
Considering that a three-percent return on common bonds is seen as high, there is no reason to doubt why individual investors are flooding to seven-percent return rates provided by mini-bonds. A rapidly growing number of well-established companies in the UK that are raising growth capital are looking to the public for sources of finance, and skipping the banks. Within a matter of a few weeks, companies have been able to borrow millions, at a rate much less than that offered by banks. However, due to the nature of the mini-bonds, many questions are starting to arise with this new ‘hot’ form of ‘easy’ financing. Is the high risk worth the high return? Is the individual investor protected enough?