The phrase “political risk” takes on new significance in the context of cryptocurrencies, that fast-growing sector of the FinTech world. Today, for example, we cast an eye on news brought to us by our friends at Crowdfundinsider: the new crypto launch is interesting enough – but what are the remedies of something goes wrong in Croatia? It’s a moot point, one that well illustrates the risk factors in play.
More than 20,000 investors are now signed up with Croatian peer-to-peer lender Robo.cash.
Robo.cash writes in a blog post that the month of October 2021 made them happy with a new milestone: over 20k investors have now registered on the Robo.cash platform. The platform’s management noted that they really appreciate that you share your financial goals with them.
In October, already over 800 clients have joined Robo.cash, bringing the total number to 20,196, the company revealed. The average investment is presently 4,034 euros, which is “21% more than at the beginning of the year.” In total, investors have “earned more than 4.4 M euros,” the update noted.
Historical Performance And IFISA Process Guide
That figure is the result of over £24 million of loans facilitated on the site, as we bring individuals looking for a good return on capital together with carefully vetted small companies seeking funds for growth. Bear in mind that lenders’ capital is at risk. Read warnings on site before committing capital.
All loans on site are eligible to be held in a Money&Co. Innovative Finance Individual Savings Account (IFISA), up to the annual ISA limit of £20,000. Such loans offer lenders tax-free income. Our offering is an Innovative Finance ISA (IFISA) that can hold the peer-to-peer (P2P) business loans that Money&Co. facilitates. For the purposes of this article, the terms ISA and IFISA are interchangeable.
So here’s our guide to the process:
The ISA allowance for 2020/21 is unchanged from last tax year at £20,000, allowing a married couple to put £40,000 into a tax-free environment. Over three years, an investment of this scale in two Money&Co. Innovative Finance ISAs would generate £8,400 of income completely free of tax. We’re assuming a 7 per cent return, net of charges and free of tax here.
Once you have made your initial commitment, you might then consider diversifying – buying a spread of loans. To do this, you can go into the “loans for sale” market. All loans bought in this market also qualify for IFISA tax benefits.
Risk: Security, Access, Yield
Do consider not just the return, but the security and the ease of access to your investment. We write regularly about these three key factors. Here’s one of several earlier articles on security, access and yield.