Ahead of the arrival of a suite of loan offerings – coming soon – we bring you more from the “creeping crypto” school of news. Our friends at Crowdfundinsider report on the latest step in the integration of cryptocurrencies and “mainstream” life:
The team at Fintech Deel notes that if your business holds money in stablecoin USDC, then you can pay your monthly Deel invoice for your team’s earnings in USDC “directly from your Coinbase account.”
Deel‘s management recently confirmed that they are (reportedly) the first company in the global hiring space to allow businesses “to pay their international team using Crypto, starting with USDC.” That is because flexibility “shouldn’t just be about where you hire, but also how you pay your team.
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.