We are pleased to announce the imminent launch of a new loan offering of £50,000 on site from an established borrower. The GH6 (sixth tranche) loan is a fixed-rate 8 per cent yield for a three-year term. Below we offer an extended excerpt from the borrower's pitch (we have used our best endeavours but cannot warrant the truth of these representations). As we write, the loan offer is in the process of being published on site.
The company is acquiring a stake in a financial services business with a view to acquiring the whole business in due course. The underlying business was established over 5 years ago and it funds small private equity deals in the UK. Its investors are high-net-worth individuals. As this is a financial services business originating private equity deals, there are no suppliers as such. However, the underlying company has close working relationships with accountancy firms and solicitors practices, who bring potential management buy-outs and management buy-ins to them. The purpose of the loan is to help finance the purchase of a stake in the underlying business. The underlying business has experienced exceptional growth over the last three years and has become extremely cash generative. Like many financial services companies, it is operationally geared, needing a team of relatively highly-paid executives in order to generate deal flow. The company receives fees when deals are completed and so the business needs to have a steady flow of deals in order to keep increasing profitability. Currently there is no shortage of deals and so the forecasts suggest that profits will continue to grow over the next three years.
Money&Co. brings individuals looking to get good return on capital with carefully vetted small businesses seeking funds to grow. In addition to new loan offerings, our secondary loan market, offering existing loans for sale by lenders, is available to registered Money&Co. users.
All loans can be held, tax-free, in an Innovative Finance Individual Savings Account, or Innovative Finance ISA.
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 an earlier article on security, access and yield.
If you haven't made a loan via Money&Co. before, please read the risk warnings and the FAQ section. You may also wish to consult a financial adviser before making an investment. Capital is at risk, once loaned.