Money at Work: Instant Finance's secured first ranking debenture stock

What is it called and what sort of savings product is it?

Instant Finance's secured first ranking debenture stock.

Who is the company behind it?

Instant Finance is a family-owned business first established as Manhattan Finance in 1971.

Who is the target market?

Investors wanting a regular income and who are prepared to invest in a consumer lending finance company.

What return does it offer?

The company's carded one-year rate is 9 per cent and two-year rate sits at 9.50 per cent.

When was it launched?

Instant Finance is one of the older finance companies tracing its roots back 35 years.

What other products is it like or is it competing with?

This is just one of the many finance company debenture offerings in the market.

Is it long term, short term or medium term?

It offers rates with terms from three months to five years.

What is the unique selling point?

We picked Instant Finance because it has started offering investors better rates if they invest through an adviser or broker. Also, it recently fought off a complaint about its advertising.

How strong a stomach do you need for it?

It has a B3 rating which suggests its risk is moderate for a finance company.

What's the hitch?

Instant Finance is considered to be at the higher risk end of the market. Research reports say it is well-managed.

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