Frequently Asked Questions

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Frequently Asked Questions

What type of ISA is being offered?

Choices is offering access to an Innovative Finance ISA, or IFISA through which investors are able to invest in our bonds.

Please note that each individual is only allowed to invest in one Innovative Finance ISA in any tax year. However, you are allowed to transfer savings from other types of ISAs (Cash, Stocks and Shares) into an Innovative Finance ISA at any time.

What is my ISA allowance?

Your annual ISA allowance is set by the Government and is typically reset every April. For the 2017-2018 tax year the ISA allowance increased from £15,240 to £20,000 providing a significantly enhanced opportunity for ISA investors.

Is there a limit on the value of any transfers into an Innovative Finance ISA?

There is no limit on the value of tax-free transfers into an IFISA from other types of ISAs.

Is an ISA transfer a complicated process?

No. Choices will provide you with a transfer form for you to complete. This transfer form can be completed on-line or in a paper format as you prefer, and Choices will thereafter deal with your existing ISA provider to manage the transfer into the Choices ISA.

How do I set up or invest through the Choices ISA?

Click on either the “Apply Online” or “Request Callback” button on the Home Page. You have the choice of filling out your details on-line or requesting a call-back and one of our team will be in touch to talk you through the application process.

Is there a minimum level of investment?

The Choices ISA is open to individuals investing £2000 or more.

This investment can be in the form of cash investment, transfers from existing ISAs or a combination of the two.

What are the set up and annual management fees?

There are no set up costs or annual management fees.

The cost of managing the Choices ISA will be met by the borrowers and only after investors have had their 7% annual return. As such, Choices has its interests aligned with investors in the financial management and performance of the Choices ISA.

Is the 7% annual return net of fees?

Yes.

How can I monitor my investment in the Choices ISA?

Once you have a Choices ISA account, you will be provided with on-line access to your own secure personal dashboard that you can view at any time in order to get up-to-date information on your investments.

What is asset backed lending?

Asset backed lending is a form of loan which is secured on the assets of the business to whom the loan is being extended.

What this means is that the loan is secured upon the assets within that business. If for any reason the business cannot repay the loan the assets can ultimately be sold and the proceeds realised applied towards meeting debts.

From an investment perspective, having the ultimate loan asset backed is a way of minimising risk as you know that there are likely to be valuable assets within the business securing any loan issued.

Please note that 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.

Who holds the security for each loan?

A wholly independent professional Security Trustee will hold on trust for all Choices ISA investors an All Monies Debenture over the borrower.

The All Monies Debenture includes security over all of the loans advanced from the Bonds held by the Choice ISA Investors.

How long are commercial loan terms?

All loans issued by Choices will have an initial contractual term of five years with the facility to extend subject to a satisfactory commercial assessment.

Do I own shares in Choices ISA or Choices or Choices Funding?

No – you own Corporate Bonds issued by Choices.

Am I exposed to currency fluctuations?

No – you are investing in Pounds Sterling and your interest is paid in Pounds Sterling.

What does compound interest mean? Why is it important to me?

Compound interest is the amount of interest you earn from the initial deposit and the accumulated interest for that period. The interest will continue to ‘compound’ and add together for the whole 5-year period of the investment.

What if I want to take out my funds out of the bond early?

Choices is sympathetic to the fact that events do take place from time-to-time which are completely out of the control or planning of individuals. In this regard, in the event of the death of the investor their legal personal representative(s) are permitted to apply for early redemption, without penalty, following the grant of probate.

In the event of serious injury, serious ill health, or disability consideration may be given to early redemption by Choices in its absolute discretion and in each case having the circumstances evidenced to its satisfaction.

It is extremely unlikely in any other circumstance that Choices will allow the early redemption of an interest in bonds.

In the event that there is in the future a secondary market for the bond, you may be able to sell your interest, on the platform, without penalty. At this stage there is no secondary market.

How does the ultimate financing process work?

Any business or project will only be considered for funding following the satisfactory completion of a comprehensive review process undertaken by Choices. As part of this process, every prospective borrower must provide a detailed business plan, be capable of providing adequate security over any loan finance to be afforded, and evidence the ability to service the loan interest sufficiently to return the rate promoted to investors.

Choices will be ultimately responsible for the approval process and monitoring on-going performance.

How has the Choices bond been designed to reduce risk?

Choices looks closely at the underlying trading activities of businesses that are under consideration for financing from bond funds; seeking to diversify the investment portfolio and thereby mitigate ultimate risk. Keen attention is paid to matters such as insurance, nature of the assets of the business, valuation and a range of other key criteria in order to minimise risk with respect to each underlying loan.

Financing Business Growth

*Please be aware when investing that your capital is at risk and the value of your investment can go down as well as up. You may get back less than you invested.

When referring to “Choices”, we are referencing the bond issuer who is Choices Seven A Limited. Registered in England and Wales, company number is 11201770 and registered office address is Nexus House, 4 Brindley Road, Old Trafford, Manchester, M16 9HQ.
This webpage has been issued by the Company and approved for the purposes of Section 21 of the FSMA by Northern Provident Investments Limited.

Choices Funding is a trading name of Choices Funding Group Ltd which is the parent company of Choices Funding Seven A Ltd. Registered in England and Wales, company number 11201805. Registered Office: Nexus House, 4 Brindley Road, Old Trafford, Manchester, M16 9HQ

Choices ISA is a trading name of Northern Provident Investments Limited which is Authorised and regulated by the Financial Conduct Authority (no. 647948). Registered in England and Wales (no. 08807099). Northern Provident Investments Limited is registered with the Office of the Information Commissioner no. ZA287335. Registered Office: Northern Provident Investments Limited, Barclay House, 35 Whitworth Street West, Manchester, M1 5NG | Tel: 0800 0884676 | Email: info@choicesisa.co.uk