The new loan from Mar-Key Marquees Limited, rated A+ , is making good progress. It is 28 per cent bid at the time of writing.
The company manufactures and rents out large marquee structures for events like the America’s Cup. The stock held by the company is of a high value as the posts for the structures are made of aluminium, as evidenced by its balance sheet value which is in excess of £2,000,000. The original amortising loans made to the company will soon be fully repaid.
We see this as a case study of what a security-backed loan should be. The aluminium poles that make the structures are the assets over which we take a charge, to be exercised in case of problems with the loan. There’s a ready market for this metal, and in (what we hope is the very unlikely) event of a default, the assets can be reclaimed and sold with ease and efficiency. Hence the rare risk rating of A+, our highest rating.
Other Loans Latest
Fuller detail is excerpted from the borrower’s offering on site below. The whole pitch – vetted according to our credit committee’s best efforts, though we cannot warrant the accuracy of the statements – is available to logged in users.
Historical Performance And IFISA Process Guide
That figure is the result of over £18 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.