IFISA providers

Peer to peer lending is a fast-growing industry which has gathered popularity among new and old investors. Its unique feature is that the investment made through it is tax-free; the interest that investors earn is never taxed. There are a lot of IFISA providers, some new and some experienced in the market that offer Innovative Finance ISA. Peer to peer lending platforms involve investors that give loans to businesses or consumers in return for an interest rate, which is higher compared to the cash ISA interest rates. This type of investment offers an alternative to people who want high returns than the cash ISAs; however, they have low volatility compared to stocks & shares. It is a type of banking that removes the middleman. However, with p2p, there still is a middleman which is the platform that investors or lenders use. Nonetheless, it does cut down a lot of the cost which a bank incurs as a middleman; this means that the investors get better returns without bumping up interest rates for borrowers. IFISA has different sizes and shapes, lending loans to individuals, property developments, small businesses, refurbishments or even renewable energy projects. Some of these investments are secure while some are not.

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