Birmingham City Council is keen to encourage the use of peer to peer lending by businesses and investors in the City and as a first step they have established a partnership with ART Business Loans and Community Chest to raise funds for ART to lend to businesses in Birmingham through the ThinCats platform. Its a unique initiative that we hope will expand into a major source of lending funds for ART and a way for ThinCats investors to make a relatively low risk. It takes some explaining but despite the headline interest rate of 0% the tax relief of 5% p.a. is equivalent to earning 9.1% before tax to a high rate tax payer.
To take advantage of the opportunity investors must be members of ThinCats but membership is free. The auction is due to start on 26th January and remain open for 2 weeks.