P2P Sector Set To Make Inroads Into SME Funding - Plus Loan Latest


The peer-to-peer (P2P) lending sector is looking to expand its share of SME funding, according to PWC research.Money&Co. is a P2P lending platform that brings together individuals looking for a good return on capital together with carefully vetted small businesses seeking funds for growth. Our registered lenders have achieved average gross returns of more than 8 per cent in the five years we've been facilitating loans, now totalling more than £15 million.

PEER-TO-PEER and other alternative lenders could 'disrupt' more than a third of business lending by 2030, new research claims.A new report from accountancy giant PwC, called 'harnessing the power of disruption', identifies key financial services areas open to – and already being impacted by – advances in technology, changes in demographics and customer behaviour.In the UK small- and medium-sized enterprises (SME) sector, the report found that new digital entrants such as P2P lenders could dominate the market for underserved business borrowers, representing £4.1bn or 37 per cent of lending.It warned that new entrants could face the pressure of regulatory scrutiny or a full economic cycle but said that this does not mean established brands can rest on their laurels.The report suggested that financial services firms should keep a close eye on changes in appetite among their customers, highlighting the emergence of P2P lending as a "preferable option" for those not able to access lending through mainstream sources.

8% Yield Loans -Latest

  • The latest tranche of the Seascape offering has just been released to market. The offer is for £250,000, with a fixed-rate yield of 8 per cent. The term of the loan of five years. It's 28 per cent subscribed at the time of writing.
  • The £150,000 property-backed loan, North-East Property Investment, has a fixed-rate yield of eight per cent over three years. It's 83 per cent subscribed at the time of writing.
As ever, we've made our best efforts in due diligence and credit analysis before awarding this loan an A rating. However, we cannot warrant that the representations of the borrower are true – though clearly we believe them to be so.
  • Please remember there is always an element of risk, and capital loaned is at risk. See risk warnings at the foot of this article, on our Home page and in FAQs on site.

A Process Guide To Innovative Finance ISA Investment

Money&Co. lenders have achieved an average return of more than 8 per cent gross (before we deduct our one per cent fee). That figure is the result of almost £15 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:
  • Step 1: Register as a lender. Go to the login page, and go through the process that the law requires us to effect. This means we have to do basic checks on you to comply with money-laundering and other security requirements.
  • Step 2: Put money into your account. This is best done by electronic transfer. We can also process paper cheques drawn in favour of Denmark Square Limited, the parent company of Money&Co.
  • Step 3: Buy loans in the loan market. Once you've put cash in your account it will sit there - and it won't earn interest until you've bought a piece of a loan. It's this final step that requires lenders and IFISA investors to be pro-active. Just choose some loans - all loans on the Money&Co. site can be held in an IFISA - and your money will start earning tax-free interest.
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.

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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.