Today we look at the second offering in the new tranche of loan auctions. Below is a snippet from the credit note of a loan that will be used to fund the borrowing company’s continued growth. It provides temporary structures for sporting and other events.
It’s an old saw – and a truism – that past performance is no guarantee of future behaviour. That said, this borrower is among the first Money&Co. facilitated credit for, and its payment record has been exemplary. Just saying.
Below is an excerpt from the borrower’s pitch. For full detail, please register or login.
Mar-Key Group is a leading supplier of rental structures to the highest quality corporate and sporting events in the UK. Mar-Key are also the only UK manufacturers of larger temporary and permanent aluminium structures. During the pandemic lockdown, events in 2020 and a significant number in 2021 did not take place, so the company has focussed heavily on the industrial and retail sectors offering solutions for temporary and permanent business expansion requirements for many household names with great success. Projects have ranged from Covid related (Morgues, testing, vaccination) to full industrial warehouses completely clad in steel insulated panels and sports facilities for the Premier League. In the case of school classrooms, we are achieving full building control including Part L. Mar-Key is a privately-owned British company based in Bournemouth, Dorset, working throughout the UK and internationally. The company has a strong growth profile with a record year expected in 2022 with 8M turnover expected which will continue to grow throughout 2023 to over 11M. The growth profile is supported by a strong foundation of annual contracted clients with multiple year security ranging between 3-5 years. In addition, many other jobs occur on a one-off basis each year in the form repeat clients, with Mar-Key boasting a client retention rate in excess of 97% year-on-year. The company has marquee structure assets book valued at 5.4m as of 31st December 2021 and c10m at replacement value. The number of full-time staff members is currently 88, with a senior management team of 12, who have been in place for the past 7 years. Staff retention rates are in excess of 95% year-on-year.
To provide additional working capital to facilitate further market growth.
Historical Performance And IFISA Process Guide
That figure is the result of over £24 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 2020/21 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.