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 simple 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, you don’t get voting rights, and your return doesn’t go up if the company does well. In exchange, your rate is agreed up front and 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
Interest is paid 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, you can leave the money invested for the full term, and you 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, you want capital protection or FSCS cover, or 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, interest is paid quarterly in arrears. For terms under 12 months, all the interest is paid in a single payment at maturity. Interest is paid gross by bank transfer, and you’re responsible for reporting it to HMRC.
Can I get my money out early?
Loan notes are designed to be held 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 on the money being 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. There is no FSCS protection.
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 — the rate is fixed at the point you subscribe and doesn’t change for the life of your note, 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.
