I believe they were advertising it as risk free during their last crowdfunding, as some kind of clever new way of getting more interest than banks offer (if I remember correctly)
I’m unsure whether this has changed recently, but it wasn’t long ago…
Is Dozens FCSC protected?
Are they FCA regulated?
Is there potential for capital loss?
So with all due respect, basically you’re commenting on risk without doing any diligent research, scrolling up in this thread nor even reading actual dozens marketing docs nor terms & conditions which would answer all those basic questions within mins. Baffling.
This was meant to be more of an open question (is 5% sufficient for this type of offering?) rather than something overly specific or hostile against Dozens
Happy to be convinced otherwise but in my mind, however small someone may interpret the risks, there is a level of risk associated this type of product
Sorry, I meant it was risky to be an investor in the company, not a customer. 5% that they have to fund as part of a marketing budget is not sustainable.
I’m not here to convince as I’m not a shareholder, but as far as the risk-return spectrum goes, there are few red flags here for me to suggest that 5% isn’t commensurate reward for the practically low short term risk. This is effectively easy-access, fully 1-2-1 backed saving. There’s no FSCS protection aka deposit insurance because it isn’t a necessity to quell a bank run because dozens isn’t a bank and thus is unable to lend out your money (it’s ringfenced).
At worst, this is a marketing gimmick.
At best, this is a genuine attempt to reward consumers with inflation beating returns for saving rather than spending.
In between, it’s just a customer acquisition cost.
Some selective takes, but one should trust the going concern, capitalisation, integrity of the security package and brand of Project Imagine/dozens savings before bidding for these bonds. Personally I do (i’d rank this 1 risk tier below P2P e.g. al la Ratesetter & their Provision Fund), but I’d equally understand an informed decision not to.
Does the Freetrade Incentivised Freeshare Referral programme also sound like a pyramid scheme to you?
It should do as they’re both fully financed exactly the same way: marketing budget!
In this latest AskAC vid, he literally hints that the bond programme almost borders on charity as they’re giving money away. The reason it’s not is that there’s a commercial aspect to the programme:
Does it make sense to give money away when they are so small (15K customers)? Monzo and Revolut had strong organic growth and started with their referral programmes much later down the road.
Freetrade has FCA protection. Dozens bond has no protection at all. It’s no different than a bond offering from M&S or House of Fraiser pre-bust. In a collapse savings are protected, bond holders I think come after any debtors owed money so would get pennies on the pound or nothing