Publication, Alternative Credit Investor, has reported on Somo being ranked "No.1 for Financial Health" by 4thWay. Read the full article on their website or below:
"Bridging lender Somo has been ranked number one for best financial health by peer-to-peer lending ratings and research firm 4thWay.
While Somo is not technically a P2P lender as it is not regulated under article 36h, 4thWay 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 4thWay, 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".
4thWay 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 4thWay, receiving its highest 3/3 Plus rating.
"What a way to end the year," said Somo's founder and chief executive Louis Alexander.
"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 4thWay has recognised that it's not just about profitability, but ongoing stable profitability. We intend to keep it this way."
Somo has lent over £300m across 1,500 loans since launching in 2014.
It says it has traded profitably since it was founded in 2014."
Read the full 4thWay review of lending providers with the best financial health here: https://www.4thway.co.uk/news/p2p-lending-providers-in-best-financial-health/
Read more from ACI: Alternative Credit Investor Reports on Somo Achieving the "Highest Rating from 4thWay for Exceptional Lending Practices"
About the 4thWay® PLUS ratings
The 4thWay® PLUS Ratings of peer-to-peer lending accounts and IFISAs are intended to be an easy way for individuals who are looking to start lending today to estimate at a glance whether the interest they earn, combined with any safeguards against losses, are sufficient to protect the average lender from losing money from bad debts in recession and property crash scenarios, provided they lend across a basket of rated lending accounts.
The 4thWay® PLUS Ratings are calculated cautiously and have an in-built margin of safety to further increase the chances that lenders will be satisfied with their results.
The 4thWay PLUS Ratings are calculated to tell you under what scenarios the average lender might expect to lose money in a given peer-to-peer lending product, account or IFISA, provided you have spread your money across a lot of loans and P2P lending sites, and you are willing and able to hold onto the loans until they are all repaid.
The 4thWay PLUS Ratings take both the risk and reward into account. This means, on the positive side, it takes into account the interest you have earned (the reward). On the negative side, it looks at the risk of losses after loans go bad, after attempts are made to recover that bad debt, and after payouts from any reserve funds or other protections (so-called “credit enhancements”) that the P2P lending site or IFISA provider offers you.
The 4thWay PLUS Ratings are based on the international Basel tests that banks are required to do, but to a tougher standard. More on the methodology below.
The 4thWay PLUS Ratings are indicators, not guarantees or promises, so please don’t use them without supplementary research.
Categories: Investor News, 4thWay
