Primestox
PrimeStox is one of those win/win ideas that make you glad to be alive. Commodities producers, mainly farmers or food producers right now, accept money (loans) secured against the produce they make after they have made it. If they cannot pay back the money you get the stock which you can keep title to or even take delivery of it yourself should you so desire. The producer getting the funds will get short term money for cashflow allowing them more security and shortening the time between spending on labor and materials and the cash inflow on payment. The crowdfunding platform transparently allows you to see who you are funding and allows the borrowers to make a pitch of their business and/or product. It makes the investor feel like a participant rather than a ATM.
There are some attractively good rates of return as well. One example: Scarlett & Mustard's superb salsa range will allow you to invest in them for as little as £20 offering a return of £1.60 in 4 months. £200 will yield £16 in the same period and if you want to go really crazy then go “Prime” for a greater chunk of cash to loan but a (slightly) better rate. This may not sound too tremendously exciting but an 8% return in 4 months represents a 26% apr, not at all bad when interest rates have been a lead balloon compared to inflation for the better part of a decade.
Of course there is risk, but the fact is that commodities will usually command some kind of price somewhere and you might just end up with a larder full of delicious salsa for your pains. The risk is soothed by the reasonable fees and the fact that you are not charged until the funding target is reached. Also you get paid at sale rather than after the company has made profit, and quick turnover makes it more fun to re-invest.
Terrific way to do things. Judging by the website, which is clean and simple, this company does one thing and does it really well. Not exactly burgeoning with producers at the moment but hopefully that will change with publicity and the seasons.