Video
As with any investment, there are risks associated with investing in loan notes. A loan note should be read in full as it will cover the basics of any agreement between the investor and the borrower. It is also important that you understand the following general risks:
Your personal decision to invest
The loan note issuer does not provide financial, investment or tax advice to investors. It is your responsibility to decide whether to make a specific investment or not, including carrying out relevant background research. Additionally, UK Best Investments does not take any responsibility for the consequences of your investment decision. If you do not understand anything regarding this investment, you should seek independent financial advice from someone authorised under the Financial Services and Markets Act 2000. We recommend that you take tax advice on any investments that you make.
Your capital is at risk
Investments promoted by the loan note issuer can put the investors’ capital at risk. The value of the investments may decline, and investors may lose all or part of their investment.
No FSCS Protection
The issuer of the loan note is not authorised or regulated by the FCA, therefore, any losses incurred by the failure of the bonds that you have purchased WILL NOT be protected by the Financial Services Compensation Scheme (‘FSCS’). If the loan note issuer ceases to exist or goes into liquidation you would not be able to raise a complaint through the FSCS.
Returns not guaranteed
Payment of interest on the loan notes are dependent on the success of the business model of the company that is issuing the bonds, therefore, the returns are not guaranteed, and your capital is at risk. You therefore may not get back the full amount invested, or the interest listed on the loan note.
Lack of liquidity
Investments offered on this page are not readily realisable, which means that they may be difficult to access prior to the end of the term without notice and without penalties.
Need for diversification
Spreading your money across different types of investments should reduce your overall risk. Investors should only invest a proportion of their available investment funds in this type of investment due to the higher risks involved.
Differing risk profiles
Bond offers contain different and specific risk factors, which you should consider in full. These risks relate specifically to the type of investment product and the individual company in which you are investing.
Past performance
Past performance is not a reliable indicator of future performance. You should not rely on any past performance as a guarantee of future investment performance.
