Investors buy unsecured loan stock from Green Pastures CBS Ltd.: 'Loan Stock' is the acknowledgement of a debt due from Green Pastures CBS to you as an Investor, which is repayable on a date you choose, and which entitles you to interest at the rate and on the dates you choose when you invest. 'Unsecured' means that in the event of a winding-up of Green Pastures CBS or appointment of an Administrator, your debt would rank on an equal basis with all other debts due, behind secured debts such as mortgage loans and those receiving preference by law, mainly those related to payroll.
Loan Stock applicants must be at least 16 years of age. (see 1. of Loan Stock Terms and Conditions when you have accessed our Loan Stock Application form).
In principle you can be a resident anywhere in the world to invest in Green Pastures Loan Stock, you do not need to be British. You will need, however, to check your local investment regulations and tax requirements to check that you are allowed to invest overseas in unlisted securities.
You can select an interest rate between 0% and 5% per annum if the term you select is for 2 years or longer. If your term is 1 year you can select an interest rate between 0% and 4% per annum.
The lower the interest rate you select, the more homeless people we can house & support.
The interest rate is fixed for the length of the term. Use our loan calculator below to see how many people your investment will assist.
The minimum term is 1 year and maximum term is 30 years. Investing for a longer term assists Green Pastures in our financial planning and our ability to access funds from other sources (bank loans & mortgages).
Minimum: £1,000. No maximum investment. To date, the most we have received from a single investor is more than £400,000.
How did we calculate this?
In principle, GP can borrow circa 60% from the bank, leaving 40% required from Loan Stock, therefore as bed space average cost is £35,000, £20,000 might come from the bank and £15,000 from Loan Stock. Loan Stock funding has to be in place before we can borrow from the bank, so on average, every £15,000 of Loan Stock enables us to buy another bed space. In practice, the amount we borrow from the bank depends on the supply of Loan Stock and demand for beds at any one time.
Less than 5%
A small number of our Partners are unable to pay the full return we need, so we have to subsidise them. We cannot afford to accommodate very many of these, so if you choose an interest rate lower than 5%, the forgone interest helps us to fill the gap and perhaps subsidise a few more.
These are approximate indications of how we use your Loan Stock funding, without which Green Pastures could not exist.