Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • daniel80
    • By daniel80 22nd Oct 15, 6:31 PM
    • 228Posts
    • 48Thanks
    daniel80
    London Capital and Finance
    • #1
    • 22nd Oct 15, 6:31 PM
    London Capital and Finance 22nd Oct 15 at 6:31 PM
    Anyone had any dealing with this company. My son has 25k to invest for only 2 years as it will be a house deposit. Iv`e told him to stay away from the stock market as 2 years is not long enough. As he is not overly keen with saving accounts cash isa`s etc due to low interest rates I said what about premium bonds a gamble on winning but stake is safe only loss would be inflation. When I googled investment ideas a link came up who were called specialist investment ideas with free advice. I put in my details..I received a call about half an hour later the guy recommended the above company which was based in Mayfair. he sounded very posh. He said London Capital and Finance were offering bonds paying 8% the money being lent to various companies to a maximum of 60% of their assist. He seems more of a salesman than an advisor and wants to phone back Monday. Brochure looks ok online but something does not seem right. Anyone dealt with these.

    MSE Insert

    Check out our Where to Start Saving guide for help.
    Last edited by MSE Andrea; 01-09-2016 at 2:14 PM.
Page 3
    • Richard54321
    • By Richard54321 25th May 16, 7:42 AM
    • 3 Posts
    • 0 Thanks
    Richard54321
    Most companies deduct 20% standard tax from interest payments unless you can show them you do not pay tax. They cant know what other investments and interest you get. But when you fill your tax return you enter earnings and interest, and tax paid. If you paid too much you will get a rebate. But be aware that tax on savings is at your highest rate and also I understood there is no £1000 free interest allowance for higher tax rate payers. So you could actually be liable for more. Make sure you check your own allowance and obligations.
    • Richard54321
    • By Richard54321 25th May 16, 8:17 AM
    • 3 Posts
    • 0 Thanks
    Richard54321
    But aren't al investments a gamble?
    You cant put odds on failure. Lehmans failed. What odds on failure would they have got pre credit crunch?

    This is not a retail product. It is a direct investment with no consumer protection if it goes wrong. i.e. 100% loss potential with no FSCS protection. Not suitable for inexperienced investors. However, as part of a balanced portfolio of shares and fixed interest securities, it could have a place.

    Do you have a balanced portfolio of shares and fixed interest securities?
    Originally posted by dunstonh
    I have money in fixed investments with returns that just beat inflation after tax. But your argument on Lehmans is a perfect example. Even large established banks go bust. So there is a 1% failure that your bank goes bust. And the FSA rules could change tomorrow and they decide not to compensate anyone, when you have just invested all your money yesterday. But we all take these "safe" gambles or we would just have to have very big mattresses and hope inflation isn't too high!

    My problem is that, after tax (and most investors are likely to be paying 40% not 20%) the interest rates offer are little above inflation. Where investments require regular investment over a period of time it effectively reduces the return you can get on your capital. I can save £3000 with HSBC over a year at 6%. But because it has to be sequential deposits, my average amount invested is only £1500, so half my money has to sit elsewhere waiting to be invested and overall this effectively drops the interest to 3% which after tax at 40% is less than 2%. So back to inflation.

    8% a year for 3 years is very good even after tax. All investments of this type carry a risk but if the company has been successfully delivering for many years I would consider the risk lower than if they have a poor track record of regular losses for investors. But is there a way I can check this out?
    • bigadaj
    • By bigadaj 25th May 16, 8:43 AM
    • 7,835 Posts
    • 4,776 Thanks
    bigadaj
    Most companies deduct 20% standard tax from interest payments unless you can show them you do not pay tax. They cant know what other investments and interest you get. But when you fill your tax return you enter earnings and interest, and tax paid. If you paid too much you will get a rebate. But be aware that tax on savings is at your highest rate and also I understood there is no £1000 free interest allowance for higher tax rate payers. So you could actually be liable for more. Make sure you check your own allowance and obligations.
    Originally posted by Richard54321
    Higher rate taxpayers retain a £500 tax free interest rate allowance which is lost to additional rate taxpayers.
    • bigadaj
    • By bigadaj 25th May 16, 8:52 AM
    • 7,835 Posts
    • 4,776 Thanks
    bigadaj
    I have money in fixed investments with returns that just beat inflation after tax. But your argument on Lehmans is a perfect example. Even large established banks go bust. So there is a 1% failure that your bank goes bust. And the FSA rules could change tomorrow and they decide not to compensate anyone, when you have just invested all your money yesterday. But we all take these "safe" gambles or we would just have to have very big mattresses and hope inflation isn't too high!

    My problem is that, after tax (and most investors are likely to be paying 40% not 20%) the interest rates offer are little above inflation. Where investments require regular investment over a period of time it effectively reduces the return you can get on your capital. I can save £3000 with HSBC over a year at 6%. But because it has to be sequential deposits, my average amount invested is only £1500, so half my money has to sit elsewhere waiting to be invested and overall this effectively drops the interest to 3% which after tax at 40% is less than 2%. So back to inflation.

    8% a year for 3 years is very good even after tax. All investments of this type carry a risk but if the company has been successfully delivering for many years I would consider the risk lower than if they have a poor track record of regular losses for investors. But is there a way I can check this out?
    Originally posted by Richard54321
    You've got to compare like with like.

    This product sounds like it would be a high risk investment for what might be termed sophisticated investors.

    The interest rate is high but the risks seem to be concentrated and unsuitable for most investors in my opinion.

    A better alternative might be a corporate bond fund, like a shares based unit trust or oeic, then your risk to an individual company is reduced and the failure of a single company has an impact that is relatively low.

    Alternatively peer to peer lending might be considered, several platforms offer 10-14% return generally in secured lending with property, industrial equipment, containers, aircraft etc as collateral. One of the issues with these is that you purchase parts of individual loans and so have to do research in each loan which is time consuming if you have large amounts to invest, but at least you a spreading your risk, and one loan failure will only result in a Relatively minor loss.
    • jimjames
    • By jimjames 25th May 16, 12:23 PM
    • 10,845 Posts
    • 8,916 Thanks
    jimjames
    So anyone actually give any pointers as to how to sensibly assess this type of risk for someone who may have enough money to risk some of it but not wanting to literally throw it in the bin?
    Originally posted by Richard54321
    Have you already filled your S&S ISA allowance? If you're prepared for the kind of risk with this "investment" then I assume you already have plenty of other investments too not just savings.
    Remember the saying: if it looks too good to be true it almost certainly is.
    • nb0825
    • By nb0825 8th Jul 16, 11:11 AM
    • 85 Posts
    • 26 Thanks
    nb0825
    One person can put £6,800 into an HTB ISA over 2 years.

    Two people can put £13,600 into an HTB ISA over 2 years.

    A far cry from the £25,000 you said your son wants to invest now. And where's the money whilst a part of it waits to be drip-fed into the HTB ISAs?
    Originally posted by colsten
    Your maths seems a bit off

    £1000 when opening account
    £200 * 24 = £4800
    total = £5800

    I would put the whole sum into a santander 123 account and drip feed into the HTB isa
    • brownstu
    • By brownstu 2nd Aug 16, 6:50 AM
    • 1 Posts
    • 1 Thanks
    brownstu
    brownstu
    Hi...brand new to this site and have but a little knowledge of the financial scene,

    However, before anyone thinks of investing in London Capital & Finance I would go to the "Companies House". site first. They have changed company name 4 times in 4 years....a bit questionable me thinks?
    • mezzamay
    • By mezzamay 25th Aug 16, 10:24 AM
    • 16 Posts
    • 470 Thanks
    mezzamay
    I'm glad I found this thread - I was considering investing in this company... I had partially filled out the online application and got cold feet. Then I came here. Thanks for all the advice and research.
    I have been pestered by them since I started the application... they seem to be attempting a hard sell!
    I think we should always be wary of things that seem too good to be true! 8% for 3 years is very tempting!
    • jimjames
    • By jimjames 25th Aug 16, 11:50 AM
    • 10,845 Posts
    • 8,916 Thanks
    jimjames
    I think we should always be wary of things that seem too good to be true! 8% for 3 years is very tempting!
    Originally posted by mezzamay
    I'm not sure it is really very tempting. I get 5% per year so even without compounding that's 15% over 3 years and totally guarateed, FSCS protected!

    Glad you didn't get caught out though.
    Remember the saying: if it looks too good to be true it almost certainly is.
    • EvelynF
    • By EvelynF 3rd Sep 16, 11:58 AM
    • 1 Posts
    • 0 Thanks
    EvelynF
    Always check the Company out
    I thought this looked quite interesting as have done something similar with Golfbreaks very successfully. However I looked up the details of the Company on Companieshouse website which gives all the info and history of the Company and is quickly and easily readable. After reading this I decided it was not for me so I recommend anyone looking at an investment take the time to do a little bit of research with Companieshouse website. I personally think there are some good investment opportunities out there but everything needs carefully looked at.
    • Bionicbelly
    • By Bionicbelly 11th Sep 16, 7:44 AM
    • 1 Posts
    • 0 Thanks
    Bionicbelly
    London Capital & Finance
    Hi all, apologies if this has already been covered.

    I must admit I looked at these, (who would not with 8% pa for a 3yr investment? paid quarterly)

    I could not find any existing investors to ask.

    However, what put me off is the fact they appear to have changed their name a number if times over the past 4 years or so - not a trait I would expect from such a company. Their latest accounts does not fill me with confidence either which appears to indicate very little in the way of cash.

    check them out at companies house (look for the beta website)


    I am also concerned that some of you are relying on their website for information - lets be honest here - anyone can set up a website and say what they want ~ (even I have a website ) - regretfully the dishonest few have made us all suspicious of the honest many.

    This may be a genuine company with all good intentions, but how do you prove that independently.

    So in the words of the well known TV programme - I'm Out
    Last edited by Bionicbelly; 11-09-2016 at 7:47 AM. Reason: spelling error
    • formidible
    • By formidible 12th Sep 16, 1:05 AM
    • 34 Posts
    • 5 Thanks
    formidible
    London Capital & Finance have a 100% payout record over the last three years.

    https://www.londoncapitalandfinance.co.uk/?term=3&utm_source=BSR&utm_medium=referral&utm_cam paign=3%20year
    • dunstonh
    • By dunstonh 12th Sep 16, 10:54 AM
    • 85,129 Posts
    • 50,146 Thanks
    dunstonh
    London Capital & Finance have a 100% payout record over the last three years.

    https://www.londoncapitalandfinance.co.uk/?term=3&utm_source=BSR&utm_medium=referral&utm_cam paign=3%20year
    Originally posted by formidible
    Bernie Madoff managed 49 years. Although his bent activity didnt come until later.

    Endowments paid surpluses without fail for over 100 years.

    No retail bank had failed in the modern era until 2008 when several did.

    Risks are risks because they could happen or will happen but you dont know when. Complacency can set in the longer a risk fails to happen. However, it does not mean the risk is not present. Run across a road without looking 10 ten times and you may survive all ten times or you may be killed on your first go.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
    • jimjames
    • By jimjames 12th Sep 16, 1:53 PM
    • 10,845 Posts
    • 8,916 Thanks
    jimjames
    London Capital & Finance have a 100% payout record over the last three years.

    https://www.londoncapitalandfinance.co.uk/?term=3&utm_source=BSR&utm_medium=referral&utm_cam paign=3%20year
    Originally posted by formidible
    Nice independent source for that statement there! I'm not claiming it's untrue but relying on a company's website for facts to base a decision that could lose 100% of your money seems a little bit unsafe to me.
    Remember the saying: if it looks too good to be true it almost certainly is.
    • Sledger
    • By Sledger 27th Sep 16, 8:25 PM
    • 2 Posts
    • 0 Thanks
    Sledger
    I recently invested the min 10k with them and the principal of their business seems sound in that they lent money to companies who secure the loan with company assists. Similar to PEER to PEER lending but with LCF you have the additional company asset guarantee if the borrowing Company defaults, . Basically the logic seems sound as if you lent out money at say 12-15% and pay investors 8% there is a nice margin to be made. Building Societies succeed on the same principle but with a lot lower margin but have a higher turnover. Price Waterhouse audited their April 2016 accounts positively which LCF gave me the link which I still need to verify as legitimate. I am still cautious as want to invest a lot more so need to visit LCF offices and get further clarification on the numerous Company House PDF's that are freely available. The change in company name and turnover of Directors being the main issue
    .LONDON CAPITAL & FINANCE LIMITED 01 Jul 2015 - 11 Nov 2015
    SALES AID FINANCE (ENGLAND) LIMITED 18 Feb 2013 - 01 Jul 2015
    SOUTH EASTERN COUNTIES FINANCE LIMITED 28 Jan 2013 - 18 Feb 2013
    SALES AID FINANCE (ENGLAND) LIMITED 21 Sep 2012 - 28 Jan 2013
    SOUTH EASTERN COUNTIES FINANCE LIMITED 12 Jul 2012 - 21 Sep 2012
    I would like some positive feedback from some of the past investors whose Bonds have matured. Another issue here is marketing as I found out about them only by chance. If my Building society charged Mortgage customers 14% and paid investors 8% the only question asked would be they are greedy and should pay me 10%. If LCF borrowing increases they need the punters to buy Bonds and the 8%is is the lure. I would really be pleased to get any feedback to convince me to invest with LCF or avoid them like the Plague. so I can get off the barb wire on top of the fence.
    • Harryhindsight
    • By Harryhindsight 30th Sep 16, 11:57 AM
    • 1 Posts
    • 0 Thanks
    Harryhindsight
    First time on this forum. I am looking to invest a small chunk of my savings in something perhaps more higher risk but with higher return.

    I have looked at who owns the company. The CEO Andy Thomson is on LinkedIn which for me is a small plus.

    What worried me is that they market themselves as a PLC when in fact they are Ltd. This could be for a number of reasons but I remember when my family's company wanted to be listed on the AIM. They began the process... changed their name to a PLC and then banks wanted a massive increase in fees to finish the job so we were forced to procrastinate. So even though they were Ltd they could in theory call themselves a PLC.

    I want the bulk of my savings in something that is not risky and provides a regular return. If I have a small amount in more risky assets but can like with that being wiped out then that is my choice and that is how I would approach my savings goal. If this business is investing the bulk of its cash in building/construction then I would avoid it as imho house prices are likely to fall.

    Hope this helps but in any case good luck with your son's new home - he may be entering the market just at the right time!
    • Malthusian
    • By Malthusian 30th Sep 16, 2:35 PM
    • 1,191 Posts
    • 1,570 Thanks
    Malthusian
    Similar to PEER to PEER lending but with LCF you have the additional company asset guarantee if the borrowing Company defaults
    by Sledger
    This guarantee is only as good as the company behind it. Such guarantees are often worth little more than the paper they are written on.

    Building Societies succeed on the same principle but with a lot lower margin but have a higher turnover.
    Building societies accept deposits, are subject to stringent capital adequacy regulations, and if they do go bust their depositors are covered by the Financial Services Compensation Scheme. None of that applies to LC&F so they cannot be compared.

    Price Waterhouse audited their April 2016 accounts positively which LCF gave me the link which I still need to verify as legitimate.
    PWC would have done nothing more than audit the accounts and issue an unqualified opinion that as far as they can tell the books are in order, the assets and liabilities are what they say they are and no dodgy accounting is taking place. That doesn't tell you anything about whether the business will remain viable in the near or distant future. (That is assuming that they did issue an unqualified opinion, but you have to be really brazenly dodgy for an accountant to bring himself to issue a qualified opinion.)

    I am still cautious as want to invest a lot more so need to visit LCF offices and get further clarification on the numerous Company House PDF's that are freely available.
    You are considerably overestimating your ability to predict the future profitability and creditworthiness of a privately run limited company.

    I would like some positive feedback from some of the past investors whose Bonds have matured
    I have no reason to think they haven't been paid back what they owed, but it's of little relevance as you aren't investing your money when they did.
    • Malthusian
    • By Malthusian 30th Sep 16, 2:36 PM
    • 1,191 Posts
    • 1,570 Thanks
    Malthusian
    I have looked at who owns the company. The CEO Andy Thomson is on LinkedIn which for me is a small plus.
    Originally posted by Harryhindsight
    Seriously? Anyone can create a social media profile. There are some outright scams (not that I believe this is one of them) whose perpetrators have very active profiles on Twitter and the like.

    What worried me is that they market themselves as a PLC when in fact they are Ltd.
    Well, they are a PLC in the strict sense - although the point of a PLC is that its shares can be sold to the public they don't have to. But I agree with what you are driving at. They do seem to be using the letters PLC for marketing purposes. But really this is a trivial issue as far as the risk of investing your money in a single company that could see a total and permanent 100% loss is concerned.
    • dunstonh
    • By dunstonh 30th Sep 16, 4:01 PM
    • 85,129 Posts
    • 50,146 Thanks
    dunstonh
    I have looked at who owns the company. The CEO Andy Thomson is on LinkedIn which for me is a small plus.
    Being on social media is no indication of anything. In fact, there was a recent dodgy scheme that got a lot of coverage on this site and ended up in the financial press where they had active social media but it turned out the person was made up and was using stock photos. The scheme was also unregulated and being incorrect promoted.

    You cannot use social media activity or existence as a badge of security.

    I want the bulk of my savings in something that is not risky and provides a regular return. If I have a small amount in more risky assets but can like with that being wiped out then that is my choice and that is how I would approach my savings goal. If this business is investing the bulk of its cash in building/construction then I would avoid it as imho house prices are likely to fall.
    So, use conventional options then. Dont use unregulated stuff with 100% capital loss potential. It seems daft to have a bulk at one end of the risk scale and a little right at the other end but ignore all the options in between.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
    • goldenmagpie
    • By goldenmagpie 16th Oct 16, 1:28 PM
    • 1 Posts
    • 0 Thanks
    goldenmagpie
    goldenmagpie
    Steve: saw your posts earlier this year. Curious to know your position on LC&F now? They are member of FCA reg no 722603 - whatever that means. I am trying to keep safe, savings for personal health care in future as I have life-quality-reducing and life-limiting condition. Actually would rather give it to charity if i had normal health
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

5,345Posts Today

7,862Users online

Martin's Twitter