Bridging lender Somo has been ranked primary for greatest monetary well being by peer-to-peer lending rankings and analysis agency 4th Method.
Whereas Somo will not be technically a P2P lender as it isn’t regulated beneath article 36h, 4th Method contains it in its evaluation because it argues that it constructions itself and its loans to supply the identical degree of safety as direct lending.
It put Somo above P2P platforms Folk2Folk and Kuflink in its prime three rankings for monetary well being.
Neil Faulkner, managing director of 4th Method, mentioned he outlined ‘greatest monetary well being’ as “the very best pound quantities made in spite of everything prices and taxes which were stably achieved for years in a row”.
4th Method analysed the lenders’ dangers and returns via interviews, knowledge analysis and submitted proof.
“[Somo’s] property outweigh its money owed by £7,210,000 and it has over £5m in money,” Faulkner mentioned. “Now that’s true monetary well being.”
Somo was not too long ago rated ‘distinctive’ by 4th Method, receiving its highest 3/3 Plus score.
“What a solution to finish the 12 months,” mentioned Somo’s founder and chief govt Louis Alexander (pictured).
“The staff works extraordinarily laborious to make sure buyers trust that we will ship when it comes to excessive rates of interest, service ranges and danger mitigation. Nonetheless, it’s additionally necessary for buyers to have certainty within the agency’s future. It’s implausible {that a} famend company like 4th Method has recognised that it’s not nearly profitability, however ongoing secure profitability. We intend to maintain it this manner.”
Learn extra: SoMo posts rise in income and turnover because it expands enterprise
Somo has lent over £300m throughout 1,500 loans since launching in 2014. It has a file of zero capital losses so far.
It says it has traded profitably because it was based in 2014.
Learn extra: Somo turns into a patron lender of the NACFB
