We're heading towards what's known as "ISA season". That's the last quarter of the tax year, ending in early April, when investors commit the majority of the many billions invested in Individual Savings Accounts (ISAs) - the vehicles that allow you to commit up to £20,000 free of any tax on income or capital gain.
We believe – as we've argued on this site many times - that seasonal investing is not helpful, just a function of human nature and our general addiction to doing things at the last minute. It's especially unhelpful to leave things late when loans can be held in our Innovative Finance ISA. Why pay tax if you don't have to?
To get the full benefit takes a two-step process: first, lend; second open an ISA. Below, we reproduce text on how to lend. Click on this link to activate the how-to-lend video.
Register your details, including bank account details, to transfer money for lending and for receiving interest and capital repayments.
Once you've been accepted (the law requires us to check you are who you say you are) go to the loan auctions page and look at the businesses seeking funds.
Decide which borrowers you like and place a bid. You can bid to lend as little as £10 per loan until the auction closes. Prudent lenders will lend small amounts to several companies to spread risk.
After the auction closes and the borrower gets the funds, monthly payments will begin. We distribute these payments to you, the lenders.
Our latest auction, GH6, is 20 per cent funded at the time of writing. The loan offer has a risk rating of "A" and has a fixed gross rate of 8 per cent.
Money&Co. brings individuals looking to get good return on capital with carefully vetted small businesses seeking funds to grow. In addition to new loan offerings, our secondary loan market, offering existing loans for sale by lenders, is available to registered Money&Co. users.
All loans can be held, tax-free, in an Innovative Finance Individual Savings Account, or Innovative Finance ISA.
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 an earlier article on security, access and yield.
If you haven't made a loan via Money&Co. before, please read the risk warnings and the FAQ section. You may also wish to consult a financial adviser before making an investment. Capital is at risk, once loaned.