Register your details, including bank account details, to transfer money for lending and for receiving interest and capital repayments.
Once you've been accepted (the law requires us to check you are who you say you are) go to the loan auctions page and look at the businesses seeking funds.
Decide which borrowers you like and place a bid. You can bid to lend as little as £10 per loan until the auction closes. Prudent lenders will lend small amounts to several companies to spread risk.
A Process Guide To Innovative Finance ISA Investment
All loans on our site can be held, tax-free, via an Innovative Finance ISA (IFISA).So here's our guide to the process of getting hold of that tax break:
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 2018/19 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.