banner image

About Farrbury
Capital Partners

Our aim is to make loan note investment as clear and simple as possible. If you don’t find the information you’re looking for below, please contact us to speak to a member of our expert team.

What is a loan note?

A loan note is a legally binding agreement which evidences the existence of a debt between the lender (the noteholder) and the borrower (the loan note issuer). It defines the loan amount, repayment terms and applicable dates.

Loan notes are effectively a private borrowing agreement between a company and an investor. Unlike bonds, they cannot be transferred to someone else.

No, loan notes are not protected by the Financial Services Compensation Scheme. While safeguards are in place, the FCA is very clear that every investor should be aware that their capital is at risk.

The loan note is secured by way of a debenture (a form of security in favour of the lender) and a corporate guarantee, with a security trustee in place. The debenture attaches to all current and future assets of the company and is not restricted to land alone.

Anyone who is over the age of 18 can invest in loan notes. As well as individual investors, trusts, companies, charities (subject to their governing documents) and the retail sector can hold loan notes.

Investors must fall within one of the following categories:
(i) certified high net worth investors (as per COBS 4.7.9R);
(ii) certified sophisticated investors (as per COBS 4.7.9R);
(iii) self-certified sophisticated investors (as per COBS
4.7.9R); or
(iv) certified restricted investors (as per COBS 4.7.10R)
Company investments and joint applications are also welcome. We recommend all investors speak to an advisor who is authorised under the Financial Services and Markets Act 2000 and specialises in investments of this kind.

Yes. The loan note can be redeemed annually, providing the investor has given 30 days’ notice.

The original investment should be returned in full at the maturity of the loan note or on the anniversary of the investment, subject to the investor providing no fewer than 30 days’ notice prior to the anniversary date.

If the money is not instantly deployed, it will be held for a short period of time in the company accounts. However, this is not the intention and all funds should be deployed instantly.

Loan notes issued through Farrbury Capital Partners will be used to provide seed capital and development funding for a range of residential property developments.

Yes. Investors will receive monthly updates on all ongoing and potential projects, as well as annual statements on the performance of their investment.

Yes. Loan notes can be included as part of the SSAS, at the discretion of the SSAS provider. However, not all SSAS providers will accept loan notes.

Yes. You have 14 days to change your mind after signing your application. After that, the application is irrevocable.

Interest is calculated from the date that the loan note issuer receives the funds and issues the investment certificate.

No. The loan notes are non-transferrable.

In such a situation, the sums due would become part of the noteholder’s estate. They will be paid out on the next 12-month anniversary of the loan note, subject to receipt of a valid death certificate and deed of probate.

Yes. We recommend that all investors speak to an adviser who is authorised under the Financial Services and Markets Act 2000 and specialises in investments of this kind.

Our commitment to you...

TRANSPARENT

We focus on providing clarity throughout the investment process, offering all relevant documentation for client review to ensure understanding and confidence prior to any investment.

CONSULTATIVE

Our dedicated team of investment professionals will give detailed and in-depth market insights, tailored to individual requirements.

STRAIGHTFORWARD

All elements of the investment process are broken down, creating an uncomplicated and streamlined method for which to invest under.

SECURITY

As a responsible investment company, we undertake extensive due diligence to ensure that all investment products offer not only necessary securities, but also an extensive and successful track record.

GET IN TOUCH

What our clients say...

"Lliquistis dolupta ssi
estorum endent unt quo es iduntis ut ad quia conecum eos rectatur."