New Loan, Fixed-Rate 8% Yield, Is Music To Lenders’ Ears

We’re pleased to report good progress on the latest loan offering to land on site. Project Rhapsody has an A risk rating, and offers a fixed-rate return of 8 per cent over five years. It’s 25 per cent funded at the time of writing.

Below we offer an excerpt of the borrower’s pitch.

  • Log in or register for full detail. As ever, we’ve done due diligence but cannot categorically warrant that the representations are true. Read risk warnings on site. Our current annual bad debt rate is 0.03 per cent over more than five years (see also risk explanations and associated articles below).

The team behind this business were originally part of a very successful music band that won a Brit Award in the noughties. Shortly after that they decided to help other make music and start writings song and co-produce music for A list and up and coming artists from around the world.

They have been Grammy-nominated multiplatinum songwriters and music production team. The teams production catalogue includes multiple international hits. Frequently in Music Weeks top songwriters, their songs have 3 billion Spotify streams as well as more than 25 million record sales globally. They recently composed a music track for one of Netflix’s most popular shows and have co-produced and co-composed a US Number 1 single which has sold more than 8 million copies worldwide. The team also have a music publishing joint venture with a global independent rights management and music services company that own and/or administers works by A list songwriter-artists.

Purpose of Loan

The primary purpose of the loan is to provide working capital to the business so it can continue to collaborate to produce high quality music. Security is being provided in the form of a debenture which encompasses music rights held by the company (and future royalty income that will flow through). A clause will prevent sale of the music rights to a 3rd party whilst the loan remains outstanding. The business has a strong track record of regular income from this source and the rating provided reflects this.

New Loan Latest

The new loan offering on site is a second tranche offered by Yes You Can. It’s a B-rated offering, over of five-year term, with a fixed rate yield of 11 per cent gross.  It’s seven per cent filed at the time of writing.

The whole pitch – vetted according to our credit committee’s best efforts, though we cannot warrant the accuracy of the statements – is available to logged in users.


Historical Performance 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). 

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 0.03 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.