor account - this should take you no longer than 10 minutes. Once you have self-certified as a HNW Individual or a Sophisticated Investor and completed our brief appropriateness questionnaire, you will gain full access to the information around each of our live investment opportunities.

2. Assess

  • You'll find all new bond issues and bonds available for purchase from other investors in the INVEST tab. Each bond is accompanied by a suite of Offer Documents, including a verified company presentation, a term sheet, an example return illustration and all relevant legal documentation, helping you to make an informed investment decision.

3. Transfer funds

  • Once you have carefully considered an opportunity and decided to go ahead and invest, transfer the amount you'd like to invest (a minimum of £5,000) into your account, either via bank transfer or by debit card. Once your funds have cleared, we will notify you by email.

4. Invest

  • With funds on account, you can place a bid (or bids) in your chosen auction for a new bond issue. When purchasing a bond from another investor, however, you can make an offer before you have prepared your funds - please see below for more information on buying bonds in this way.

    Once an auction has closed and your bid has been successful, the investment will be created within 3 working days and your repayment schedule will begin, with information about your investment then becoming available in your Dashboard.

     

Your capital is at risk when investing. Please read our full Risk Warnings.

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Buying and selling bonds which are in issue carries risks. Please read our Risk Warnings.

Investing in new bond issues

New bond issues are distributed to investors via an online auction process. Auctions can take three formats based on three scenarios:

  • The Issuer has a fixed funding requirement and will pay a fixed interest rate

    In this instance, investors' bids are accepted on a first-come, first-served basis until the full funding requirement is reached within the two-week auction period.

  • The Issuer has a fixed funding requirement and will pay an interest rate within a pre-determined range

    When investors place a bid, they must also choose the interest rate that they'd be willing to receive within a pre-determined range. Once the full funding requirement is reached, investors can continue to place bids; those investors who have bid the highest (i.e. the least competitive) interest rates are liable to be pushed out of the auction in favour of those with lower, more competitive interest rates. Investors who are pushed out of the auction in this way can re-enter if they wish by lowering the interest rate of their bid.

    Ultimately, the rate of return for all participating investors is set at that of the highest successful bid.

  • The Issuer has a ranged funding requirement and will pay an interest rate within a pre-determined range

    In this case, as an example, an Issuer's funding requirement might be between £1m and £1.5m. Here, the same rules apply as above, and investors' bids are prioritised based on the competitiveness of their interest rates. At the close of the auction, however, the Issuer can choose to draw down any amount of funding between £1m and £1.5m, enabling them to accept less money at a lower interest rate if they wish to. Issuers will tend to draw down the maximum amount of funding available to them, although this is completely at their discretion and investors who wish to ensure their participation should ensure that their bid is competitive in the auction.

Your capital is at risk when investing. Please read our Risk Warnings.

Selling your holdings

  • Selling your holdings to other UK Bond Network investors is simple, transparent, fee-free and on your terms.

Register now to see live investment opportunities

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