Somo marks 10 years of zero losses to investors
Manchester-based property-backed lending firm Somo recently celebrated its 10-year birthday by confirming that none of its investors have lost any of their capital with the firm.
This remarkable achievement is a testament to the company’s strict due diligence and recovery processes and strong financial health. In fact, Somo has been recognised by research and ratings agency 4thWay as the peer-to-peer lending company with the best financial health in the market, and has been awarded the prestigious 4thWay +++ Excellent rating for a second year.
Somo’s investors have also praised the company’s customer service and stellar results, giving the platform a five star rating on Feefo.
“We are proud of our zero capital loss record and our ability to generate strong returns to our loyal investors,” says Somo’s founder and chief executive Louis Alexander (pictured).
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“When we launched the company 10 years ago, our goal was to bring property and bridging lending to the masses, allowing high net worth and sophisticated investors to build wealth by supporting British business owners.
“It is safe to say that we have achieved that goal, thanks to the loyalty and trust of our investors, the professionalism of our borrowers and the hard work of our fantastic team.”
Somo started as a family business with just two members of staff. In its early days, the platform was known as The Bridge Crowd, reflecting its focus on property bridging loans.
In December 2020, the company rebranded to become known as Social Money Limited – or Somo. As Somo, the firm has grown significantly, attracting the attention of institutional investors such as Deutsche Bank, which offered a £300m funding line to the platform during the economically uncertain era of the pandemic.
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Today, Somo has dedicated team of 83 people, and it is still growing.
The company has managed its growth by remaining focused on responsible lending.
All investments are secured over property, and every new loan is overseen by a team of experienced underwriters, who work to ensure that each investment decision is well-informed. Somo also has a team of specialist legal experts who undertake additional due diligence on bridging loans and mortgage lending.
Furthermore, the company collaborates with reputable recovery experts who can step in to handle any potential borrower arrears.
All property is valued by an independent RICS-accredited surveyor, who adds another layer of due diligence to the lending process. And Somo also ensures hat its accounts are rigorously audited to ensure complete transparency and compliance.
As a result, the firm has been profitable for every year of its existence – a rare feat for an alternative lender. Earlier this year, the bridging lender reported a pre-tax profit of £6.2m for the 12 months to 31 March 2023, up from £5.6m the previous year.
Furthermore, Somo’s lending activity has been on the rise. To date, it has lent more than £350m across more than 1,500 loans with no capital losses.
“When I look back at the past decade, there has been no shortage of macro-economic upheaval,” says Alexander.
“From the pandemic, to the recession, to the cost of living crisis and higher base rates, investors and borrowers alike have had a lot to contend with.
“But despite all of these challenges, Somo has continued to deliver.
“Our track record speaks for itself. We have expanded our team and our investor base, increased our profits, and successfully recovered all loans with no capital losses.
“We are now focused on our future, and building on the success that we have already seen.”
