News Briefing - Crowdfunding, SME And Alternative Finance

crowd children

1.UK – P2P

 

Your Money reports an IFISA launch from RateSetter:


“Peer-to-peer lending platform RateSetter has launched an Innovative Finance ISA offering investors returns of up to 6% depending on how long they’re prepared to lock money away.

The P2P platform is making the ISA available to existing customers first while new customers will be able to open the product from 1 March onwards.

The average interest rates are between 3% and 6% depending on the length of time the money is invested. Its shortest duration investment is one that rolls over month by month and the average rate is 3.1%. The longest duration is five years and the average interest rate is 5.8%.

One of the key benefits of a P2P ISA is that earnings are tax-free.

RateSetter, which has 50,000 investors and 200,000 borrowers, said it will allow existing ISA money to be transferred to it in April. However, it wasn’t able to confirm whether this will be made available before the end of the tax year (5 April).

It confirms the ISA is flexible which means you can put money in and take it out without losing the tax-free allowance. For example, the current allowance is £20,000. You could put £10,000 into the ISA and then withdraw £5,000, meaning you would still be able to deposit £15,000 into the ISA.”


2. UK – P2P

 

Northern Provident Investments is a newly launched business that provides white-label IFISA management services. It will offer:

 

  •  Investor certification
  • Both new IFISA applications as well as ISA transfers
  •  Cash investments
  • Application process for IFISA transfers and new account opening, with a process flow and data capture form for each
  •  Capabilities including ID/AML, payment services for IFISA and cash investments, and IFISA administration
  • Automated documentation completion
  • Client file upload, to facilitate requests for verification documents such as utility bills or bank statements
  • Logo, branding and design capabilities. The software will be developed in line with your branding and logo design. The graphic layout will be agreed and built according to your needs
  • Email capabilities
  • Report building within the internal system
  • Client dashboard facility for clients to review their application, investments and agreements
  • Annual statements

 

 

3. UK – EIS/VCTs

 

What Investment runs a blog that looks forward to prospective changes to t EIS and VCT structures in the Autumn Review.

 

“In the investment industry there is widespread expectation that the rules around the tax-beneficial VCT and EIS/SEIS investment schemes will change. And so, it may be that professional investors and IFAs alike will be taking a fresh look at where they make their VCT and EIS investment allocation, and the composition of their investment panels.

While for many high-earners the VCT and EIS space may still be somewhat mystical, the industry has developed significantly in recent years. Since the establishment of the EIS scheme in 1993-94, over 26,000 companies have received some £16.2 billion, and approximately £6 billion has been invested through VCTs. Compared with other parts of the investment scene this is relatively small, but it is clearly an established industry that provides a viable and consistent investment channel for UK high-earners.

The increased ‘depth’ of the industry has also been accompanied by the institutionalisation of the space, with a growing number of professional investment managers and advisers, and a strong ecosystem of tax advisers, regulatory consultants, custodians, law firms and so on. The point is that the VCT and EIS space is now a core part of the UK’s innovation financing system, and the government recognises that. Here, Iliev reviews some of the comparative aspects of VCTs and EIS/SEIS investments, and focuses on the choice between different VCT and EIS fund service providers, in the context of policy change.”

4. US – P2P

 

Lending Club has scheduled its latest quarterly results for next week, according to Crowdfundinsider:

 

During the Q3 earnings call, LendingClub provided the following guidance for Q4 of 2017;

·       Total Net Revenue in the range of $158 million to $163 million.

·       Net Income (Loss) in the range of $(7) million to $(3) million.

·       Adjusted EBITDA in the range of $19 million to $23 million.

·       Reconciling Items between net loss and non-GAAP adjusted EBITDA consisting of stock-based compensation of approximately $15 million, and depreciation and amortization and other net adjustments of approximately $11 million.

 

 

5. US – FinTech

 

Crowdfundinsider reports a significant coup for Goldman Sachs.

 

“Online lending eventually will be the norm, not the exception. As bricks and mortar ebbs away, Fintech is filling the void due to demand and the sheer efficacy of the online lending process. Indicative of this systemic trend is a report this week in WSJ.com saying Apple may be cutting a deal with Marcus – Goldman Sachs’ vision of the future on online lending.

Marcus, launched in 2016, reported it had topped $2 billion in online lending this past quarter. Marcus’ success makes it a significant player in the online lending sector.

Marcus was apparently launched after Goldman Sachs considered several different paths to enter the online lending sector with chatter indicating the bank had considered acquiring an established platform. In the end, Goldman did their own thing building their platform from the ground up – a decision that appears to be delivering on its mission. Marcus, according to industry insiders, benefits from its low cost of capital as it has access to consumer deposits.”