Bridging lender Somo ranked no1 by 4th Way for financial health
Bridging lender Somo has been ranked number one for best financial health by peer-to-peer lending ratings and research firm 4th Way.
While Somo is not technically a P2P lender as it is not regulated under article 36h, 4th Way includes it in its analysis as it argues that it structures itself and its loans to offer the same level of protection as direct lending.
It put Somo above P2P platforms Folk2Folk and Kuflink in its top three rankings for financial health.
Neil Faulkner, managing director of 4th Way, said he defined ‘best financial health’ as “the highest pound amounts made after all costs and taxes that have been stably achieved for years in a row”.
4th Way analysed the lenders’ risks and returns through interviews, data research and submitted evidence.
“[Somo’s] assets outweigh its debts by £7,210,000 and it has over £5m in cash,” Faulkner said. “Now that is true financial health.”
Somo was recently rated ‘exceptional’ by 4th Way, receiving its highest 3/3 Plus rating.
“What a way to end the year,” said Somo’s founder and chief executive Louis Alexander (pictured).
“The team works extremely hard to ensure investors have confidence that we can deliver in terms of high interest rates, service levels and risk mitigation. However, it’s also important for investors to have certainty in the firm’s future. It’s fantastic that a renowned agency like 4th Way has recognised that it’s not just about profitability, but ongoing stable profitability. We intend to keep it this way.”
Read more: SoMo posts rise in profits and turnover as it expands business
Somo has lent over £300m across 1,500 loans since launching in 2014. It has a record of zero capital losses to date.
It says it has traded profitably since it was founded in 2014.
Read more: Somo becomes a patron lender of the NACFB