Investment Partners

P2P Lending with Money&Co.

Lily Bridgwood
Written by Lily Bridgwood

About Money&Co.

Money&Co. is a P2P business lending platform with full authorization from the Financial Conduct Authority (FCA) and approval to act as an ISA manager from HMRC.  Money&Co.’s CEO is Nicola Horlick, a well-known fund manager.  Money&Co. was founded in 2013 and the platform was launched in April 2014.  The platform aims to help small and medium-sized businesses in the UK to borrow money in order to grow and provides lenders with a better rate of interest on their cash.

Companies apply for loans via Money&Co.’s website.  Money&Co. has a proprietary credit analysis system, which allows the platform to determine whether a request from a borrower meets its lending criteria within 30 minutes. If a loan does meet the criteria, the application is passed to a credit analyst, who will arrange to meet with the potential borrower.  If the loan is suitable for Money&Co. lenders, the credit analyst will write a credit note and submit it to the Credit Committee.  A recommendation will also be made as to what credit rating the loan should have.

How Does it Work?

1. Get Started
Click on the Login or Register button at the top right-hand corner of the screen.

2. Register
Register your details, including bank account details, to transfer money for lending and for receiving interest and capital repayments.

3. Browse Auctions
Once you’ve been accepted (the law requires Money&Co. to check you are who you say you are) go to the loan auctions page and look at the businesses seeking funds.

4. Make Bids
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.

5. Get Returns
After the auction closes and the borrower has drawn down the loan, monthly payments will start the following month.  Money&Co. collects payments from the borrower and distributes the amounts due to each lender. If the loan is an amortizing loan, lenders receive some capital and some interest each month.  If the loan is interest only, lenders receive interest payments monthly and one capital repayment at the end of the term of the loan.

How Does the Money&Co. Loan Auction Work?

​​​​When a company has been approved and a credit rating attributed, then the auction will go live. You will be able to read about the company on the site and decide whether you like the look of the loan. The credit rating will provide guidance to you in terms of what rate of interest you should ask for. You will then have to decide how much you would like to lend to the company and at what rate of interest.

When the company has all the money that it has asked for, it will be able to close the loan immediately if it is happy with the overall rate of interest. Otherwise, they may keep it open for up to 14 days to try and reduce the overall rate. It is only when the auction has closed that you will know whether your bid has been successful or not. Whilst your bid is still live, you will not be able to use that amount of money to bid in another auction. If your bid is successful, you will start receiving payments at the rate of interest that you bid once the loan has been made. If your bid is not successful, that will almost certainly be because another lender has offered to lend at a cheaper rate. In that case, your money will be released in your Money&Co. account and you will be able to commit to another auction.

Please visit Money&Co. to find out more information on their current opportunities. Your Capital is At Risk. 

About the author

Lily Bridgwood

Lily Bridgwood

Lily is the Partnerships Associate at OFF3R. She has previous work experience in both the corporate and start-up environments. She joined the OFF3R team in October having recently graduated with First-Class Honours in International Business from the University of Edinburgh.