Money & Co Review

The number of peer-to-peer lenders continues to grow which is a positive factor for those seeking alternative sources of lending as the banks still continue to "drag their feet" in this respect. Choice Loans remain committed to adding such reputable lenders to their ever-growing panel.

A recent addition to the list of peer-to-peer lenders is Money & Co that commenced operations in March 2014 with Nicola Horlick as joint CEO.

Below we provide a review of Money & Co's operation:

Who do Money & Co lend to?

Loans are available to established UK small and medium size businesses of LLP or limited company status. They must have a turnover of at least £100,000 per annum, have filed three years accounts and have remained profitable for the last full financial year providing a good generation of cash.

How much can you borrow?

The minimum loan is £50,000 and the maximum loan is £3 million. The loan is repayable on a capital and interest repayment basis over 1 to 5 years.

As security, a debenture will be required over the business's assets and personal guarantees may be required. However, if the loan is for in excess of £2 million, security over property is also required although you can offer deed security for any loan amount to strengthen your application.

Purpose of loan

Loans are made available to help a business grow so can be used for such things as the purchase of premises, fixtures and fittings, plant and machinery, stock and working capital.

Interest rate and charges

The fixed interest rate is likely to be in the region of 6% to 10% per annum depending upon the risk rating with the average rate being around 8% per annum

There is an application fee of £50 payable when submitting the application that is deducted from the arrangement fee if the loan is drawn down.

There is a listing fee of £100 payable when the loan is placed into the auction that is deducted from the arrangement fee if the loan is drawn down.

The arrangement fee is between 1.5% to 5% of the loan amount depending on such factors as the amount and length of the advance.

Security and valuation fees are also payable by the borrower.

There is no early redemption penalty.

 Procedure

The borrower completes a loan application form for Money & Co whose credit analysts check the business applicant's financial situation and give it a credit rating with this affecting the interest rate they would pay on a loan. If successful, the loan is auctioned for a period of 14 days. Potential lenders bid an amount they are prepared to advance and the interest rate they want. The borrower pays the average rate offered by the various lenders. If the loan is fully funded, any more bids at a lower rate will remove those lenders wanting a higher interest rate thus reducing the average rate payable. If the borrower accepts the offer at the end of the auction period the monies should be transferred to the borrower's bank account within 2/3 days as long as the security formalities have been completed. The borrower then starts to make monthly repayments.

If you wish to progress your enquiry further please telephone us on 0845 1260350 and we will be pleased to help.

We trust that the above has proved informative.