Enter your mobile phone number:

We'll send you a link to download Nivo, a secure communication app, so you can join easily and securely.

Director's Loan Account ISA

Use your ISA allowance for interest earnings when lending to your business.

Why an ISA?


Unlock savings for your business

Many small business owners don't have an ISA because they prefer to invest in their business. Now directors can use our platform to use their ISA tax allowance when lending to their company.

Each year, when your company needs funding, you can use our platform to privately syndicate your loan participants. You can choose how much to lend, from £10 up to the annual allowance (currently £20,000).

You may transfer in funds from other ISAs. If you need cash, you may access your capital on the Secondary Marketplace. Simple and straightforward, the IFISA process requires the transfer of bank funds or ISA holdings, which can then be used as normal.

By putting your loan through your ISA allowance you'll be able to benefit from efficiencies similar to those offered by your SASS provider.

Traditional Director's Loan Accounts pay 0% interest, with erratic repayments and informal arrangements, however a Director's Loan Account ISA changes this and also gives you an incentive to invest in your business.

Enter your mobile phone number:

We'll send you a link to download Nivo, a secure communication app, so you can join easily and securely.

Benefits of a Director's Loan Account ISA

Earn interest on your director's loan

interest paid to you by your business goes into your ISA

Set up in less than 20 min, renew annually

Reduce corporation and dividend tax

Formalised friends and family loans

Flexible loan agreement to suit your business

How does it work?


As a director, you make sacrifices. Interest on your savings should not be one of them.

Ordinarily, any interest paid on director loans is taxable. Now, thanks to the Innovative Finance ISA introduced in April 2017, it's possible to use your ISA allowance on your Director’s Loan.

This is achieved using a peer-to-peer loan agreement via a HRMC approved ISA Manager.

There are two types of business loans:

Amortising Loans have a fixed term from 2 to 5 years, with a 3.25% arrangement fee and no monthly fees

Interest-only Loans have no fixed term, no arrangement fee, and fees are 13.33% of interest

ISA fees apply at 0.1% per month of invested assets worth less than £150,000 or 0.05% per month of assets worth more than £150,000. This fee only applies once the account is earning above 2%; it does not apply for the first month.

Tax treatment depends on the individual circumstances of each client and may be subject to change in future. Capital at risk. Investments not covered by the FSCS.

Case Study

£150k ISA at 12% pa

James' business manages various assets from property to crypto currency.

James transferred his ISA to lend the funds to his company which allowed him to grow the business

  • Interest earnings reached £14,775.6 net of fees (£18000 - £3224.4) in year 1
  • His company saved corporation tax (at 19%): £3420 and he saved Income/Dividend tax (at 40%): £7200. The combined tax saving is: £10,620
  • So his net gains (taxes minus fees): £10,620 - £3224.4 = £7,395.6 This is equal to a return of 4.9%

Case Study

£20k ISA at 18% pa

Catherine had never used the ISA before because she had always preferred to invest in her own business

Catherine opened her ISA and loaned the funds to her company which allowed her to grow the business

  • Interest earnings reached £2900.12 net of fees (£3600 - £699.88) in year 1
  • Her company saved corporation tax (at 19%): £684 and Income (or Dividend) tax (at 40%): £1440 - Combined tax savings: £2,124
  • So her net gains (taxes minus fees): £2,124 - £699.88 = £1,424.12 This is equal to a return of 7.1%

Enter your mobile phone number:

We'll send you a link to download Nivo, a secure communication app, so you can join easily and securely.

Let us do the admin!


Arranging a privately syndicated loan with known peers is quick and easy.

Let us do the admin! Our platform is designed to quickly arrange your loan agreement. We hold funds in a segregated client account (like solicitors do) and we hold any security in a trust. As it's your loan you can choose to refinance at any time. Remember, the product creates a tax advantage, but the business need for the loan should be a primary consideration.

We are more than just a platform! Founded in 2012, we are one of the most experienced platforms in the market and our friendly team helps entrepreneurs every day. By helping to formalise the separation of personal and business finances, we help you prepare for external investment and we mitigate headaches because we understand the strains and challenges. Our mission is to help you create wealth.