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.
Loan Latest And IFISA Process Guide
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.
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.