Manchester-based property-backed lending agency Somo lately celebrated its 10-year birthday by confirming that none of its buyers have misplaced any of their capital with the agency.
This exceptional achievement is a testomony to the corporate’s strict due diligence and restoration processes and powerful monetary well being. In reality, Somo has been recognised by analysis and rankings company 4thWay because the peer-to-peer lending firm with the very best monetary well being available in the market, and has been awarded the celebrated 4thWay +++ Glorious ranking for a second 12 months.
Somo’s buyers have additionally praised the corporate’s customer support and stellar outcomes, giving the platform a 5 star ranking on Feefo.
“We’re pleased with our zero capital loss report and our skill to generate sturdy returns to our loyal buyers,” says Somo’s founder and chief govt Louis Alexander (pictured).
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“After we launched the corporate 10 years in the past, our objective was to deliver property and bridging lending to the plenty, permitting excessive web value and complicated buyers to construct wealth by supporting British enterprise homeowners.
“It’s secure to say that we now have achieved that objective, due to the loyalty and belief of our buyers, the professionalism of our debtors and the onerous work of our improbable crew.”
Somo began as a household enterprise with simply two members of workers. In its early days, the platform was referred to as The Bridge Crowd, reflecting its give attention to property bridging loans.
In December 2020, the corporate rebranded to turn out to be referred to as Social Cash Restricted – or Somo. As Somo, the agency has grown considerably, attracting the eye of institutional buyers reminiscent of Deutsche Financial institution, which supplied a £300m funding line to the platform throughout the economically unsure period of the pandemic.
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Right now, Somo has devoted crew of 83 folks, and it’s nonetheless rising.
The corporate has managed its development by remaining targeted on accountable lending.
All investments are secured over property, and each new mortgage is overseen by a crew of skilled underwriters, who work to make sure that every funding determination is well-informed. Somo additionally has a crew of specialist authorized specialists who undertake extra due diligence on bridging loans and mortgage lending.
Moreover, the corporate collaborates with respected restoration specialists who can step in to deal with any potential borrower arrears.
All property is valued by an unbiased RICS-accredited surveyor, who provides one other layer of due diligence to the lending course of. And Somo additionally ensures hat its accounts are rigorously audited to make sure full transparency and compliance.
Because of this, the agency has been worthwhile for yearly of its existence – a uncommon feat for an alternate lender. Earlier this 12 months, the bridging lender reported a pre-tax revenue of £6.2m for the 12 months to 31 March 2023, up from £5.6m the earlier 12 months.
Moreover, Somo’s lending exercise has been on the rise. So far, it has lent greater than £350m throughout greater than 1,500 loans with no capital losses.
“Once I look again on the previous decade, there was no scarcity of macro-economic upheaval,” says Alexander.
“From the pandemic, to the recession, to the price of dwelling disaster and better base charges, buyers and debtors alike have had rather a lot to take care of.
“However regardless of all of those challenges, Somo has continued to ship.
“Our monitor report speaks for itself. Now we have expanded our crew and our investor base, elevated our earnings, and efficiently recovered all loans with no capital losses.
“We are actually targeted on our future, and constructing on the success that we now have already seen.”