New A-Rated, 8% Yield Loan Offering Lands On Site

The latest loan offering to be approved by our credit committee has an A rating, a five-year term and a fixed-rate yield of 8 per cent. The loan is 29 per cent funded at the time of writing.

TSM International is “a one-stop shop for online businesses and it operates across 240 different countries. It provides domain names and management, and it also offers various hosting services and web development tools to optimise web presence, while protecting and upholding trademarks and security.”

Below we provide an excerpt of the borrower’s pitch. As ever, we have made ever reasonable effort to ensure that these representations are true, but cannot warrant their truth. For full details, login here.

The funds were originally raised to further develop and implement TSMs software solutions that are used around the world. TSM is in the midst of securing a lucrative deal with a large blue-chip firm that will greatly improve the profitability and cashflow of the business moving forward. The company hopes to launch the Beta version of the new site for this client in later summer of this year.

  • The business has a good spread of customers (2215 clients spread across 6 continents) and, as no customer currently accounts for more than 20% of turnover, there is no concentration risk prevalent. Clients typically sign a 3-year contract and there is a high renewal rate demonstrating the great value TSM provides.

Loan Latest And IFISA Process Guide

  • Money&Co. lenders have achieved an average return of more than 8 per cent gross (before we deduct our one per cent fee). Our latest, property-backed offering from Seascape yields 8 per cent, has a five-year term, and is currently 13 per cent funded.

That figure is the result of over £17 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.

  • Money&Co. has been lending for over 5 years and has only had one bad debt so far, representing a bad debt rate of 0.04 per cent per annum.

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.