Valour Group (UK) has launched a mini-bond to raise up to £5million from private investors. The money from The Valour Group Bond has an annual interest rate of 8.49% per annum, will be used to grow the loan book of the company’s lending subsidiary Savvy.co.uk.

Mini bonds are an unsecured way for individuals to lend money directly to businesses. Any investments into bonds like this are not covered by the Financial Services Compensation Scheme and professional advice should always be sought before investing.

Valour Group CEO, Mark Bowker, said: “As a company we have zero external debt and have delivered a healthy 17% pre-tax profit margin so this is the ideal time for us to take on some external debt to enable our online lender Savvy.co.uk to grow further.

“Savvy.co.uk has been trading for several years and we believe in creating ‘Win-Win’ relationships. This is why we are offering 8.49% per annum to private investors rather than to a single large institution. We have developed robust systems for credit-checking, fraud prevention and responsible lending which is reflected in Savvy’s low arrears and delinquency rates. We now want to increase the value of our loan book with investment in the Valour Group Bond.”