How do we use your investment?
From the beginning, the simple idea behind Fluid was to ultimately offer bridging loan facilities at a competitive rate in the unregulated market of business-to-business lending.
Funds will be lent internally from Fluid ISA Bond 1 Limited (The bond issuer) to the LendCo (Fluid Lending Limited), and the interest rate on that loan will be the same as that offered to the ISA bondholders (fixed at 6% per annum, due to be paid quarterly).
Fluid Lending will aim for a minimum lending interest rate on the loans makes of 0.9% per month to break even, hoping to achieve an average closer to 1.25%. All loans are asset-backed and will be short term, typically lasting from 6 to 18 months.
The fact that the bond is asset-backed would not guarantee that all capital would be repaid. This also means that there is a liquidity risk and there is likely to be a delay in repaying your capital should you request it.