We offer a warm welcome to a returning borrower with an impeccable payment record, Mar-Key Group.
The company, in its own words, “designs, manufactures and delivers impressive temporary structures to the events, industrial and commercial industries throughout the UK and beyond. Mar-Key is a privately-owned British company based in Bournemouth, Dorset working through-out the UK and Internationally”. An example of the temporary structures Mar-Key specialises in is shown above – the media centre at a recent Open golf championship.
“Since the company received funding from Money&Co. in November 2014 it has experienced strong revenue growth from £3.12m (2015) to current ytd trading of £6.66m, more than doubling its turnover. Latest annual accounts for the year ended 31st March 2019 show turnover of £6.08m up from £5.60m in the previous year yielding an EBITDA of £357k for the year.The balance sheet total has increased to 2.35m at 31st March 2019 from the 2018 figure of £322k. In the last 3 years the company has moved premises at a cost of circa £350k and is now auditing for the first time. Mar-Key Group has taken this opportunity to review and undertake due diligence on its entire trading operation. This has been a significant cost (circa 200k) but sets the company up for its next growth period. This has reduced profitability in the short term but projections are now for EBITDA in excess of £1m per annum.”
Historical Performance And IFISA Process Guide
That figure is the result of over £17 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 2019/20 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.