How Loan Notes Work
A loan note is essentially a formalised loan between an investor and a company. Unlike shares, you do not acquire any ownership, voting rights, or equity stake. Instead, you lend a specified amount of money for a fixed period and receive interest payments in return.
At the end of the term (maturity), the company repays your original investment (the principal). Interest is typically paid quarterly during the term, or on maturity for shorter notes.
Key Features
Fixed rate: The interest rate is agreed at subscription and does not change during the term.
Fixed term: You choose how long to invest — CM Beyer offers terms from 3 months to 10 years.
Unsecured: CM Beyer loan notes are unsecured, meaning they are not backed by specific company assets. This means higher risk but typically higher returns than secured instruments.
Not transferable: Loan notes cannot be sold or transferred to another person without the Company’s consent.
Who Can Invest?
Under UK financial promotion rules, CM Beyer loan notes are only available to individuals who qualify as high net worth individuals (annual income £100,000+ or net assets £250,000+) or self-certified sophisticated investors. You must complete a self-certification before expressing interest.
Important Risks
Your capital is at risk. Loan notes are not covered by the Financial Services Compensation Scheme (FSCS) and you may lose some or all of your investment if the Company becomes insolvent. CM Beyer is not regulated by the FCA. You should consider seeking independent financial advice.
