Since Hunter Jones Group's alternative investments involve the likes of loan notes, its investors are given the same securities that any lender would receive – including security charges.
The holder of “First Charge” is simply the lender or lenders who invested their money in the form of a loan to developers – and, in the event that the borrower defaults on the loan, the holder of First Charge can rest assured that their loan is backed by the property, land, or similar asset.
A debenture is simply a way to ensure that investors can, if need be, gain loan repayments against the assets of the borrower.
These can take two forms: a floating charge or a fixed charge. A fixed charge is usually taken out against something like land or property: if the loan defaults, the investor can sell off those kinds of assets.
On the other hand, a floating charge is used to back loans against less concrete assets like shares.
You could lose all of your money invested in this product. This is a high-risk investment and is much riskier than a savings account.