Scottish workers could double up with new ISA

Scottish investors are in the sights of a new financial product that aims to help small businessesaccessmuch-needed funding.

Online platform Funding Circle, which launched in 2010 in response to small firms being unable to access finance through traditional banks, has launched an Innovative Finance ISA, offering investors the chance to double the value of their annual bonus in just six years.

In 2017, some £76 million was lent through the platform to almost 2,000 small businesses across Scotland. It is estimated that those loans helped create and sustain about 2,300 jobs.

The ISA will offer investors the opportunity to make their bonus work harder by lending tax-free to established small firms. As many as two million people in Scotland will receive an annual bonus from their job this year, with the average bonus for a Scottish worker coming in at £1,110. Funding Circle says that could rise to £2,458 in six years via the ISA.