How loan notes work
A plain-English guide to the CM Beyer loan-note programme — what they are, how the interest works, and what to weigh up before you invest. No jargon, no commitment.
Do not invest unless you are prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. This page is educational and is directed only at qualifying investors under the FPO 2005.
Loan notes in one minute
A loan note is a way of lending money to a company for a fixed period in return for a fixed rate of interest. You are a lender, not a shareholder — you don’t own part of the business, and you don’t get voting rights. Your return doesn’t go up if the company does well. In exchange, you agree your rate up front and it doesn’t change.
With CM Beyer, you choose how much to lend and for how long — from £1,000 over 3 months up to longer multi-year terms. You receive interest along the way (or at the end, for short terms), and your original amount back on the maturity date. Because the notes are unsecured, repayment depends on the company continuing to trade well — which is why your capital is at risk.
The four steps
Choose amount & term
Pick how much to lend and the term that suits you. Longer terms earn a higher fixed rate.
Confirm & subscribe
Self-certify as a qualifying investor, review the instrument, and complete the subscription agreement.
Earn fixed interest
You receive interest quarterly for terms of 12 months or more, or in one payment at maturity for shorter terms.
Get your capital back
On the maturity date your full original amount is repaid, alongside any final interest due.
A worked example
Here’s what a £10,000 loan note over 3 years at the fixed 5.5% rate looks like — and a calculator so you can try your own figures.
£10,000 · 3 years · 5.5% p.a.
Try your own figures
Illustrative only, using simple interest at the fixed rate for the term. Not a quote or an offer.
How loan notes compare
Every option is a trade-off between return, risk, and access to your money. This is a simplified comparison, not advice.
| Easy-access savings | Company shares | CM Beyer loan note | |
|---|---|---|---|
| Your return | Variable rate | Uncertain — up or down | Fixed rate, agreed up front |
| Your money back? | Anytime | Only if you can sell | At the end of the term |
| Ranking if things go wrong | FSCS protected to limits | Last in line | Unsecured creditor — ahead of shareholders, behind secured/HMRC |
| Upside if company grows | None | Yes | None — you get your fixed rate |
| Protection | FSCS | None | None — not FSCS/FCA covered |
Is this right for you?
It might suit you if you’re a qualifying investor, you want a known, fixed return, and you can leave the money invested for the full term. You must also understand and accept that your capital is at risk and isn’t protected.
It’s probably not for you if you might need the money back early, or if you want capital protection or FSCS cover. The same applies if you’re not comfortable lending on an unsecured basis to an early-stage company.
Common questions
Am I buying shares in CM Beyer?
No. A loan note is debt, not equity. You’re lending money for a fixed return — you don’t get shares, ownership, voting rights, or a share of profits. Your return is the fixed interest rate, no more and no less.
When and how is interest paid?
For terms of 12 months or more, the company pays interest quarterly in arrears. For terms under 12 months, it pays all the interest in a single payment at maturity. Interest arrives gross by bank transfer, and you’re responsible for reporting it to HMRC.
Can I get my money out early?
Loan notes are meant to run to maturity. You can request early redemption with 90 days’ written notice, but it’s at the company’s discretion and isn’t guaranteed. You should plan for the money to stay committed for the full term.
What happens if CM Beyer can’t repay?
The notes are unsecured, so there’s no asset set aside to repay you. In an insolvency you’d rank as an unsecured creditor — ahead of shareholders, but behind secured creditors and HMRC. You could get back less than you invested, or nothing. No FSCS protection applies.
Who can invest?
The programme is open only to investors who self-certify as High Net Worth Individuals (FPO Article 48) or Self-Certified Sophisticated Investors (FPO Article 50A). You complete this certification before you can express an interest.
Is the rate guaranteed for the whole term?
Yes — your rate locks in at the point you subscribe and doesn’t change for the life of your note. That holds even if the company later offers different rates to new investors.
Bea is our AI assistant. Ask about rates, terms, eligibility, or the documents — or tap a question to get started.
