All business look for a unique selling point. Many claim to have a USP, even if they don't. But we really do have something that makes Money&Co. special – we think perhaps unique – in the P2P crowdfunding sector. Our management company also has fund-management authorisation from the Financial Conduct Authority. This means our lenders don't necessarily have to "do it themselves". With most P2P platforms, lenders come to the site and select the pre-vetted loans. Then they make their own choice, and lend.
All investment managers are overseen by the FCA, which interests itself specifically in the safeguarding aspects of the process – transparency, clarity of process, demarcation of funds, etc. The FCA also gives permissions to certain peer-to-peer (P2P) platforms to offer loans and wrap them into the tax-efficient device of an Individual Savings Account (ISA). Money&Co. was amongst the first P2P lending platforms to get such a permission.
At Money&Co., we offer the option for lenders with £100,000 or more to lend via a managed portfolio service. This is no DIY product – we take the capital and spread it across our loan book, diversifying to mitigate risk (remember: capital loaned is by definition at risk – no matter how carefully we vet the borrowing companies).
There's a video that explains the portfolio service on site. CLICK HERE for more. We run a testimony, repeated here, from a satisfied lender, Edward, a lawyer: "The Money&Co. Portfolio Service allows me to lend my money with ease. The experienced team manages everything whilst giving me total access and visibility through my account."
We currently have two A-rated, fixed-term loans on site right now. With fixed rates of 8 and 9 per cent and fixed terms of three and five years; they will close when filled.
Peer-to-peer (P2P) lending is about bringing individuals seeking a good return on capital together with businesses seeking funds to grow. The average gross return achieved by lenders is 8.6 per cent (7.6 per cent net). This compares with 1.3 per cent, which is the best return currently available on cash deposit with a bank or building society, according to comparison sites such as Moneyfacts. See also risk factors, at the foot of this page.
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.