General

What is crowdfunding?

Crowdfunding is the process of raising money – "funds" - directly from "the crowd". Typically, a large number of people each contribute a small sum of money. This money is loaned to a business, which will always be a limited company or a limited liability partnership.

What is Money&Co.?

We are a crowdfunding platform, regulated and authorised by the UK's leading regulatory body, the Financial Conduct Authority. Money&Co.'s CEO is Nicola Horlick, a well-known investment manager. Money&Co. was founded in 2013 to help British businesses get funds to finance growth, and to provide lenders with a good return on their money.

Can I be a lender?

Yes, providing that you understand the potential risks and benefits of lending to businesses on this site. It's also important that you understand the fees and costs of lending. We also have to check that you are who you say you are – this "Know Your Client" process is required by financial regulators, and is designed to prevent fraud and money laundering.

Can I sign up as a lender if I live on a UK Crown Dependency (e.g. Isle of Man, Channel Islands)?

No. HMRC considers the Channel Islands and the Isle of Man as a non-UK residency, and in these circumstances Money&Co. would be required to withhold tax on behalf of lenders. Money&Co. does not have the facility to effect this process at the moment and as such cannot accept lenders from these Dependencies.

What are the risks of being a lender?

When you lend to a small or medium-sized business, you inevitably take on risk. While we do extensive credit analysis of businesses seeking funds, it is possible that a business may fail. In that case, you may lose all or part of the money you have loaned to the business. Your capital is at risk, as is the income you would have been entitled to. You should invest only money that you are prepared to lose - and of the money you invest in small or medium-sized businesses, it may be prudent to spread your risk by investing across a range of companies operating in different commercial sectors. This is called building a diversified portfolio.

There are other risks associated with making fixed-rate, fixed-term loans. You may find that your money could earn a better rate of return elsewhere because interest rates have risen significantly but your money is locked in (interest-rate risk). If you decide you need to realise the cash lent through Money&Co., you may find that you cannot sell your loan at a price you are happy with (there is no guarantee of finding a buyer). You may have no choice but to hold a loan because the borrower has missed a payment and you are not allowed to sell in the loan market when this happens (liquidity risk).

What do the credit ratings mean?

The credit ratings given for each loan equate to the relative risk of lending to each business (A+ the lowest risk, C+ the highest risk). The indicative interest rate for each credit rating is given below. This represents what we believe is a broadly appropriate interest rate for each category (these represent a gross rate, and do not account for Money&Co.'s fee for lending). We stress this is a set of indicative rates. These indications should not in any way be construed as advice.

A+: 7% A: 8% B+: 9% B: 10% C+: 11%

Can my company be a borrower?

Yes. Here's the practical process: You can apply for loans through us. We will check your company's finances and if we think it is creditworthy, we will give it a risk rating. Our experienced team of credit analysts assesses businesses, backed by a powerful system to help us do it quickly and fairly. For more information take a look at the borrowing section.

What are the risks of being a borrower?

When you borrow money you're staking your reputation, the goodwill of your business, and its main assets. Loans from Money&Co. lenders will always be secured by a debenture over the assets of the business. In some cases, borrowers may be asked to give personal guarantees for loans. You may also want to offer security over land and buildings if it is available, as this may improve your risk rating and make lenders more comfortable lending to you. For more information take a look at the borrowing section.

How is Money&Co. regulated?

We are a loan-based crowdfunding firm, and we are regulated by the UK's leading regulatory body, the Financial Conduct Authority.

Is Money&Co. a member of the UK Crowd Funding Association (UKCFA)?

Yes. We have signed up to the UKCFA's code of conduct, as evidenced by the black UKCFA icon on our website. We are audited by the UKCFA annually to ensure that we adhere to best practices of fairness and transparency in the industry.

Why does membership of the UKCFA make a difference?

It shows that, along with the highest levels of legal and regulatory obligation as required by the FCA, we have voluntarily adopted the best practices in the industry.

Am I protected if Money&Co. goes bust?

Our regulatory and legal obligations, as required by the FCA, and the UKCFA code of practice, all require Money&Co. to keep lenders' money separately. A similar rule applies to the funds held by investee companies. If Money&Co. goes bust you will be able to claim these separately held monies.

Am I protected if the company I lend to goes bust?

As a lender, your money is always at risk. If the business you invested in goes bust you may lose some or all of your investment as the liquidators of the company sell its assets and distribute the cash to you and other creditors of the business. You are a secured creditor because we always take a debenture charge over the borrowing company's assets. A debenture is a way of asserting a claim over assets if things go wrong.

It is likely that there may be other secured creditors who get paid before you, but you are likely to recover more of your capital than general, unsecured creditors. This is why a loan secured by a debenture offers better security than a loan secured on a director's personal guarantee. Holders of such loans rank as unsecured general creditors in the event of the borrower's going into liquidation.

Is crowdfunding the same as the Enterprise Investment Scheme (EIS), or the Seed Enterprise Investment Scheme (SEIS)?

No. Companies seeking to sell stakes in themselves may do so under the terms of the Enterprise investment Scheme, or the Seed Enterprise Investment Scheme. These are tax-incentive schemes designed to persuade investors to become part-owners of businesses seeking funds. Money&Co. offers funding via loans. You will not own a stake in these businesses, and you will not qualify for EIS nor SEIS tax breaks. You will, however, shortly be able to include your Money&Co. loans in an ISA or NISA (new ISA) as announced in the 2014 Budget.

How do I reset my password / log in?

If you try to log in and you have forgotten your username or password, you will have the option of resetting. Just follow the instructions on the page.

How can I contact you?

You can contact us via the site. Go to "Contact Us" and follow the instructions.

Is the Money&Co. website available in large-print, Braille or audio/screen-reader versions?

Most computer operating systems allow you to zoom in (see "View" on your screen) and have a read-text function. We are working on a Braille function.

How secure is the Money&Co. website?

Our IT infrastructure is hosted by a leading global IT hosting company that ensures physical and operational security of our systems and data, and has been certified as ISO 27001/2 compliant annually since 2009. We also ensure all website traffic is secured by 2048-bit encryption. Our Barclays and Barclaycard banking and payment platforms conform to similarly high standards of security protocol. Please remember that the money in your account is held in the same way that a bank would hold money on your behalf and so it is essential that you do not give your username or password to anyone else.

How safe is my personal information?

Your personal information is very safe, but please ensure that you do not give your username or password to anyone else.

Who actually stores my information?

The information that you have given us is held on Money&Co.'s systems, and is not available to anyone else as you are protected by UK Data Protection legislation.

Why does Money&Co. require me to use a display name?

It is no more and no less than an attempt to give you a little privacy. While transparency and openness in financial dealings are of the utmost importance to effect legally binding deals, we are concerned to protect our borrowers and lenders from vulgar abuse and other undesirable side-effects that can come with internet transactions.

What happens if I can't make the site work?

We hope there'll be no glitches at our end. One small problem is that the borrower registration part of the site doesn't support some versions of the Firefox browser. We're working on this now. In the interim, please use another browser - and the problem should go away.

And what if I want to complain?

You should visit "Complaints" and initiate the complaints procedure. We adhere to best practice, and will deal with complaints fairly and promptly.

Lending

Why do I need to read the Lender Terms?

You should read the Lender Terms because they set out the risks inherent in making a loan to a Money&Co. borrower. You need to be fully appraised and aware of these risks before lending.

Can I be a lender?

Yes, providing that you understand the potential risks and benefits of lending to businesses on this site. It's also important that you understand the fees and costs of lending. And we have to check that you are who you say you are – this "Know Your Client" process is required by financial regulators, and is designed to prevent fraud and money laundering.

What are the risks of being a lender?

When you lend to a small or medium-sized business, you inevitably take on risk. While we do extensive credit analysis of businesses seeking funds, it is possible that a business may fail. In that case, you may lose all or part of the money you have loaned to the business. Your capital is at risk, as is the income you would have been entitled to. You should only invest money you are prepared to lose - and of the money you invest in small or medium-sized businesses, it is prudent to spread your risk by investing across a range of companies operating in different commercial sectors. This is called building a diversified portfolio. Money&Co. will seek to recover any bad debts but will not provide any compensation in the event that this is unsuccessful.

There are other risks associated with making fixed-rate, fixed-term loans. You may find that your money could earn a better rate of return elsewhere because interest rates have risen significantly but your money is locked in (known as interest-rate risk). If you decide you need to realise the cash lent through Money&Co., you may find that you cannot sell your loan at a price you are happy with (there is no guarantee of finding a buyer). You may have no choice but to hold a loan because the borrower has missed a payment and you are not allowed to sell in the loan market when this happens (known as liquidity risk).

Am I protected if Money&Co. goes bust?

Our regulatory and legal obligations, as required by the FCA, and the UKCFA code of practice, all require Money&Co. to keep lenders' money separately from our business’s money. If Money&Co. goes bust, you will be able to claim these separately held monies.

Am I protected if the company I lend to goes bust?

As a lender, your money is always at risk. If the business you invested in goes bust you may lose some or all of your investment as the liquidators of the company sell its assets and distribute the cash to you and other creditors of the business. You are a secured creditor because we always take a debenture charge over the borrowing company's assets. A debenture is a way of asserting a claim over assets if things go wrong.It is likely that there may be other secured creditors who get paid before you, but you are likely to recover more of your capital than general, unsecured creditors. This is why a loan secured by a debenture offers better security than a loan secured on a director's personal guarantee. Holders of such loans rank as unsecured general creditors in the event of the borrower's going into liquidation. Again, we must reiterate that lending to private companies is high risk and you may lose some or all of your money.

How do I start lending?

The first step is to look at the businesses that have applied for loans from Money & Co. They will all have had their finances checked and been given a credit rating by our credit analysts. Then you can bid for a loan. You need to say how much you want to lend, and at what rate (although most loans have a fixed rate). The auction will close at a specified time. At this point, if the required amount has been raised, the auction closes, and the business will receive its funding, and begin to make monthly payments.

Can I be a lender AND a borrower at the same time?

Yes, providing you meet the requirements of the lending and the borrowing process.

Are my details visible to the borrower / others if I bid?

Yes. Live bids are visible to the businesses seeking funding, and other would-be lenders. Money&Co. does not do 'blind' auctions.

How do I transfer money to the company I'm lending to?

You don't. You transfer money to your Money&Co. account and it will be held in a our client money account, untouched until the money is ready to be transferred to the company. There is a time-out date, which is usually two weeks from the auction start date. If the borrowing company decides to proceed after a successful auction, it must complete loan documentation. The process will take a little longer if, for example, property is provided as security, when a valuation must be completed. Once this process is finished, we'll transfer the monies to the borrower, and you will begin to earn interest on your money.

As a lender will I have a stake in the company I'm giving money to?

No. Your loan earns you interest and capital repayments over a certain period, subject to the borrower meeting commitments to pay these amounts. You will not own shares in the company.

Is crowdfunding the same as the Enterprise Investment Scheme (EIS), or the Seed Enterprise Investment Scheme (SEIS)?

No. Companies seeking to sell stakes in themselves may do so under the terms of the Enterprise investment Scheme, or the Seed Enterprise Investment Scheme. These are tax-incentive schemes designed to persuade investors to become part-owners of businesses seeking funds. Money&Co. offers funding via loans. You will not own a stake in these businesses, and you will not qualify for EIS nor SEIS tax breaks. However, you will shortly be able to put your Money&Co. loans in an ISA or NISA (new ISA) following the announcement in the 2014 Budget.

What kinds of loans are on offer?

Simple, fixed-rate loans: you bid to provide funds at a certain rate for the duration of the loan term. If your bid is accepted into the final loan sum, that's what you get.

Can I be a lender if I don't live in the UK?

Sorry, but no. There are all sorts of complicated reasons for this. The simplest and most basic one is that money-laundering regulations make it hard for lenders outside the UK to lend via Money&Co.

What does the "loan market" mean?

Parts of loans can be sold in the loan market. We charge 0.25% commission on all sales. There is no guarantee that you will be able to sell your loan, but as the loan book on the site builds, we do expect the loan market to become very active.

Can I sell my live loans at any time?

Yes, if you can find a buyer in the loan market and the loans have a perfect repayment history. If your loans have had one or more repayments missed, you will not be able to sell them.

What does selling at a premium or discount mean?

Selling at a premium means you're getting more money back on the amount of the loan left to be repaid, than you would if you did not sell the right to be repaid to a new lender. Premium sales will typically occur if interest rates go down, and credit becomes cheap. Selling at a discount is the other side of that coin. You sell the right to receive income from a business to a new lender, and you receive less money than the amount left to be repaid on the loan.

What does Money&Co.'s credit rating mean?

When a company comes onto the site and applies for a loan, our credit analysts attribute a credit rating. The credit scale is alphabetical: A+ is the highest, with C+ the lowest. Thus a company with a rating of A+ will, in our risk-assessment team's judgment, be less risky than a borrowing company with a rating of A or B+. We are taking a conservative approach and will only approve loans to companies that are reasonably strong financially. Within this group of companies, however, some will be stronger than others and the credit rating will provide guidance to lenders in terms of what rate they should ask for on their money and how likely or not it is that a company might default on loan repayments. Companies that are weaker financially will be expected to pay a higher rate of interest. This may sound counterintuitive, but that is how credit markets work. It is very important that you spread the money that you are lending across as many companies as possible in order to minimise any losses that might occur as a result of bad debts.

How do I track the progress of my loan?

When you become a lender on the Money&Co. site, you will have your own account. When you access your account page, you will be able to see all the loans that you have made and the status of each one.

Once I've made a loan, I get paid monthly - what do those monthly payments consist of?

Most of our loans are interest only and so you will receive a monthly interest payment and then the whole of the amount that you lent (the capital) at the end of the term of the loan. Occasionally, we might have an amortising loan. If the loan is amortising, your monthly payment consists of capital and interest on that capital. Interest is calculated daily on a reducing capital balance. The borrower makes a fixed repayment each month and, rather like a repayment mortgage, this means that proportionately more of the payment in the early months of the loan will be interest. When you see your interest income from a borrower come in over successive months you should expect this amount to reduce slightly on each occasion. At the same time, you will see slightly more repaid against the outstanding loan value each month. Please note that you will also see the Money&Co.'s 1% fee reduce successively because it is calculated on the same basis, gradually being paid to us as each part of the principal is repaid. We do not take our 1% fee from you upfront so we bear the risk of loan default as you do.

Can I use my loan repayments to pay another party, e.g. a charity or family member?

Loan and interest payments stay in your Money&Co. account until you decide to pay them out to your normal bank account. Once you have paid them into your normal bank account, then you can arrange to make a payment to a charity or family member.

When do I get my capital back?

If the loan is interest only, you will get your capital back at the end of the term of the loan. If it is amortising, then your capital will be returned gradually over the term of the loan as described above.

Can I ask questions of the management of the company I've loaned money to?

Yes, there is a message board where you can ask questions whilst the auction is live. Once the auction has closed, you will not be able to ask questions any more.

What happens if the company I want to lend to doesn't raise all the money it wants?

If the company doesn't raise all the money, then nothing will be lent. The company will have the option to come back onto the site and ask for a smaller amount.

What are the costs of lending through Money&Co.?

We will charge you 1% per annum on all the amounts that you lend. This will be deducted from the interest and capital repayments that you will receive monthly. Thus, the amounts that you will receive will be net of our fees.

How does the 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 look at all the amounts that have been offered and at what rates. It will be able to close the loan immediately if it is happy with the overall rate of interest. However, if it believes that some of the offers are high and it might be able to reduce the overall rate of interest by leaving the auction open, it will be able to do this for up to two weeks from the auction start date.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 agreed rate of interest that you bid once the loan has been made. If your bid is not successful, this will be because the loan was oversubscribed and the money set aside for the auction will be released and will be available to be committed to another auction.that will almost certainly be because another lender has offered to lend at a cheaper rate (the borrowing company naturally wants monies at the best rate it can obtain, and more expensive offers of credit will be squeezed out of popular borrowing propositions). In that case, your money will be released in your Money&Co. account and you will be able to commit to another auction.

How can I reduce my lending risk?

It is vital that you spread the money that you would like to lend across as many companies as possible and companies with different credit ratings. This is called "diversification" and a well-diversified portfolio will provide greater protection against bad debts.

What due diligence does Money&Co. undertake on borrowers?

Money&Co. undertakes credit analysis on borrowers. Borrowers must have at least three years of filed accounts before Money&Co. will even consider approving them. Companies that have seen a sharp decline in profits or which are loss-making will not be approved. Profitability must be steady or rising in order to gain credit approval.

What happens if I fail your credit checks?

We do not perform credit checks on lenders. We are, however, obliged to perform checks to ensure that criminals do not use the site in order to commit fraud or launder money. If you do not pass this check, it is likely that this will be because you are not on the electoral register or you have recently moved your bank account. If you do fail the check, you will receive a message with a telephone number. Please call the number and we will help you through the approval process. We will also waive our fee on the first £1,000 you lend to compensate you for the extra time that it will have taken for you to sign up.

How is the Money&Co. credit rating calculated?

Money&Co. has a sophisticated risk-rating process, which is difficult to describe in a few words. However, the key element is that the companies must have three years' of filed accounts and must be profitable in the last financial year. We are looking for companies that have stable or growing profitability.

Are loans guaranteed or secured?

Loans are not guaranteed to be repaid by Money&Co., and so lenders must understand that their capital is potentially at risk. Loans will often be secured on the assets of the company or may carry a personal guarantee from the owner of the business. This will provide some protection if the company defaults on loan repayments.

What are the income tax implications of lending through Money&Co.?

The interest you receive is income, and income tax is payable on that interest. You will be able to see an annual statement of income earned and tax paid to the UK tax authorities online when you log into your Money&Co. account. The capital you advance will simply be returned to you by the company you have lent to. This will not be a capital gain and will not be subject to Capital Gains Tax.

What happens if a business I lend to misses a repayment?

You will receive an email alert. The Money&Co. credit-control team will chase payment for you in this (we very much expect) unlikely event. There is no need for you to contact directly the business you have loaned money to.

Does Money&Co, report any defaults on loans to credit reference agencies?

Yes, we share information on defaulting businesses with recognized credit agencies. But this has no effect on the credit rating of you, the lender.

Can a business repay a loan early?

Yes, and you as a lender will not receive any further interest once the loan has been repaid.

Will I receive regular updates from Money&Co. on my existing loans and/or live bids?

You will not receive updates on how the company you have lent money to is doing. One of the advantages for businesses borrowing in this way is that they do not have to report on their performance: they just have to make repayments of capital and interest. We will provide you with up-to-date information about what you have lent through Money&Co. Simply log in to your Money&Co. account, and a timely summary, consisting of each and every loan you've made, will be readily available. If a business is in default and has missed a number of interest payments, we will provide updates to all those who lent to it.

Can I be a borrower?

Yes. Here's the practical process: You can apply for loans through us. We will check your company's finances and if we think it is creditworthy, we will give it a risk rating. Our experienced team of credit analysts assesses businesses, backed by a powerful system to help us do it quickly and fairly.

Can I be a lender AND a borrower at the same time?

Yes - providing you meet the requirements of the lending and the borrowing process.

Is Money&Co. a member of the UK Crowd Funding Association (UKCFA)?

Yes. We have signed up to the UKCFA's code of conduct, as evidenced by the black UKCFA icon on our website. We are audited by the UKCFA annually to ensure that we adhere to best practices of fairness and transparency in the industry.

Why does membership of the UKCFA make a difference?

It shows that, along with the highest levels of legal and regulatory obligation as required by the Financial Conduct Authority, we have voluntarily adopted the best practices in the industry.

What does Money&Co.'s credit rating mean?

When a company comes onto the site and applies for a loan, our credit analysts attribute a credit rating. The credit scale is alphabetical: A+ is the highest, with C+ the lowest. Thus a company with a rating of A+ will, in our credit-assessment team's judgment, be less risky than a borrowing company with a rating of A or B+. We are taking a conservative approach and will only approve loans to companies that are reasonably strong financially. Within this group of companies, however, some will be stronger than others and the credit rating will provide guidance to lenders in terms of what rate they should ask for on their money and how likely or not it is that a company might default on its loan payments. Companies that are weaker financially will be expected to pay a higher rate of interest, which may seem counterintuitive, but that is how credit markets work. It is very important that you spread the money that you are lending across as many companies as possible in order to minimise any losses that might occur as a result of bad debts.

What due diligence does Money&Co. undertake on borrowers?

Money&Co. undertakes credit analysis on borrowers. Borrowers must have at least three years of filed accounts before Money&Co. will even consider approving them. Companies that have seen a sharp decline in profits or which are loss-making will not be approved. Profitability must be steady or rising in order to gain credit approval.

How is the Money&Co. credit rating calculated?

Money&Co. has a sophisticated, bespoke credit assessment process that analyses both filed accounts and management information, along with other qualitative data (such as Industry information) to derive a credit rating. This process focuses a number of key metrics including Cash Flow generation, the ability to repay debt, liquidity and earnings stability. Money&Co. always insists on a debenture over the company, to ensure any losses are minimised. This focus on quality means that whilst our gross indicative interest rates by credit rating may be somewhat lower than other crowdfunders, our net return (after losses) should be lower.

What are the risks of being a borrower?

When you borrow money you're staking your reputation, the goodwill of your business, and its main assets. Loans from Money&Co. lenders will always be secured by a debenture over the assets of the business. In some cases, borrowers may also be asked to give personal guarantees for loans. You may also want to offer security, if it is available, over land and buildings. This may improve your risk rating, make lenders more comfortable lending to you, and lower your overall interest rate.

As a borrower, what will raising money cost?

There are two parts to the cost of borrowing – the transaction cost, which is fixed, and the cost of the loan, which isn't. The transaction cost is composed of a £50 application fee, and a £100 listing fee (both excluding VAT), once all the details of the application have been processed. The listing means that your business's details will go into an auction, and Money&Co. lenders will offer money at the interest rates they decide on. We will publish a range of interest rates to represent what we expect each risk level to be priced at, but lenders are free to make offers to lend at any rate they wish. As a borrower, you are not obliged to accept any offers. As the closing point of the auction nears, bids for attractive business propositions will typically decrease, and the most expensive bids will be frozen out of the auction. If your loan completes successfully, there may be the cost of getting a valuation over any land and buildings if you have offered these as security. There will be an arrangement fee, which is a percentage of the loan raised (ranging from 1.5% - 5% depending on the size and length of the loan), and you may also have to pay legal costs related to completing the loan documentation, depending on the size of the loan.

Does my company need to be in the UK or UK based to be a borrower?

Fraud and money-laundering prevention regulations mean that we restrict our offering to UK businesses.

How do I, as a borrower, make a pitch?

You have the opportunity to set out the attractions of your business proposition in writing and – if you apply for a more expensive Premium Listing - on video. Once you've been through the process of stating how much you want, how you plan to apply the money to the business, etc, you will have the opportunity to write a business profile, and to make a video, which we'll host on the Money&Co. website. The video pitch can be an especially effective tool - an opportunity for potential lenders to see who you are, and for you to talk about your business, and explain what will happen to the monies from the loan.

Is there a prescribed format for the business information I have to supply?

There are certain things you need to explain, so as to engage with and capture the interest of potential lenders. You will need to explain – vividly, but briefly – what your business is all about (Micro-brewery? Plumber? IT consulting?), who your customers are, who your suppliers are, the history of your business, who your main competitors are, and how your business has performed financially over the past few years.

How precise, as a borrower, do I have to be about my company's prospects for growth?

You must be absolutely truthful – and extremely careful not to treat future prospects of contracts and growth as present fact. It is unhelpful and potentially misleading to make general, qualitative statements about your business's competence and standing in a certain area. Your company may be the "best" wicker-basket manufacturers in Berkshire, but it would be potentially misleading to make such a statement (even though this would be difficult to prove). If a lender were to loan money in reliance on such a statement, you might find yourself liable to a civil action if your business were to run into difficulties and you were to default on payments. Even something more easily proved – eg, your business is the "biggest" or "fastest-growing" in its sector – needs to be stated in qualified terms. If you have a strong growth record, state it. If you believe you are one of the leaders in your field, state that – but do point out that this is your reasonable belief, based on facts such as published accounts, testimonials, client base, etc.

When Money&Co. makes enquiries of due diligence to ensure the soundness of my company, what are my obligations?

Again, you must be absolutely truthful, and disclose all relevant facts pertaining to the questions asked by Money&Co.'s credit-analysis team.

What are the most commonly used ways of promoting my loan offer?

The Money&Co. website is central to promoting your loan offer. You might do well to set up a suite of online media channels – Twitter, Facebook, LinkedIn, Pinterest, Google+, FourSquare, etc, to cross-promote your business.

How long will it take to raise a loan through Money&Co.?

Once you've been through the application process, and set up a business profile, complete with video (if you go for the Premium Listing option), your offer will be listed in the auction. The application and listing process should take no more than three working days. Auction periods typically last for up to 14 days, unless you decide to complete it early in the event that the total amount of the loan has been raised and you are happy with the average rate of interest your business will need to pay. After the auction period is over, there is a four-week period during which loan documentation needs to be completed. There may also be a requirement to have a valuation done over any land and buildings, if offered as security. The time taken will therefore be a little longer if your loan requires security (in most cases, 'security' means a mortgage on a piece of real estate).

What is a Premium Listing - and how does it work?

Premium Listings offer more exposure on the Money&Co. website – the powerful tool of a short video showcasing you and your business. Premium Listings cost £750 (plus VAT) - an extra £750 on top of the standard £100 listing cost. This is to cover the cost of having the video made. However, only a limited amount of information about your loan application, excluding your company name, will be publicly available. That way new lenders may be attracted to your loans but your customers, staff, suppliers and your bank need not be aware you are looking to raise loan capital.

Can my company be anonymous when borrowing?

No. Fraud and money-laundering regulations require transparency and clarity in all dealings. Nevertheless, only a limited amount of information about your loan application, excluding your company name, will be publicly available. That way new lenders may be attracted to your loans but your customers, staff, suppliers and your bank need not be aware you are looking to raise loan capital.

For what purposes can I borrow money through Money&Co?

You need to demonstrate to Money&Co. and its team of credit analysts and senior executives that the money you're seeking to raise will be used to promote and strengthen your business, to help it grow, or to refinance existing debt. Money cannot be raised to pay shareholders or directors.

What happens if my loan is not completely filled – i.e., the lenders don't come up with all the funds I am seeking?

You will only receive funds from Money&Co. if your loan is fully funded. If it is only partially funded, you can resubmit your application for a lower amount. Please note that this will incur a new application and listing fee.

How much can I borrow through Money&Co.?

The maximum is £3 million. In this case, Money&Co. will require you to grant a mortgage secured on a piece of real estate as security. For loans not secured on a property the maximum is £2 million. The minimum amount that can be borrowed is £50,000.

Can I borrow more than once through Money&Co.?

Yes, you can borrow more than once through Money&Co., but it is not necessarily the case that a second loan will be approved. Our credit analysts will look at the position at the time of the application and make a decision based on all the information available to them at that time.

Can my company have more than one auction at a time?

No. Each company can only have one auction at any one time.

Can my application form be amended once an auction is live?

It is not our intention to amend the information provided during a live auction. However, if there is something that has dramatically changed the circumstances of the company whilst the auction is ongoing, you must inform us immediately. For example, if you are a manufacturing business and a fire has destroyed your premises, we need to know.

Can I lend to my own business?

There is no reason why individuals cannot make a loan application on behalf of their business and also be lenders, including lending to their own business.

Can I repay my loan early?

If the company no longer needs the loan and you are able to repay all that is outstanding, then you can do so without any penalty. You cannot, however, only repay part of all that is outstanding, inlcuding any interest accruing to the repayment date.

Can I track the progress of my loan auction?

You can look at the auction page for your company and see how the auction is progressing at any time.

If my loan auction is successful am I obliged to accept the monies?

No. If the rate of interest set by the borrowers is much higher than you were expecting or you decide you no longer require the loan for any other reason, then you have the right to withdraw.

What is the loan documentation/completion process once the auction is successful?

Once the auction process is complete, we will send you our standard documentation. You will then be required to sign this and return it to Money&Co.

Is there a timeframe in which I have to complete a loan after a successful auction?

When the auction is closed, we will send you our standard documentation for signature. If we are securing the loan against an asset that needs to be valued, then we will arrange for a valuation. As long as this is satisfactory and the asset has a value close to the initial estimate, the loan monies will be released. In general, we would expect the loan monies to be released within two weeks of the auction closing. For secured loans the process may take a little longer, as the mortgage procedure dictates. We have set a maximum period of six weeks from the start of the auction. This is to protect lenders who will not have had access to their money during this time.

What are my obligations to the lenders once I have borrowed the monies?

Your obligation is to make the monthly repayments on time. This is paramount. We may also have other conditions, e.g. not paying more than 75% of net profit as dividends. We will advise you if this is the case during the application process.

How do I reset my password / log in?

If you try to log in and you have forgotten your username or password, you will have the option of resetting. Just follow the instructions on the page.

What happens if I can't make the site work?

We hope there'll be no glitches at our end. One small problem is that the borrower registration part of the site doesn't support some versions of the Firefox browser. We're working on this now. In the interim, please use another browser - and the problem should go away.

How can I contact you?

You can contact us via the site. Go to 'Contact Us' and follow the instructions.

How do I transfer money to repay the lender?

You will be required to set up a standing order from your bank account to make monthly payments. These payments will be the same amount every month for the term of the loan and include a capital payment and an interest payment combined.

How do I respond to any questions potential lenders are asking?

You will be able to see the questions coming through from potential lenders on your business's profile page. Please answer these as promptly as possible.

Risk

What are the risks of being a lender?

When you lend to a small or medium-sized business, you inevitably take on risk. While we make diligent enquiries of the
businesses seeking funds, it is possible that a business may fail. In that case you may lose all or part of the money
you have loaned to the business.
You should only invest money that you are prepared to lose and you should spread
your risk by investing across a range of companies operating in different commercial sectors. This is called building a
diversified portfolio.

What are the risks of being a borrower?

When you borrow money you're staking your reputation, the goodwill of your business, and its main assets. Loans from
Money&Co. lenders will always be secured by a debenture over the assets of the business. In some cases, the directors of
the borrower may also be asked to give personal guarantees for loans. You may also want to offer security, if it is
available, over land and buildings or other business assets. This may improve your credit rating and make lenders more
comfortable lending to you, but these assets will be at risk if you are unable to service your loan or make capital
repayments.

What is the estimated default rate for borrowing companies?

Borrowing companies that pass the Money&Co. credit-rating test are given one of five credit ratings (A+, A, B+, B, C+).
A+ is the "best" rating, for companies deemed the most creditworthy. Below we set out the estimated rate of default,
according to credit rating. The riskiest category projects capital losses equivalent to the failure of three companies
in 200, and the A+ category projects the equivalent of the failure of just one company in 200.You should be aware that
if a company fails your capital is at risk.

You should be aware that if a company fails your capital is at risk.

| Credit Rating | Estimated Bad Debt Rate |
|---------------|-------------------------|
| A+ | 0.5% |
| A | 0.75% |
| B+ | 1.0% |
| B | 1.25% |
| C+ | 1.5% |

What legal rights and protections do I have as a lender?

There are no special protections for lenders. Lending to businesses does not have the rights, privileges and protections
that apply to consumer-finance transactions. Although currently all of the loans offered by Money&Co. will fall outside
the protection of the Financial Conduct Authority (FCA)'s Financial Services Compensation Scheme, we are regulated by
the FCA, and treat lenders fairly as we are required to do under the FCA rules.

Why do I need to read the Lender Terms?

You should read the Lender Terms because they set out the risks inherent in making a loan to a Money&Co. borrower. You
need to be fully appraised and aware of these risks before lending.

How is Money&Co. regulated?

We are a crowdfunding/lending platform and are regulated and licensed by the UK's leading regulatory body, the Financial
Conduct Authority, as the operator of the platform.

Is Money&Co. a member of the UK Crowd Funding Association (UKCFA)?

Yes. We have signed up to the UKCFA's code of conduct, as evidenced by the black UKCFA icon on our website. We are
audited by the UKCFA annually to ensure that we adhere to best practices of fairness and transparency in the industry.

Why does membership of the UKCFA make a difference?

It shows that, along with the highest levels of legal and regulatory obligation as required by the FCA, we have
voluntarily adopted the best practices in the industry.

Am I protected if Money&Co. goes bust?

Our regulatory and legal obligations, as required by the FCA, and the UKFCA code of practice, all require Money&Co. to
keep lenders' money separate from the company's money. If Money&Co. goes bust, you will be able to claim these
separately held monies from the administrator.

Am I protected if a company I lent to goes bust?

As a lender, your money is always at risk. If the business you lent to goes bust, you may lose some or all of your
investment as the liquidators of the company sell its assets and distribute the cash to you and other creditors of the
business. You will be a secured creditor because we always take a debenture charge over the borrowing company's assets.
A debenture is a way of asserting a claim over assets if things go wrong. However, any amounts owed to HMRC must be paid
first and then there may be other secured creditors who get paid before you, but you are likely to recover more of your
capital than general, unsecured creditors. This is why a loan secured by a debenture offers better security than a loan
secured on a director's personal guarantee. Holders of such loans rank as unsecured general creditors in the event of
the borrower going into liquidation.

What does Money&Co.'s credit rating mean?

When a company comes onto the site and applies for a loan, our credit analysts attribute a credit rating. The credit
scale is alphabetical: A+ is the highest, with C+ the lowest. Thus a company with a rating of A+ will, in our
credit-assessment team's judgment, be less risky than a borrowing company with a rating of B+. We are taking a
conservative approach and will only approve loans to companies that are reasonably strong financially. Within this group
of companies, however, some will be stronger than others and the credit rating will provide guidance to lenders in terms
of what rate they should ask for on their money and how likely or not it is that a company might default on loan
repayments. Companies that are weaker financially will be expected to pay a higher rate of interest. This may sound
counter-intuitive, but that is how credit markets work. It is very important that you spread the money that you are
lending across as many companies as possible in order to minimise any losses that might occur as a result of bad debts.

How is the Money&Co. credit rating calculated?

Money&Co. has a sophisticated credit-rating process, which is difficult to describe in a few words. However, the key
element is that the companies must have three years of filed accounts and must be profitable in the last financial year.
We are looking for companies that have stable or growing profitability.

How can I reduce my lending risk?

It is vital that you spread the money that you would like to lend across as many companies as possible and companies
with a range of different credit ratings. This is called "diversification" and a well-diversified portfolio will provide
greater protection against bad debts.

What happens if a business I lend to misses a repayment?

You will receive an email alert. The Money&Co. credit-control team will chase payment for you in this (we very much
expect) unlikely event. There is no need for you to contact directly the business you've loaned money to.

Does Money&Co, report any defaults on loans to credit reference agencies?

Yes, we share information on defaulting businesses with recognised credit agencies. But this has no effect on the credit
rating of you, the lender.

How secure is the Money&Co. website?

Our IT infrastructure is hosted by a leading global IT hosting company that ensures physical and operational security of
our systems and data, and has been certified as ISO 27001/2 compliant annually since 2009. We also ensure all website
traffic is secured by 2048-bit encryption. Our Barclays and Barclaycard banking and payment platforms conform to
similarly high standards of security protocol. Please remember that the money in your account is held in the same way
that a bank would hold money on your behalf and so it is essential that you do not give your username or password to
anyone else.

How safe is my personal information?

Your personal information is very safe, but please ensure that you do not give your username or password to anyone else.

Who actually stores my information?

The information that you have given us is held on Money&Co. and is not available to anyone else as you are protected by
the Data Protection legislation.

What is an ISA?

ISA stands for Individual Savings Account. Investments within an ISA account do not attract tax. This means that any income generated by the investments will be tax-free and if you sell an investment within the account and make a capital gain, no tax will be payable, even if you have already used your capital gains tax allowance for that tax year.

What is an IFISA?

IFISA stands for Innovative Finance Individual Savings Account. The IFISA was introduced on 6 April 2016. Previously, there were two types of ISA: the Cash ISA and the Stocks and shares ISA. The IFISA allows savers to hold peer-to-peer (P2P) loans (including loans made to businesses) and cash in an ISA wrapper. This means that any interest earned on your loan portfolio will be tax-free.

Who can invest in an IFISA?

Anyone who is over 18 years-old, and who is resident in the UK (which excludes the Channel Islands and the Isle of Man) for tax purposes. If you are working overseas, but work for the Crown or are on active service, you will be treated as being resident. If you are the spouse or civil partner of someone who is working for the Crown overseas, you will also be treated as being resident.

How can I apply for an IFISA?

You can fill in the form online or you can print the form and fill it in by hand. You can also apply by telephone. All IFISA forms must be signed. So if you apply online or by telephone, we will send you the printed form, which you must sign and return to us within 30 calendar days of making the application. If you spot any mistakes on the form, please correct them and initial where you have made the change. Your form should be posted back to us using the address FREEPOST Money&Co.,

What happens if I decide to go and live overseas permanently and I am not working for the Crown?

You can keep the investments that you have already made in your IFISA account, but you will not be able to make further subscriptions.

You ask for my National Insurance number on the application form. What happens if I don???t have one, or if I have a temporary one?

If you don???t have a National Insurance number or if you have one in an old format or a temporary one, you will still be able to invest in an IFISA, but we need to establish that you definitely do not have a National Insurance number in the modern format.

What happens if I am resident in a care home or am a traveller?

Those living in a care home or who have no permanent address because they are travellers can invest in an IFISA.

What happens if I move house?

You must inform Money&Co. of your new address as soon as possible.

What happens if I change my name?

You must inform Money&Co. of your new name as soon as possible.

Can a third party apply for an IFISA on my behalf?

Yes, but you must sign the application form yourself.

What happens if I am not able to sign my IFISA application form?

You must sign your own application form. If you are incapable of signing the application form and a valid Power of Attorney is held by someone else, then that person will be able to sign the form on your behalf. If your Financial Adviser is making an application on your behalf, he/she will not be able to sign the application form. You must do this yourself.

What is the minimum investment in an IFISA?

Money&Co. has a minimum investment level of ??1,000 for the IFISA.

What happens if I change my mind after my IFISA application has been accepted?

If you change your mind and your IFISA subscription is still in cash, you can cancel or transfer your IFISA. If you have already bought a loan or loans in your IFISA account, these will have to be sold before you can cancel or transfer your IFISA account.

Can I hold my IFISA jointly with someone else - such as my spouse or civil partner?

No. Your IFISA must be held in your own name only. Your spouse or civil partner can have his or her own IFISA account, but the money subscribed must be the individual???s own money.

What other restrictions apply to the IFISA?

Under the ISA regulations, you can only buy one IFISA in each tax year. So if you apply for a Money&Co. IFISA for the current tax year, you cannot buy additional IFISAs through any other platform. You are allowed to buy a Cash ISA and/or a Stocks and Shares ISA during the same tax year, but you must not exceed your overall ISA allowance.

What happens if I exceed my annual ISA allowance by mistake?

All ISA managers are required to report the subscriptions they have received during the tax year to HMRC. If it becomes apparent that you have exceeded your ISA allowance for the previous tax year, the HMRC will require the situation to be rectified by the cancelling of the last ISA that you bought. HMRC will give guidance to the ISA manager involved and will also inform you of what needs to be done.

What will happen to the interest from the loans held in my IFISA?

You have the choice between reinvesting the interest in new loans within your IFISA account or paying the interest to your clearing bank account monthly. No tax will be payable on the interest from your loan portfolio.

What level of income can I expect from my IFISA?

Money&Co. will be offering three-year, fixed-term loans to include in your IFISA. The first one is expected, at the time of writing, to have a gross yield of 8 per cent. Money&Co. takes a fee of 1 per cent per annum. This means that the net yield that you will receive will be 7 per cent per annum. If you invest ??1,000, you will get ??70 per annum of interest and over the three-year period of the loan, you will get ??210. No tax will be payable, and you can choose to have the interest paid to your clearing bank account each month.

Will I earn interest on cash held in my IFISA account?

No interest is payable on cash held in your IFISA account.

What happens if something goes wrong with a loan in my IFISA account?

If something goes wrong with the underlying company that has taken the loan, Money&Co. will move to enforce the security held. If the security is property, the property will be sold and the proceeds will be paid to Lenders, which may include IFISA holders. However, although Money&Co. always takes some security from Borrowers, there is still a risk that you might lose some of your capital if we are not able to achieve a good price when the asset is sold. If you do lose some of your capital, you will not be able to offset this loss against any gains outside your IFISA portfolio.

What happens when a loan in my portfolio matures?

When a loan matures, the capital will be repaid and this will become cash in your IFISA account. Money&Co. will then inform you of new loan offerings so that you can give an instruction to reinvest the cash.

What happens if an IFISA holder dies?

If an IFISA holder dies, Money&Co. is required by HMRC to remove the ISA wrapper from the date of death. This means that any interest earned after the date of death will be subject to tax. However, it may be that the surviving spouse or civil partner will be entitled to make an Additional Permitted Subscription. Money&Co. accepts Additional Permitted Subscriptions, even if the person making that subscription does not already have a Money&Co. IFISA account.

What will happen to my IFISA if I am declared bankrupt?

If you are declared bankrupt, a Trustee will be appointed and he/she will have the power to direct that your IFISA account be closed and the proceeds of sale of your loans be paid out.

Does Money&Co. offer flexible IFISAs?

All Money&Co. IFISAs are flexible. This means that we will treat any new subscription for the current tax year as being net of any income paid out from your existing loan portfolio held in your IFISA. If you are applying for a new IFISA this will not be relevant to you initially, but will apply in future tax years.

Can I transfer an existing ISA to Money&Co. ?

Yes. Fill in our IFISA application form and tick the box telling us that you are looking to transfer from another ISA manager.

Can I transfer my Money&Co. IFISA to another ISA manager?

Yes. The new ISA manager will contact us and we will arrange to sell the loans in your IFISA account. This may take some time and will depend on demand in the Loan Market.

Can I close my IFISA account?

Yes, you can close your IFISA account at any time. We can send any cash in your account to your clearing bank and then sell your loans in the Loan Market. However, it may take some time to sell your loans. If you close your IFISA account, you will lose the tax benefits for the previous tax years that you made subscriptions. You will be able to make future subscriptions to a Money&Co. IFISA, but you will have to open a new account and those subscriptions will count as being for the tax year in which they are made.

Will there be any tax consequences for my IFISA if Money&Co. goes into administration?

No. Your ISA wrapper will be unaffected if Money&Co. goes into administration. Any cash balance held in your IFISA will be held in our client money account, which will also be unaffected if Money&Co. goes out of business for any other reason

What happens if I want to take a loan out of my IFISA?

If you wish to transfer a loan from your IFISA to an ordinary Money&Co. account, you can call the customer service line (020 3143 4000) and we will assist you. We will be able to set up a non-IFISA account if you don???t already have one and we will be able to transfer the loan on the same day. However, please note that a loan transferred from an IFISA to a non-IFISA account will no longer attract tax relief on interest.

Will my IFISA be covered by the Financial Services Compensation Scheme?

No. P2P loans are specifically excluded from the Financial Services Compensation Scheme currently.