Farmer cultivates healthy annual return with BondMason
Wiltshire farmer Tim Daw has been harvesting a healthy return from his business’s savings by investing his farm’s money with BondMason and watching it grow.
Tim runs Cannings Cross Farm which is a small arable enterprise with wheat, oilseed rape and biomass rye being the main crops.
His farm is in a part of the country with a strong Neolithic history, and with this in mind, Tim established The Long Barrow At All Cannings, which is a recreated Neolithic long barrow used as a columbarium (a place for cremated remains to be kept), set in a place where visitors can enjoy its beauty and solitude. (www.thelongbarrow.com).
Tim says: “I sold some land two years ago to provide future funds for the farm and my children. The sale generated a large tax bill that I would have to pay to HMRC down the line, so I wanted somewhere I could keep this money for the 12 to18 months before it became payable.
“Ultimately, I invested much of it through the BondMason platform and during the first 18 months that my funds were there, the returns I earned effectively reduced my tax bill by over 10%.”
Prior to investing with BondMason, Tim did thorough research into how to get the best return from the capital that he had generated from his business. He says “I looked at bank deposit accounts but they were barely paying any interest. A friend then suggested that I look into the peer-to-peer lending sector, as this could generate a better income while having an acceptable balance of risk and return.
“I had a number of criteria around access to my funds at the right time, their security, and also I did not want to invest in land.
“I did plenty of research and, as it was a new area for me, I split the cash from the land sale across several firms to further diversify my risk. I was particularly keen on one of them being BondMason as its approach is to ensure its clients are diversified across many loans, adding an extra layer of security for me.
“I am now all settled up with HMRC and have continued to keep the business’s money with BondMason. In fact, when the time came to pay HMRC, I took as little as possible out, as I was much happier with the performance of my investment with BondMason, as well as having the security of investing in asset-backed lending.
“Prior to investing, my calls with BondMason were very reassuring and they clearly answered my questions in an open and knowledgeable manner. Their reporting is also very good and, importantly, the process was very simple when it came to drawing down the funds when I needed them.
“I have quite a bit of my original money still remaining with BondMason and I am happy for it to sit there in the background. I am letting them just get on with it and grow the money as they have done since I became a client.
"I have to say that when I spoke to my accountant about investing in the peer-to-peer sector he said he thought it was quite risky and a bit ‘way out’. My research showed otherwise. While that may be true of some areas, I found if you look carefully you can find low levels of risk combined with returns that are very acceptable.
“The BondMason approach is very suitable for a small business such as mine, particularly as the returns on bank deposit accounts, the main alternative, have been unexciting for such a long while.”
Nothing in this article should be construed as advice, your capital is at risk.