EIS Diploma Welcome News For AltFi Equity Investors


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Today we look at a welcome move on the equity side of the crowdfunding fence. The Enterprise Investment Scheme Association (EISA) has relaunched its EIS Diploma in a bid to attract more independent financial advisers to recommend the alternative investment, reports Citywire.

"EISA is a trade body that represents the people connected to the Enterprise Investment Scheme (EIS), which is a tax-efficient way to lend to SMEs. Members of EISA include advisers, fund managers and wealth managers.

In 2014, EISA created the diploma to help IFAs navigate EIS and to date 300 people have gained the accreditation. Now the body has relaunched the diploma, which has been updated in accordance with new regulation and also includes a section on how EIS can be applied to financial planning."

Increasing awareness and raising professional standards can only be good for investors and advisers across the whole range of alternative finance. At Money&Co., we facilitate loans to relatively mature borrowers (the average age of SMEs is over 12 years) and the risks of debt investment versus equity investment are explained on site. Below we run an excerpt from our Knowledge Hub.

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  • Spreading your loan offers is a good idea. All Money&Co.'s borrowing companies have been through a careful credit-analysis process, but there is always a risk that a borrower might default on debt. We protect lenders' interests by taking a charge on the assets of the borrower, but please be aware that there is no profit without risk. Spreading money across several borrowers is seen by many commentators as a good way of spreading risk.
  • Access to your money when you become a P2P lender is typically not as instant as withdrawing cash from an ATM or a bank. Lenders can sell their loans to other lenders in the loan market. Sometimes it may take a while to liquidate a loan.Read the risk warnings on site. As we've stated above, there can be no profit without risk. If you're at all unsure about any of this, consult a lawyer, accountant or professional investment adviser.
  • If you're involved in an auction process, watch that process carefully. There may be lots of bids at the end of the auction period, and the more expensive money gets driven out at the end as the borrower accepts the lowest bids.

Money&Co. is in the P2P business-lending sub-sector of crowdfunding, and is part of the fast-growing trend in crowdfunding loans.



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Disclaimer: Money&Co.™ is the trading name of Denmark Square Limited, Company Number 08561817, registered in England & Wales, authorised and regulated by the Financial Conduct Authority (FCA). The company is identified on the Financial Services Register under Reference Number 727325. The registered office is 58 Glentham Road, Barnes, London, SW13 9JJ where the register of Directors may be inspected. Denmark Square Limited (ISA manager reference number Z1932) manages the Money&Co. Innovative Finance ISA.