Money Management and P2P Lending Could Increase Your Asset

With inflation moving up while interest rates remaining low in the UK — and a number of high-street banks even increasing the possibility of charging business clients to keep deposits —firms’ investment funds may truly be losing worth in real terms.

In the previous year, Grant Thornton detailed that British companies were jointly holding £244bn on deposit. This may seem a senseless situation, but what’s the option?

You could always put in some of your company’s surplus cash in the equity markets, but their unpredictability isn’t for the fainthearted. While previous outcomes aren’t a consistent indicator of future performance, putting resources into the FTSE 100 for any period of up to three years since 1984 has conveyed about a twenty percent possibility of a loss, according to investigation by Lipper. This signifies quite a risk for establishments looking for a steady return!

If you are a flourishing enterprise that is hoping to boost your balance sheet, you presumably feel stuck, with bank funds offering sparse revenues and stock ventures exhibiting over-the-top risks. But there must be a better way.

In the recent years, another approach to conceivably beat the banks has risen. Named as peer-to-peer lending (also known as P2P lending), it gives businesses the chance to be the lending bank themselves.

It includes one of the most seasoned asset classes around: loans secured against the debtor’s bricks and mortar. For companies that are ready to take a level of investment risk, it signifies the opportunity to target higher earnings than the premium they could acquire from bank savings, yet without exposing themselves to the ups and downs of the equity markets.

One of the fastest developing products of this sort is Choice, offered by Octopus Investments, an accomplished investment company that handles more than £6bn of assets. Choice enables customers to focus on an inflation- beating annual gross return of 4% by putting resources into loans held against property.

P2P lending is not for everybody, obviously. A few businesses will be uncomfortable taking risk with their excess cash. In such cases, searching a keen money-saving solution may never have been more essential.

This is where so-called money management services can offer assistance. By helping businesses to discover savings rates that exceed those offered on the high street, they can offer some relief in a generally unforgiving atmosphere for savers.

Working with a developing list of challenger banks, Octopus can offer a savings item that presently gives a financing cost of more than 1%.

Towards the end of the term, Octopus will consequently give customers the best new rate available from the banks it has partnered with, helping them to acquire a top-level rate, year in, year out, without the bother of regularly switching provider themselves again.

Regardless of how much craving for risk you have, it’s about time your company takes control and quits being scorched by its bank rate.

Other p2p lending firms including our own; Stratosphere can offer investors a better rate of interest that will beat traditional banks and other financial institutions and you should carefully do your research before embarking on this sort of investment. A good place to start is to check out the FAQ’s section.

Warning: Capital is at risk