Phil Reynolds, managing director of Newable Lending, explains how investors can Brexit-proof their portfolios by lending to SMEs
IT’S THE question on every investor’s lips: How do you Brexit-proof your portfolio? And Newable Lending – the recently-launched business lending platform – believes that it has the answer.
The peer-to-peer lender is matching up sophisticated retail investors with growth-focused small- and medium-sized enterprises (SMEs) across the UK as part of a wider plan to support the
“For many investors, it’s about Brexit-proofing their portfolio,” says Phil Reynolds, managing director of Newable Lending.
“The businesses that they are currently investing in whether they are equity or debt – how are they going to grow post-Brexit, and do investors think that they have access to ongoing funding?
“We are about more than loan financing, we are supporting the economy by supporting UK SMEs.”
Reynolds predicts that the British manufacturing sector is particularly well placed to take advantage of the country’s currently booming export market, although the platform also focuses on SME borrowers within high-growth sectors such as medtech, life sciences and spacetech.
By investing in these SMEs, Reynolds believes that interest-starved investors can make great returns (estimated at between seven and 10 per cent*), while also supporting British businesses amid a period of economic volatility.
And Newable Lending is not taking any chances when it comes to the businesses’ performance – each borrower is offered 12 hours of free mentorship in the first year of the loan, and every one of the SMEs listed on the platform can take advantage of its extensive network of business experts.
“Having operated as a responsible finance provider for many years, we have a history in ensuring our loan products are there to enable businesses to grow and reach their potential without being hamstrung by obscure, opaque contracts,” adds Reynolds.
However, not every business will make it into the Newable Lending pipeline. Only around 10 per cent of loan applications are eventually approved, as each prospective borrower is expected to meet with the highest standards before it can be listed on the site.
Businesses must be able to provide security in the form of non-residential property or high-value goods, and they must have strong fundamentals and a commitment to future growth. Transparency is also key – as Reynolds says: “For us, it’s all about supporting the businesses, and allowing our investors to be a part of their growth stories.”
Although Newable Lending targets returns of between seven and 10 per cent* for its investors, Reynolds firmly believes that business lending should be about more than simply returns.
“The investors that we attract like the idea that we can offer them a decent return, but we actually offer more than that,” he says.
“We are offering investors the opportunity to earn a return while funding UK SMEs, and be comfortable that they’re investing through a platform whose mission is to enable UK SMEs to flourish.”
Inflation-busting interest rates, transparency and a chance to help British businesses thrive – we believe Newable Lending may have cracked the formula for Brexit-proof investing.
Click here for more information on Newable Lending.
Your capital is at risk if you invest. Investments are illiquid (meaning the inability to sell assets quickly or without substantial loss in value). Newable Lending for Growth Limited is not covered by the Financial Services Compensation Scheme (FSCS).
*Projected return is an estimate of what investors could earn after fees but before bad debt and taxes. Newable Lending for Growth Limited is an Appointed Representative of Resolution Compliance Limited. Resolution Compliance Limited is authorised and regulated by the Financial Conduct Authority (FRN 574048).