Your capital is at risk and investments are not covered by the Financial Services Compensation Scheme (FSCS).

Read our full Risk Warning

Your capital is at risk and investments are not covered by the Financial Services Compensation Scheme (FSCS).

Rate Payable

9%

Term: 3 Year Bond

Minimum investment: £1,000

Interest Paid: Net of Income Tax

Sector: Personal Loans

ISA qualifying: Yes

Frequency: Monthly

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Capital Protected Insurance: Yes

The Company

Integrity Protect No.1 Ltd (“the Company”) is an FCA regulated UK Company, operating north of Cardiff and the M4 Corridor. The Company has identified a significant gap in the payroll loan marketplace and is seeking to build on its successful experience in the consumer loan market, so as to satisfy the demand it has identified from employers seeking to enter the payroll loan marketplace.

The Market

The payroll market is a separate yet distinctive market from “payday loans” although they share many common features. The payday loan market operates via a high-interest-bearing rollover loan commonly charging as much as 1,500% APR. The borrower repays the money to the lender. The payroll market differs in that the loan is made directly to the borrower but the cost of the loan is no more than 60% APR. The loan is repaid by the employer and not the borrower, hence the exceptionally low default rate. Integrity offers short-term, payroll loans to UK employees of established UK employers, with repayments collected each month via the payroll system. The benefit to employees seeking such short-term, high-cost loans is in removing the need to resort to expensive borrowing from payday lenders.

Reducing Risk

Integrity believes that the penal rates of interest charged on loans from traditional UK payday loan companies presents an enormous opportunity, with the added security of the employer deducting the loan repayments at source. On each pay day the employee’s loan (capital and interest) will be deducted by the employer from the payroll and sent direct to Integrity from the employer, negating the risk of collecting direct from the employee. Loans would be for a period of 1-2 months. Using the employer to deduct the loan repayment substantially reduces the risk of default to a figure of less than 0.5% per month, with any default being absorbed by Integrity.

Security

Security is by way of a debenture on the Loan Book.

Liquidity

Although the bond is transferrable – Berkeley Rutherford  may offer a “Bulletin Board” service for members wishing to  buy and sell bonds from each other in future, but no such  market exists currently.

Diversification

Our average loan is £200 repaid after 3-4 weeks. Someone investing £25,000 into our bond will have this invested in approximately 13,000 loans.

Offer

The bond pays a fixed annual interest of 9% per annum over  3 years. Interest on bonds held within an ISA is paid free of  tax. Otherwise interest is paid after deduction of income tax  at the basic rate (currently 20%). Interest is payable monthly,  and capital is repaid as a lump sum upon maturity. The term  commences when your investment is completed. 

Minimum Investment

£1,000+            9% per annum            3 year term

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