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  • Farmer cultivates healthy annual return with BondMason : A case study from one of BondMason's many business clients Feb 11, 2019

    Farmer cultivates healthy annual return with BondMason

    A case study from one of BondMason's many business clients

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    Farmer cultivates healthy annual return with BondMason

    Wiltshire farmer Tim Daw has been harvesting a healthy return from his business’s savings by investing his farm’s money with BondMason and watching it grow.

    Tim runs Cannings Cross Farm which is a small arable enterprise with wheat, oilseed rape and biomass rye being the main crops.

    His farm is in a part of the country with a strong Neolithic history, and with this in mind, Tim established The Long Barrow At All Cannings, which is a recreated Neolithic long barrow used as a columbarium (a place for cremated remains to be kept), set in a place where visitors can enjoy its beauty and solitude. (www.thelongbarrow.com).

    Tim says: “I sold some land two years ago to provide future funds for the farm and my children. The sale generated a large tax bill that I would have to pay to HMRC down the line, so I wanted somewhere I could keep this money for the 12 to18 months before it became payable.

    “Ultimately, I invested much of it through the BondMason platform and during the first 18 months that my funds were there, the returns I earned effectively reduced my tax bill by over 10%.”

    Prior to investing with BondMason, Tim did thorough research into how to get the best return from the capital that he had generated from his business. He says “I looked at bank deposit accounts but they were barely paying any interest. A friend then suggested that I look into the peer-to-peer lending sector, as this could generate a better income while having an acceptable balance of risk and return.

    “I had a number of criteria around access to my funds at the right time, their security, and also I did not want to invest in land.

    “I did plenty of research and, as it was a new area for me, I split the cash from the land sale across several firms to further diversify my risk. I was particularly keen on one of them being BondMason as its approach is to ensure its clients are diversified across many loans, adding an extra layer of security for me.

    “I am now all settled up with HMRC and have continued to keep the business’s money with BondMason. In fact, when the time came to pay HMRC, I took as little as possible out, as I was much happier with the performance of my investment with BondMason, as well as having the security of investing in asset-backed lending.

    “Prior to investing, my calls with BondMason were very reassuring and they clearly answered my questions in an open and knowledgeable manner. Their reporting is also very good and, importantly, the process was very simple when it came to drawing down the funds when I needed them.

    “I have quite a bit of my original money still remaining with BondMason and I am happy for it to sit there in the background. I am letting them just get on with it and grow the money as they have done since I became a client.

    "I have to say that when I spoke to my accountant about investing in the peer-to-peer sector he said he thought it was quite risky and a bit ‘way out’. My research showed otherwise. While that may be true of some areas, I found if you look carefully you can find low levels of risk combined with returns that are very acceptable.

    “The BondMason approach is very suitable for a small business such as mine, particularly as the returns on bank deposit accounts, the main alternative, have been unexciting for such a long while.”

    Get in touch with the BondMason team today to learn more: [email protected] or 01582 802000


    Nothing in this article should be construed as advice, your capital is at risk.
  • Investing your company's surplus cash Feb 11, 2019

    Investing your company’s surplus cash

    If you want to put your idle cash to work, BondMason can help.
    How your business cash could work harder

    If you’re a business owner of a small limited company, or self-employed, the chances are you don’t have time or resources to employ a Financial Director. Here's how we can help you get your surplus cash to work harder.

    Inflation-beating returns
    We make it easy for investors to target attractive returns from secured lending. Since 2015, our clients have achieved average net returns of 6% p.a1, investing over £40M across 6,000 curated loan investments, with 85% secured against UK property.

    Managing risk
    Achieving attractive returns from lending is about minimising the downside risks. We conduct rigorous due diligence to select our lending partners and assess every loan opportunity to make it easy for clients to build a well-diversified portfolio.

    Accessing your funds
    With no tie-in, you can withdraw your funds when you choose and we pride ourselves on enabling you to access your money when you want it. We aim to fully liquidate funds within 24 to 48 hours*, which we have been able to do in 100% of cases to date.

    Get started
    Learn more
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    Improving the financial health of your business.
    Investing surplus cash can significantly increase the overall wealth of your business.
    When your business cash is sitting on the sidelines, you are not making the most of your investment opportunities.


    Imagine if you could generate a modest return that could buy you an extra 1-2 months runway. Or like several of our clients, reduce your tax bill.

    Depending on how much you have to invest, the return you make over 12 months could enable you to take some time off.

    £100k invested with returns of 6% p.a could equate to £6,000 in 12 months. That equates to 12 days extra holiday a year (at £500/day).

    INVESTMENT OPTIONS
    Putting your company’s cash to work

    Holding on to cash, without earning interest on it, is like throwing it away. Here are a few options for investing your extra cash. You'll need to consider your current business needs and goals for the future to determine which option(s) are suitable for your company.

    Commercial Property
    Of the 4,000 people surveyed by YouGov, 27% said they believed property was the best way to outpace inflation. Investing in commercial property, such as offices, supermarkets and warehouses, can grow your money through rental income and growth in the value of the property you own, but can be illiquid - meaning it can be hard to sell if you need to access your money.

    Buy-to-let
    A company can purchase flats and houses for investment purposes and rent them out.

    Interest rates are usually higher for limited companies compared to personal mortgages and lending criteria are tighter. But if you can find good opportunities then it’s worth looking into property investment.

    Lending against property
    With the advent of new tax and mortgage regulations, accessing returns from buy-to-let and direct property investing is harder than it once was. Lending provides an opportunity to earn a passive income from property, with attractive risk-adjusted returns. BondMason has achieved a stable and steady investment track record from aconservative loan portfolio - with an average LTV of 56% - secured against UK property.

    Company Pension Contributions
    Your company can make pension contributions directly into your pension fund whether it be a stakeholder SSAS scheme or a SIPP. A SSAS is a small occupational pension scheme, normally set up by the directors of a business that want more control over the investment decisions relating to their pensions. Either way, the money going into the pension is not taxed by corporation tax.

    Bonds
    If you have no immediate plans to use the company’s cash you could invest it into fixed term bonds. Remember that once deposited the money is tied up for the whole period and there are normally penalties for wanting to withdraw the funds before the settlement date. The ISA eligible Absolute Return Bonds enable investors to target inflation-beating returns, tax free.

    Don't lose out
    The decision of what to invest in, requires time in research. The danger is that if you remain indecisive and hold onto too much cash, you could lose out on missed opportunities. Property lending is seen by many investors as the middle ground between the volatility of stock markets and the security of cash.

    INVESTING SURPLUS BUSINESS CASH
    Property lending with BondMason


    BondMason has achieved a stable and steady investment track record from a conservative loan portfolio - with an average LTV of 56% - secured against UK property.

    Investing in property lending
    All of our loans are secured - with the significant majority secured against UK residential and commercial property.
    We focus on refurbishment finance with loans used to fund small-scale property refurbishment, or developments. Projects fall within the scope of permitted development, or have planning permission.

    Conservative loan-to-value. The average loan-to-value of our property loans is 56%. Valuations are independent, typically conducted by professional surveyors adhering to red-book processes.

    The BondMason Investment team reviews every loan, with only 1-in-4 loans being approved by us.

    We conduct additional due diligence and verify valuations with our own research and assessments.

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    A guide to investing your company's surplus cash
    If you want to put your company's cash to work, this guide gives an overview of how you can improve the overall wealth of your business, by investing your company’s surplus cash.

    The options covered in this guide include

    Commercial property, Buy-to-let, Company pension contributions, Bonds, Lending against property

    Download your guide
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    https://www.bondmason.com/investing-surplus-company-cash
  • Surplus Business Cash to Invest? Feb 11, 2019

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    We all know a few people who own small limited companies or are self-employed. It’s a tricky business getting a fledgling company to reach the stage of being profitable. Generating too much cash may seem like a nice problem to have. But you just need to consider the effect of inflation, compounded with lost opportunities to see why sitting on cash is not a good business strategy.

    Cash sitting in your business account?
    There could be several reasons why your business is generating surplus cash. Whether it’s because your company is more profitable at specific times of the year, or you’re just setting up and have received capital through a fundraising round. Or perhaps you’ve sold an asset and have cash waiting to re-invest elsewhere.

    After taking some as income plus dividends up to a point that is tax-efficient, usually around £40,000, it’s difficult to use the business cash remains without paying a huge tax bill. As a result, the company profits stack up and a large amount of cash is left sitting in the business account.

    Whichever scenario describes you, having too much idle cash could result in missed opportunities.

    Declining purchasing power of cash
    Since the financial crisis, cash has returned 1% or less a year, consistently below the prevailing level of inflation.

    This situation is expected to continue, with the Brexit negotiations keeping UK interest rates low and a weakened pound keeping inflation high. As a result, the purchasing power of cash is actually going backwards.

    To put this into perspective, at the current rate of inflation, £10,000 held in cash today would be worth £7,500 in 10 years' time. Similarly, £100,000 will be worth £75,000. A £25,000 loss.

    Many business owners don’t have time to look at the options, so instead they either do nothing or just take a big tax hit by withdrawing their profits. There is a better way.

    What are the options?
    Here are a few options for investing your extra cash. You'll need to consider your current business needs and goals for the future to determine which option(s) are suitable for your company.

    Commercial Property
    Of the 4,000 people surveyed by YouGov, 27% said they believed property was the best way to outpace inflation. Investing in commercial property, such as offices, supermarkets and warehouses, can grow your money through rental income and growth in the value of the property you own, but this option is often illiquid - meaning it can be hard to sell if you need to access your money.

    Buy-to-let
    A company can purchase flats and houses for investment purposes and rent them out.

    Interest rates are usually higher for limited companies compared to personal mortgages and tighter lending criteria. There are good opportunities available, but you’ll need to consider how much time you want to tie your money up for and the costs and leg-work involved.

    Lending against property
    Accessing returns from buy-to-let and direct property investing is harder than it once, with new tax and mortgage regulations, was. Lending provides an opportunity to earn a passive income from property, with attractive risk-adjusted returns. BondMason has achieved a stable and steady investment track record from a conservative loan portfolio - with an average LTV of 56% - secured against UK property.

    Company Pension Contributions
    Your company can make pension contributions directly into your pension fund whether it be a stakeholder SSAS scheme or a SIPP. A SSAS is a small occupational pension scheme, normally set up by the directors of a business that want more control over the investment decisions relating to their pensions. Either way, the money going into the pension is not taxed by corporation tax.

    Bonds
    If you have no immediate plans to use the company’s cash you could invest it into fixed term bonds. Remember that once deposited the money is tied up for the whole period and there are normally penalties for wanting to withdraw the funds before the settlement date. The ISA eligible Absolute Return Bonds enable investors to target inflation-beating returns, tax free.



    How BondMason can help you access returns from your company’s surplus cash
    Inflation-beating returns
    We make it easy for investors to target attractive returns from secured lending. Since 2015, our clients have achieved average gross returns of 8% p.a1, investing over £40M across 6,000 curated loan investments, with 85% secured against UK property.

    Managing risk
    Achieving attractive returns from lending is about minimising the downside risks. We conduct rigorous due diligence to select our lending partners and assess every loan opportunity to make it easy for clients to build a well-diversified portfolio.

    Accessing your funds
    With no tie-in, you can withdraw your funds when you choose and we pride ourselves on enabling you to access your money when you want it. We aim to fully liquidate funds within 24 to 48 hours*, which we have been able to do in 100% of cases to date.

    Final thoughts
    The decision of what to invest in, requires time in research. The danger is that if you remain indecisive and hold onto too much cash, you could lose out on missed opportunities. Property lending is seen by many investors as the middle ground between the volatility of stock markets and the security of cash.

    Get in touch with the BondMason team today to learn more: [email protected] or 01582 802000

    Nothing in this article should be construed as advice. Your capital is at risk.