Having achieved a very rare A+ risk rating after Money&Co.’s rigorous credit analysis, Mar-Key has an offering on site as it looks for long-term growth. Here is an extract from its pitch.
“Mar-Key Group is a manufacturer and installer of large structure Marquees for major events, weddings and industrial structures. We also manufacture small marquees for hire or resale. Mar-Key is a privately owned company based in Dorset and has current contracts worth £2.1 million per annum most of which are for between 3-5 years.
The company achieved strong growth in 2013-4 and won a major new 5-year contract with Ascot Racecourse, entailing the manufacture of a large 2-tier marquee. It has had to invest considerable funds from its cash flow to manufacture such structures which will be highly profitable over the 5 years of the contract. A loan from Money&Co. will allow us to continue to take on large-scale projects, funding them in the short-term but reaping the rewards over the course of the contracts.”
Loan Latest
Mar-Key 6, rated A+, is 34 per cent filled at the time of writing. The yield on offer is 7 percent. Platform lending of the kind we facilitate here at Money&Co. can be a lucrative activity. The average yield achieved by our registered lenders over more than five years of loan facilitation on this platform is more than 8 per cent, before we deduct our one per cent charge. That return has handsomely outperformed retail price inflation, which has averaged around two per cent over this time.
Historical Performance And IFISA Process Guide
That figure is the result of over £19 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.