Our friends at P2P Finance News recently came calling.
Money&Co is looking to expand its lending into TV and film rights as well as other areas of legal finance such as divorce.
The peer-to-peer business lender has already pivoted into the niche areas of music loans and litigation finance, and chief executive Nicola Horlick said she is keen to explore other specialist segments of the market.
“TV and film rights are other areas that we can lend in, and there’s a vibrant market in selling the rights,” she said.
“I think that’s the next area I’ll be investigating along with other areas of legal finance. There are still divorces, housing claims and perhaps more with the recession.”
Horlick told Peer2Peer Finance News in June that the platform was lending with caution even prior to the pandemic, due to concerns about a Brexit-induced economic downturn. It decided purely to offer secured loans, focussing on music loans and litigation finance.
Historical Performance And IFISA Process Guide
That figure is the result of over £20 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.