Money&Co has completed another £1m of litigation finance, as well as a £400,000 loan for music publishing company Bsides Music.
The litigation finance is intended for tenants to take action against landlords, or homeowners of new builds against their insurance companies, for household disrepair. The platform lends money for surveyor reports to confirm that there are major issues and claims are viable.
Meanwhile, the music loan, which was a five-year facility and offered an eight per cent yield and A plus security, was for Bsides Music to purchase a catalogue of music rights from a songwriter who specialises in Christian music, costing £538,000 including deal costs.
The company put forward £138,000 in cash and Money&Co has made up the balance by raising and providing a £400,000 loan.
The platform said that it is now working on another music loan for £2.2m and is looking for other music loans.
“We did a music loan and litigation finance and neither were affected by Covid-19 because irrespective of the economy and what’s going on, people are still buying music rights and there’s still a need for finance for house disrepairs,” said Nicola Horlick (pictured), chief executive of Money&Co.
“There’s more downloads and streaming during the lockdown. A lot of people at work can’t listen to music whereas at home they can have music in the background whilst working so some music streaming services have benefited during the lockdown.
“Similarly, people are watching video streaming services like Netflix more and music is included in film and TV so that’s a further effect.
“Music is a safe investment and a good way of making money during a recession. It’s uncorrelated with the stock market and being able to put a music loan into an Innovative Finance ISA and use the tax-free wrapper, is another benefit.”
Horlick said that the government’s Help to Buy scheme has led to a rise in litigation claims on new build properties.
She said that the scheme has had a slightly detrimental effect on household standards with many construction firms building new properties that are not up to the full standard.
“In the old days people got legal aid to help and now they can’t, so they turn to the private sector for funding some of those claims,” Horlick said.
“And that continues irrespective of Covid-19.”
The interest in music loans follows the platform announcing in December that it plans to launch an investment product that will provide loans to songwriters and artists secured on their music rights.