Money&Co edges closer to raising £400,000 for music loan
Money&Co’s new loan for music publishing company Bsides Music is already 74 per cent subscribed, having raised more than £300,000 in just five days.
The five-year loan, which offers an eight per cent yield and A plus rated, is to acquire a catalogue of music rights from a songwriter who specialises in Christian music, costing £538,000, including deal costs.
The company is putting forward £138,000 in cash and Money&Co is making up the balance with a £400,000 loan, first added onto the platform on Saturday 28 March.
Nicola Horlick (pictured), chief executive of the platform, said that it has attracted £300,000 from investors and is raising the other £100,000 over the next two weeks.
“It’s quite a difficult time at the moment, with people very anxious,” she said.
“The safest thing you can do is lend to a music company.
“People are staying at home, watching TV and downloading music and every time people watch or listen to something music companies receive money so music sales are rising.”
Money&Co has agreed to pay eight per cent annual gross rate of interest instead of its usual seven per cent for an A plus rated deal, because of the ongoing turmoil caused by the Covid-19 pandemic.
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Each quarter, investors will receive some of their capital and interest back.
As well as music loans, the platform is also focused on liquidation finance and loans for small- and medium-sized enterprises (SMEs).
“People will still need to finance legal claims, that’s another area we will see a high demand of claimants,” Horlick said.
“And we’re also looking to increase opportunities to lend to SMEs because a large number which haven’t previously had to borrow money may now need to so.”
The music loan follows an announcement from Money&Co in December that it plans to launch an investment product that will provide loans to songwriters and artists secured on their music rights.