How it Works

Technology is the enabler. People are the key

Experienced team focused on your interests

Investment expertise

Our Investment Team has over 50 years experience in investment institutions including Fidelity, Blackstone, Ares, Lloyds, Babson and JP Morgan.

Sourcing lending partners

We filter through hundreds of Direct Lenders and P2P platforms, using a robust due diligence process to find the best performers.

Selecting lending opportunities

We filter lending opportunities from approved partners. Select your investment settings and access curated opportunities in line with your preferences.

YOU'RE IN CONTROL
Target returns and monitor performance in a few clicks
Intelligent technology that works hard for you

Technology is the enabler

Our carefully designed system enables you to build, monitor and liquidate your holdings quickly and easily.

Easily build your diversified portfolio

Clients typically invest in 100+ different loan positions, creating a diversified portfolio in just a few clicks using the auto-bid tool.

Stay in control using your dashboard

Access your personalised dashboard anytime. Review performance, amend your investment settings and add or withdraw funds in just a few clicks.

getting-started
It's easy to get started

Set up your account

Open your account in just a few minutes by completing the sign up process in just 5 simple steps.

Transfer your funds

Wire your money to your BondMason account, starting with as little as £5,000. This process is fully secure.

Putting your money to work

We aim to fully deploy our clients' capital within an average of 28 days.  This can vary due to seasonal peaks and troughs as well as other factors.

WHAT HAPPENS TO YOUR MONEY
Flow of Funds
1. Deposit funds:

When you open your account, set your deployment parameters then transfer funds to your account.

2. Deploying capital:

As soon as your money is in your BondMason account, we start to deploy it into loan opportunities that meet your criteria. It takes an average of 4 to 6 weeks for your funds to be fully deployed depending on your investment settings. However, because we will always prioritise the quality of loans over deployment rates, the reality is that there will be some periods when this figure alters slightly. For example seasonal peaks and troughs can impact the allocation rate.

3. Cash drag:

This refers to the impact on your returns from having cash uninvested at any one time. There are two occasions that cash drag may affect you when deploying funds through BondMason:

  • At the start: when you first add funds to your BondMason account it can take an average of 4 to 6 weeks for funds to be fully deployed. This will reduce your expected return in the first month or so.  Over a 12 month investment period the impact of the initial cash drag period should be around 0.1-0.3% in the first year.
     
  • When re-investing: there may be a 1-3 day lag between being fully repaid a loan position, and waiting for it to be deployed again. We are able to minimise cash drag by ensuring a steady flow of new receivables available for purchase by working with our approved direct lending partners. We aim to enable clients to have cash fully deployed for over 95% of the time, once their funds have been fully deployed for the first time.
4. Your returns:

You purchase Receivables relating to underlying loans and receivables from third party lending platforms and loan providers. Your returns arise from a Receivable linked to an underlying loan in each case; in the same way that a loan pays interest and capital.

Each lending partner has been reviewed and diligenced by the BondMason team, which has approved 1 in 4 to date. Loans are then filtered to ensure clients can access returns from a curated set of opportunities. Clients access returns when loans are repaid. The returns are calculated as;

Interest payments - Less: the impact of any loan losses - Less: cash drag - Less: fees

We conduct full reconciliations of client money and assets across all loan providers on a daily basis.

5. Re-invest your returns:

You can choose to automatically re-invest your capital and interest when it is received, and also elect to have your monthly interest paid in cash to your nominated bank account.

6. Withdraw your returns:

Interest earned can be withdrawn and be used to supplement your income on a monthly basis. This is available as an option on your dashboard, just select monthly interest withdrawals. This can be switched on and off as you need.

7. Losses:

With any lending your capital is at risk and defaults are likely to happen over time. There are two important steps to help minimise the impact of any losses:

  • Careful loan selection: with a focus on asset-backed and property backed lending means that the end borrower is providing security, should they default on loan or interest repayments.

  • Diversification: With BondMason, clients are able to get a minimum of 50 to 100+ lending opportunities (or receivables) which means if any underlying loan goes bad, the impact on the overall portfolio should be reduced.

We take a prudent approach to lending and we will flag loans as follows:

  • Watchlist: When a loan goes over term or if there is any other reason it has been flagged by our Investment Team we mark it as ‘watchlist’. This does not necessarily mean the position will result in a loss; in the vast majority of cases (90%+), these loans go on to successfully repay in full.
     
  • Recovery: Investments in ‘recovery’ often reflects a lack of engagement by a borrower or the beginning of a recovery process. This  may or may not lead to a loss and depends on a number of factors including the nature and value of our security. The vast majority of these loans repay successfully and in full.
     
  • Write-off: When a recovery has been concluded and there is a shortfall between the outstanding amount and what has been recovered, we mark the balance as a 'write-off'.  This can provide a marker for accounting and tax purposes, although in some cases recovery efforts continue and any subsequent payments received are credited back to the relevant holders.
8. Fees:

We charge a single fee between 1.0% - 1.5% p.a, which is calculated daily based on the amount of capital invested through BondMason. In most cases investors won't feel the full impact of this fee, as we are often able to access the same loans at higher interest rates than standard investors. Please refer to our fees page for more information.

9. Targeting a gross return of up to 8% p.a:

Our clients have achieved an average gross return in excess of 8.0% p.a. in each of 2015, 2016, and 2017 to date. The target return is based on a minimum investment period of 12 months. See our Performance Statistics page.

10. Liquidity:

BondMason is structured to enable clients to access their money when they want to. Normally when an investor invests in direct lending, they have to wait for the loan to be repaid or go into a fixed period bond, which may not suit their investment horizon. Typically clients can fully liquidate within 48 hours, but this is not guaranteed. The average remaining term on the underlying loans is 12 months or less.

Getting Started

It's easy to get started and simple to use. With no tie-in, you can withdraw your funds when you need to.

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