22 May 2019 6:37 AM
Untie Lending AB is launching a new investment product.
The issuing of preference shares gives 7% in dividends with possibility to get monthly payout.
Investing in preference shares is an alternative to stock market. The return is stable, yet far above interest funds and traditional bank accounts. This type of shares is be a big advantage if you want a stable dividend over time. In addition, it is not on the stock exchange and is traded based on nominal value.
"Since the minimum amount is only 2 000 SEK, this is a good option for both savers and companies", says Erik Hagelin, CEO.
Untie Lending AB is an established lending company and has been profitable from the start. The company has only private individuals as borrowers and so far, 3 000 customers. The application process is fully automated, which has generated small credit losses.
In Sweden there are currently over 30 preference shares traded on different exchanges and the majority are companies in the unstable business of real estate.
There are a few similar preference shares with stable returns aimed for private savers. However, it should be considered that the investment is not covered by the Swedish deposit insurance.