More than half-way there… 54 per cent of our latest loan offer has already been raised from interested lenders.
The loan will close when filled.
The firm specialises in a wide range of legal sectors. These include Dental Negligence, Housing Disrepair, Professional Negligence, Employer’s Liability and Road Traffic Accidents.
Davies&McGrath Credit Application 2 Financial Summary Revenue has increased due to the growth of the conveyancing business although this carries a lower margin. This has also led to a rise in the number of employees, which accounts for the majority of the increase in administration costs. Debt was taken on to help deal with the pandemic and also to help with the increased working capital requirement resulting from the growth in revenue. Further debt is required to fund a substantial personal injury claim.
The business is continuing to grow its conveyancing business with revenues expected to double by 2023. This does not include the revenues from the conclusion of the large personal injury claim being conducted, which is expected to contribute around £780,000 to revenues. The case concerns a site operative at an anaerobic digestion plant.
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.