Discover Nicola Horlick's Best Money Decision - Plus Loan Latest
This piece on our CEO in The Mail on Sunday needs little further explanation from us. We run a couple of short extracts below.
Former fund manager Nicola Horlick stopped investing in shares just before the credit crunch hit in 2007 and has not put a penny into the stock market since.Horlick, 58, currently standing for Parliament as the Liberal Democrat candidate for Chelsea and Fulham in London, credits her entrepreneurial father with giving her the drive and self belief to succeed in life.She lives in London with second husband Martin and has five children. As well as running her own money-lending business, Money&Co, she is a big supporter of cancer charities and Great Ormond Street Hospital in memory of her daughter Georgina, who died of leukaemia aged just 12.
The best money decision you have made?
Setting up Money&Co. I have personally invested large amounts of money in it and it is doing well. It allows individuals to lend money to good quality British companies, offering a better yield than cash to individuals and enabling companies that need money to grow and employ more people.On average, since we started lending in 2013, investors have received an annual income of 7.3 per cent – tax-free if wrapped in an Isa. We've got a low bad debt rate and I expect it will be the most successful business I have ever built.
Mar-Key 6, rated A+, is 38 per cent filled at the time of writing. The yield on offer is 7 percent.
Platform lending of the kind we facilitate here at Money&Co. can be a lucrative activity. The average yield achieved by our registered lenders over more than five years of loan facilitation on this platform is more than 8 per cent, before we deduct our one per cent charge. That return has handsomely outperformed retail price inflation, which has averaged around two per cent over this time.
Of course, there's no profit without risk. We vet potential borrowers extremely carefully, but there is a bad debt rate, albeit a small one, of an annualised 0.04 per cent across five years and some £19 million of loans. We make a point of highlighting the risk that comes with P2P – see the foot of this article for a full examination of risk, access and yield provisions, the risk warnings on the Home Page, in FAQs and elsewhere on site.
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 £19 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.