: Some are "secured" against assets like property, providing a fallback if the borrower defaults . Where to Buy Loan Notes
You can source notes through several channels depending on your strategy and experience level. Online Marketplaces buy loan notes
Loan notes are legally binding debt instruments where an issuer (borrower) promises to repay a principal sum plus interest to a noteholder (investor) by a set date . : The initial amount you invest . : Some are "secured" against assets like property,
These platforms aggregate listings from various sellers, making it easier for individual investors to browse opportunities. Advantages and disadvantages of loan notes - Tees Law : The initial amount you invest
: Your return, which can be fixed or variable .
Buying loan notes (also known as promissory notes or mortgage notes) allows you to act as the "bank" by purchasing a borrower's debt . You earn returns through regular interest payments, much like a traditional lender . What Are Loan Notes?
: The duration of the loan, often ranging from 2 to 10 years .