Nicola Horlick launches new person-to-business asset lending platform

Nicola Horlick, the well-known City investor and business woman has launched Money&Co, a new person-to-business lending platform. The company will connect investors looking for a better rate of interest with businesses seeking finance.

Horlick first announced her intention to launch Money&Co. last year. The platform aims to improve access to finance for UK SMEs by allowing them to bypass high street banks and borrow from the public.

Horlick explained that Money&Co. aims to provide a speedy turnaround for borrowers. She explained: “All businesses looking to borrow can expect to see the lending auctions go online 72 hours after they first submit their application, after which the auction will be active for a maximum of 14 days. Companies will be able to borrow for up to five years for one arrangement fee, with no costly annual renewals.”

Investment will be open to all lenders able to commit to a minimum of £100, who will then be able to invest a minimum of only £10 into a business of their choosing.

Lenders will be able to select the kind of business they want to invest in, based on a number of factors such as geographic location, industry, risk assessment and credit rating. 

Credit ratings determined by Money&Co.’s “experienced team of credit analysts” will be assigned to each approved business, and will help inexperienced investors select which business to lend to. Loan agreements will be kept to two pages and are written in “straight-forward English”.

A great opportunity

Nicola Horlick added: “Crowdfunding is growing very quickly and Money&Co. provides a great opportunity to offer both businesses and investors something they aren’t getting right now: accessible finance at attractive interest rates.

“Access to finance continues to stifle growth. Small and medium-sized businesses, in particular, struggle to get their hands on much-needed funding. Our banks have taken too tight a hold of the country’s purse strings, so much so that the economic recovery isn’t happening as quickly as it could. Businesses like Money&Co. have the potential to change that. With Money&Co. I want to open up the alternative finance sector so that more people and businesses can bypass the banks.”

Money&Co’s main features are:

•         Minimum loan: £50,000;
•         Maximum loan: £3 million;
•         Minimum commitment for sign up to Money&Co.: £100;
•         Minimum bid: £10;
•         Expected bad debt rate: 1%;
•         Maximum length of auctions: 14 days;
•         Loan period 1-5 years.

Horlick joined S.G. Warburg as a graduate trainee in 1983.  She worked with Leonard Licht, one of the leading fund managers in the City during the 1980s, and together, they built up the Specialist Equity team of what became Mercury Asset Management. She was appointed a director of Mercury in 1989. 

In 1991, Horlick moved to Morgan Grenfell Asset Management and she was appointed managing director of the UK business in 1992.  Over the following five years, funds under management increased organically from £4 billion to £22 billion and Morgan Grenfell became recognised as one of the leading managers of UK pension funds. 

In 1997, she left Morgan Grenfell and set up SG Asset Management for the French bank, Société Générale.  The initial target for funds under management was £5 billion in five years.  This target was reached after two years and within three years, funds under management had reached £7 billion.

In 2004, she set up Bramdean Asset Management LLP with Sir Derek Higgs and the business was launched at the beginning of 2005.  Bramdean ran a number of alternative investment mandates before selling the bulk of its business to Aberdeen Asset Management at the end of 2009.  Bramdean continues to create and structure innovative new investment vehicles, primarily for the film industry. Horlick is also the chairman of Rockpool Investments LLP.