Is the prospect of investing in Logbook Loans anything that interests you? Learn how Logbook Loans Loan Notes can fit into your global loan notes strategy.
This post will specifically talk about the investment options from Logbook Loans 247. The company offers pawnbroking contracts and logbook loans UK for 500 British pounds to 50,000 pounds against vehicles and valued items. These are considered high-cost, short-term credit.
If you are looking to invest as an expat or high-net-worth individual, which is what I specialize in, you can email me (advice@adamfayed.com) or use WhatsApp (+44-7393-450-837).
Ultimately, investing into loan notes always carries big risks, and you could lose all your money.
Getting advice and knowing the positives and negatives of the opportunity can be impactful.
Who is Logbook Loans 247?
Logbook Lending Ltd specializes in subprime loans. It is doing business as Logbook Loans 247.
The consumer lender was established in 2010 and is FCA-regulated.
Logbook Lending has also rebranded as Logbook Asset Management.
Logbook Loans Investment Opportunities
Logbook Lending is offering secured loan notes to eligible investors.
The notes will be protected by a debenture that covers all of the company’s current and future assets and rights.
The lender’s transferable and non-transferable notes are issued in 7 million pounds and 20 million pounds, respectively.
Related content: Logbook Loans Review
Logbook Loan 2-Year Secured Notes
Over the course of two years, investors can earn 10% interest on their Logbook Lending Ltd loan note if they want to get their payments every three months. Alternately, investors can choose to collect their interest upon maturity, with an annual return of 11%.
3-Year Secured Notes
For a three-year investment, the secured notes offer an annual yield of 11% if the coupon is received quarterly. The loan notes offer 12% interest if investors opt to receive their payment upon maturity.
Is there a minimum to invest in the secured notes?
The minimum investment is 10,000 in pounds, US dollars, or euros.
Who can invest in the loan notes?
- Asset managers
- High-net-worth individuals
- Portfolio managers
- Family offices
- Sophisticated investors
Pros and cons of investing in Logbook Loans secured notes
Advantages of logbook loans secured notes
- Can be a good way to diversify investments
- Accessible using any investment platform
- Closely managed market unaffected by mainstream market trends
- 1.8 million pounds worth of assets or property are pledged as collateral under a debenture agreement
- Typically, investors receive consistent revenue from interest payments
Risks of logbook loans secured notes
- Investors risk losing money if borrowers go into default, especially if the collateral isn’t worth enough to pay off the loan
- It could be challenging to swiftly or at a fair market value dispose these investments due to low liquidity
- There is no assurance that the Notes will be fully repaid just because the debenture is there, so investors should be aware that their money is at risk
Final Thoughts
Regulatory measures have been implemented, including caps on charges, in the high-cost, short-term credit industry, which includes logbook loans, according to the FCA.
However, the market outlook for this industry looks promising, with a material growth projected in the years ahead for the industry.
Investors can diversify their holdings away from the volatile financial markets and into a potentially inflation-protective asset class with the help of the log book loan notes.
Should you decide to invest in the secured loan notes, always weigh the pros and cons first, and make sure that you’re aware of the total costs against your investment money. Do consult with a financial advisor if you are not sure which investment options to put money in.
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Adam is an internationally recognised author on financial matters, with over 760.2 million answer views on Quora.com, a widely sold book on Amazon, and a contributor on Forbes.
