To address the increasing interest in marketplace lending, we are launching the onboarding of business entities to TFGcrowd Investing platform. It gives corporate and institutional investors an opportunity to create business accounts and allocate capital to our projects along with the individual investors.
Why investing via a company can give you more benefits?
A business account allows investing larger amounts of money with lower tax rates applied to interest income compared to individual investors.
For example, in the UK individuals can use Innovative Finance Investment Savings Accounts (IFISA) to invest annually up to 20,000 GBP tax-free on P2P marketplaces. Otherwise, the basic (20%), higher (40%) or additional (45%) tax rate (defined based on your annual net income) is applied to all interests earned excluding your personal allowances (up to 1,000 GBP per year depending on your income level). If you are a higher tax rate payer, the amount of personal income taxes due will be more than twice bigger than the corporate tax (19%).
Why marketplace lending is one of the best options to allocate capital now?
- Low correlation with equity market trends during the crisis
Compared to other classes of assets, P2P lending returns have a low correlation with the equity market volatility. Thus, an economic slowdown is a point when business entities can use the full advantages of this investment instrument. Among them, the ability to address consumer demand shifts, easy access to crediting startups and small businesses and higher flexibility in the short term in this way.
- Minimum Due Diligence Costs
When investing via P2P lending platforms you don´t need to spend the time and money on due diligence and marketing analyses, as all the necessary information about the solvency of the borrower, company’s performance evaluation, market outlook and forecast is done for you and available on the platform.
- Enhanced Yields
For the last years, peer-to-peer lending has shown a higher annualized return than corporate high-yield bonds. At the same time, the volatility for P2P lending portfolios was lower compared to other asset classes.
- Portfolio Diversification
Marketplace lending gives access to multiple business loans and allows to spread funds across them. You can optimize investment strategy by combining loans with different returns/risks in your portfolio.
Why choose TFGcrowd?
We ensure easy online application and fast approval of business accounts for corporate and institutional investors willing to allocate funds via our platform. When registered, you get access to hand-picked European projects in the most fast-growing sectors with above-market interest rates.