Funding Circle

Terms and Conditions for Lenders

The following terms and conditions explain:

how Funding Circle works
how to become a member of Funding Circle as a lender
how you may use the website provided and maintained by Funding Circle Limited.

If you decide to become a member of Funding Circle, you must comply with these terms and conditions. These terms and conditions should be read alongside, and are in addition to, our privacy policy (accessible online at http://www.fundingcircle.com).

Please read these terms and conditions carefully and print a copy for your future reference. By using this website and the services provided via the website, you confirm that you have read, understood and agree to these terms and conditions and the privacy policy (each as amended from time to time) and where you're acting on behalf of an LLP, limited company or public body that they agree to these terms and conditions. If you do not agree to these terms and conditions, you must stop using this website immediately.

References in these terms and conditions to "we", "us" and "our" means Funding Circle Limited. References to "you" and "your" mean a user of the website and the services provided via the website, whether as an individual or on behalf of an entity which meets the lender criteria set out below.

Each agreement between each lender and borrower comprises our standard Loan Conditions and Key Contract Terms (together the "Loan Contract"). The Loan Contract is a separate agreement and is governed by separate terms and conditions. If there is a conflict between these terms and conditions and the Loan Contract, the Loan Contract will prevail.

If you are using this website and the services provided via the website, agreeing to these terms and conditions or entering into a Loan Contract on behalf of an LLP, limited company, partnership or public body you warrant that you are duly authorised on act on its behalf.

Special offers

From time to time we may run special offers the terms of which will be available at: http://www.fundingcircle.com/lend/offers/.

1. How to become a lender

1.1 To be a lender on Funding Circle you must meet the following criteria:

(a) you must be an individual, LLP, limited company or public body;

(b) if you are lending in your capacity as individual you must be over 18 years old;

(c) if you are lending in your capacity as individual you must be a permanent resident of the UK (excluding the Channel Islands and the Isle of Man);

(d) if you are a limited company, you must be registered with Companies House;

(e) if you are an LLP, you must have a permanent place of business in the UK (excluding the Channel Islands and the Isle of Man);

(f) if you are a public body, you must be registered or formed with the relevant authority in the UK (excluding the Channel Islands and Isle of Man);

(g) you must have a valid UK bank or building society account; and

(h) you must register your details on the website www.fundingcircle.com.

1.2 If you are not in possession of a valid consumer credit licence, you warrant to Funding Circle that you are not lending in the course of a business or carrying out any type of regulated consumer credit business (as defined under the Consumer Credit Act 1974). This is required for Funding Circle to permit you to lend to sole traders and small partnerships with three or fewer partners.

1.3 If you are in possession of a valid consumer credit licence you cannot lend to sole traders and partnerships with three or fewer partners or otherwise use Funding Circle to carry out a formal consumer credit business. The website will prevent you from lending to these businesses if your settings on the website identify you as having such a licence.

1.4 We do not make any separate enquiries to find out if you have a valid consumer credit licence or not and it is your responsibility to provide this information to us and update us if your status changes.

1.5 For the avoidance of doubt there are no restrictions on the total amount you can lend to limited companies and partnerships with four or more partners at Funding Circle.

1.6 Funding Circle's principal role is to perform administrative functions on behalf of borrowers and lenders in order to bring together prospective borrowers and lenders, to provide a stream-lined process for entering into loans (including the development of standard form loan agreements) and to co-ordinate and facilitate the payment and collection of sums due under or in connection with those loans (including certain limited actions upon a borrower's default as set out in these terms and conditions). Funding Circle will not perform any management functions on a lender's behalf: the lender retains complete control and discretion over whether or not to make a loan to a borrower and on what terms and over all other aspects of its participation in Funding Circle and loans made through it. Nothing Funding Circle does and nothing on the website is intended to operate or be construed as advice or recommendation by Funding Circle to enter into a particular loan.

1.7 Funding Circle gives each borrower a risk band classification at the time a loan request is processed, which is based on information included in the borrower's application and the results of an online check made with Experian. Funding Circle does not edit the information submitted or uploaded by a borrower.

1.8 While Funding Circle adds value to the credit analysis as part of our underwriting exercise, the provision of a risk band classification is intended to be informative only and a lender must form its own opinion regarding the creditworthiness of a borrower and undertake its own research, analysis and assessment of each borrower for each loan, and where appropriate, seek its own independent financial advice.

1.9 Funding Circle accepts no responsibility and disclaims all liability for any information about a borrower made available to prospective lenders through the Funding Circle platform or for risk band classifications. Funding Circle may from time to time at the end of each month, but accepts no obligation to, update or amend at any time borrower's information nor the risk band classification (including between when the loan request is first made and when it is entered into, and during the term of any loan).

1.10 While Funding Circle believes that access to the assets of a borrower (via the secured loan or asset finance product) can provide additional comfort as to the likelihood of repayment, Funding Circle accepts no additional responsibility for the likelihood of a borrower meeting its financial obligations to lenders through the Funding Circle platform in circumstances where such recourse to the assets of the borrower is available.

1.11 You cannot also be a borrower on Funding Circle with loans outstanding, except where you are acting as the director or the proprietor of a business borrowing money and want to act as a lender in a different capacity.

1.12 You warrant to Funding Circle that all information provided to us in the course of the registration and lending process is true and accurate in all respects. You will update us if any of the information you provide to us changes.

1.13 Once you are registered on the website and have applied to lend through Funding Circle, we will carry out identity and fraud checks on you as the proprietor, member or director, your business and other members, or directors of the business using Experian. Funding Circle uses its own internal guidelines and policies when assessing applications but has complete discretion as to whether to allow you to be a lender on the Funding Circle platform. If we cannot get adequate information from Experian then we will ask you to send us copies of the relevant passports or other identification documents plus a utility bill and anything else we may require. If you do not provide all appropriate identification documents you will not be able to lend on the Funding Circle platform. For more details about how we use your information, please refer to our privacy policy at http://www.fundingcircle.com/privacy). We will then set up a Funding Circle lender account for you.

1.14 You can then transfer money into your Funding Circle lender account by debit card on the website, standing order or bank transfer. It is important that you quote your Funding Circle lender account number in the narrative box if you transfer money using a standing order or bank transfer. In the case of transfers by debit cards, a transfer will be deemed to be complete as soon as funds are credited to your Funding Circle lender account.

1.15 As soon as we receive and allocate funds to your Funding Circle lender account you can start lending. There are no fees payable to set up a Funding Circle lender account.

1.16 Money in your Funding Circle lender account will be held by us in a segregated client account with Barclays Bank until or unless it is lent to a borrower at which time it will be transferred to the relevant borrower's Funding Circle account.

1.17 You may only withdraw money from your Funding Circle lender account in excess of the total value of Active Bids, (as defined in section 4.2 below) you have made from your Funding Circle lender account.

2. Username and password

2.1 On registering with us, you must provide a username and email address, enter a password and provide answers to three security questions. These must be used in order to access certain restricted parts of the website. Each time you access your Funding Circle lender account you will need to enter your email address, password and answer one security question. Your username and password are personal to your Funding Circle lender account and are not transferable.

2.2 Your username, password and the answers to security questions are the methods used by us to identify you and so you must keep them secure at all times. You are responsible for all information and activity on the website by anyone using your username and password. If you authorise an employee, sub-contractor or agent to use your Funding Circle lender account you will be responsible for their activity on the website. Any breach of security, loss, theft or unauthorised use of a username, password or security information must be notified to us immediately using the contact details at section 20 of these terms and conditions.

2.3 You agree not to adapt or circumvent the systems in place in connection with the website, nor access the website other than through normal use of it.

2.4 We reserve the right not to act on your instructions where we suspect that the person logged into your Funding Circle lender account is not you or we suspect illegal or fraudulent activity or unauthorised use.

3. The lending process

3.1 There are three ways to lend money on Funding Circle:

(a) By hand-picking the businesses using a Funding Circle search tool to identify loan requests that have not been completed that you might be interested in and bidding on those loan requests in online auctions;

(b) By choosing the criteria for the types and profiles of businesses, which have been determined by Funding Circle, that you want to lend to and then using a Funding Circle tool called Autobid to automatically select the loan requests that you bid on that match your criteria in online auctions as well as purchase loan parts that match your criteria; or

(c) By choosing to purchase parts of a loan (we call these "loan parts") already lent from an existing lender using a Funding Circle search tool or Autobid.

You can also use a mixture of the above ways to lend. There is a short video and more information on the website which explains how to lend money and the bidding process at www.fundingcircle.com/lend/how-to-lend/.

4. The bidding process

4.1 All applications by businesses to borrow at Funding Circle are carefully reviewed by experienced underwriters, and classified at the initial application stage into risk bands based on data from Experian, a credit reference agency. Businesses that pass through this screening process create a loan request page, which lenders can review at www.fundingcircle.com/lend/loan-requests/.

4.2 Once you've decided which business(es) you want to lend to using a Funding Circle search tool, you choose the amount of money that you want to lend and the annual interest rate to charge for your loan part. Provided you have sufficient funds in your Funding Circle lender account, this offer to lend, known as a "bid", then becomes active (an "Active Bid") and is entered into the auction on that loan request page. The minimum bid per business is £20. You can increase the amount by increments of £20. The maximum bid per business is £2,000.

4.3 If two lenders bid the same amount at the same interest rate then the lender who bid first will have their bid ranked in preference. Once each loan is fully funded new lenders for that loan reduce the rate, or "bid down" the rate in a reverse auction. If the amount that you bid exceeds the amount required by the borrower to fully fund the loan, the borrower will be able to borrow part of the amount that you have bid, which will create a loan part for an amount less than the original bid and effectively mean that your bid has partially won.

4.4 If you are using the Autobid tool, you choose the average offer rate you want using the slidebar and turn Autobid on. Funding Circle will automatically bid funds available in your Funding Circle lender account on all available loan requests that match your criteria. The rate offered is calculated for each risk band by adjusting for the expected loss percentage for each risk band. The average rate you offer at could be higher or lower depending on the mix of the different risk bands you lend to. Autobid will also automatically purchase loans parts (which are already lent from an existing lender) listed for sale that offer a rate equal to or above the offer rate for each risk band. Autobid will only purchase loan parts that have no mark-up or mark-down applied to the principal value outstanding. Autobid will lend a maximum of 5% of the total funds in your account to any one business. Expected loss percentages for each risk band are estimates only and you may experience lower or higher loss rates depending on the performance of the businesses you lend to - latest estimates can be found on risk and returns page of the Funding Circle website. If you click on Advanced Settings you can choose the risk bands you want to bid on, set a corresponding offered interest rate per risk band and change the maximum percentage of your funds to lend to any one business. Funding Circle may extend the types of criteria available on Autobid from time to time.

4.5 All bids made by you in an auction on a loan request page or using Autobid are final and cannot be withdrawn unless:

(a) there are sufficient Active Bids from other lenders at lower interest rates to fully fund the total loan requested;

(b) the loan request period expires and the loan is not fully funded;

(d) we withdraw an auction for a loan request or Autobid.

4.6 A loan must be fully funded to complete. A completed loan will be made up of the sum of the bids with the lowest annual interest rate sufficient to fully fund the loan request at the time the borrower accepts the loan or the auction period expires.

4.7 A Funding Circle search tool can also be used to search for loan parts that are listed for sale by existing lenders of Funding Circle, which you can purchase if you have sufficient funds in your Funding Circle lender account.

4.8 We reserve the right to withdraw auctions on loan request pages, or the availability of the Autobid tool, at any time for any reason. We may also change the minimum and maximum amounts that you can bid and will tell you about these changes on the website.

4.9 You can monitor your loan portfolio in the My Account section of the website.

5. The Loan Contract

5.1 Once a loan request is fully funded by bids from you and other lenders and the borrower accepts the aggregated loan request offer, you automatically enter into a Loan Contract (which comprises our standard Loan Conditions and Key Contract Terms) with the borrower for the loan part and your money is then transferred from your Funding Circle lender account to the Funding Circle account of the borrower. The loan documentation will be generated automatically to include the Key Contract Terms, which set out the specific details of the loan, and incorporate our standard Loan Conditions, together the Loan Contract. The first time you bid on an auction or purchase a loan part you will be required to accept the Loan Conditions for all your ongoing lending. You will be deemed to accept the Loan Conditions by ticking a box when prompted.

5.2 Until the loan request has completed no interest will be earned by you.

5.3 If you purchase a loan part from another lender, you will become a party to the Loan Contract with the borrower and your money will be transferred from your Funding Circle lender account to the Funding Circle account of the transferring lender. Information on the transfer of loan parts is set out in clause 7 (Selling your loan part) of the Loan Conditions.

5.4 Each time you purchase or sell a loan part, you will be shown the form of transfer certificate, which will detail the legal terms of your purchase or sale.

5.5 In all Loan Contracts and loan part transfer documentation we will quote a lender's address as being "c/o Funding Circle Limited" and state Funding Circle's postal address. Each lender agrees that all notices and communications given to it by a borrower may be sent to Funding Circle on their behalf.

6. Interest and repayments

6.1 The monthly repayments due to you on each loan part can be viewed in the My Account section of the website. The Loan Contract governs the payment of these amounts.

6.2 All repayments and interest accrued will be paid to your Funding Circle lender account.

6.3 Loans will be for a period of one, three, or five years unless otherwise specified.

6.4 All repayments will be made to lenders without deduction of income tax. It is your responsibility to account for any income tax and other personal taxes that may be payable to the appropriate authorities.

6.5 We will provide an annual statement of interest earnt for tax purposes.

7. Selling your loan part

7.1 If you want to get access to the money you have lent before it has been repaid, you can sell your loan parts to other lenders at Funding Circle, either using another Funding Circle tool called Autosale or by selling your loan parts individually. Please note that you cannot sell loan parts:

(a) with one repayment remaining;

(b) which have moved by more than one risk band or have no risk band;

(c) that are in arrears (have currently missed a repayment) or are in default (that have missed three consecutive repayments)

(d) if, after the application of any mark-up or mark-down, the simple interest rate the buyer would receive if they held the loan part to maturity, and the borrower continues to make all repayments on time ("Buyer Rate") is less than 4% per annum.

7.2 You can apply a mark-up or mark-down of up to 3% of the outstanding principal value of each loan part, to each loan part you decide to sell, subject to the restrictions in clause 7.1 (d).

7.3 The sale price for loan parts will be the outstanding principal amount lent plus the mark-up or mark-down you may choose to apply to the loan parts plus any interest accrued during the month. The accrued interest will be updated automatically at the end of each day.

7.4 To use Autosale, you choose the total amount you want to raise from selling your loan parts. Autosale will then list loan parts with a total sale value close to the amount you want to raise on the website. Loan parts for sale will be listed on the website for sale for 14 days, after which those loan parts that have not been sold will be removed from the sale listing and you will continue to be the lender for that loan. You may choose to relist the loan parts straight away and Autosale will list them for a further 14 days before removing them, and so on.

7.5 You can also sell loan parts outside of the Autosale tool on an individual basis, which allows you to decide exactly which loans you wish to sell. You can select the loans you want to sell in the My Account section of the website, and these loans will be listed on the website for sale for 14 days after which loan parts will be removed from the sale listing and you will continue to be the lender for that loan.

7.6 If you sell loan parts, the sale proceeds will be transferred to your Funding Circle lender account from the buying lender's Funding Circle lender account after deduction of the Funding Circle loan part sale fee (see section 8.3 below).

7.7 We may decide to extend or reduce the 14 day list period from time to time.

8. Lender fees

8.1 From 5 January 2011, we will charge an annual loan servicing fee of 1% of the principal value of each loan part outstanding at the beginning of the monthly period in which a repayment is made (the "Servicing Fee"). The Servicing Fee will be deducted from your Funding Circle lender account for each loan part when the monthly repayment is received. If a borrower misses a repayment the Servicing Fee will not be deducted until that repayment has been received. The Servicing Fee covers our role in administrating and facilitating the loan, not the credit analysis we carry out as part of our underwriting exercise, which is a no-cost added value arrangement only. Please note t here are no Servicing Fees due for any loan parts in loans accepted by the borrower or listed in 2010, for the entire term of the loan parts.

8.2 From 5 January 2011, if you decide to sell a loan part, we will also charge a loan part Sale Fee of 0.25% (the "Sale Fee") of the total outstanding principal value of each loan part sold.

9. The role of Funding Circle

We perform an administrative role in matching borrowers and lenders and in facilitating payments, collection of sums due and onward distribution of funds. We are not a party to any Loan Contracts, save where we act as a lender in our own right (though we have third party rights under the Loan Contracts). If we cease trading, we have arrangements in place with an S&P rated third party back-up servicer called Link Financial Outsourcing Limited who would take on our servicing obligations (see section 13 for more details).We may perform additional tasks in the event that a loan or a loan part is secured, as outlined in the next section. We pass on available Experian data on borrowers to assist each lender's analysis of each loan request and add value to the credit analysis as part of our underwriting exercise.

10. Security and the role of Funding Circle Recoveries Limited

10.1 Where the Key Contract Terms indicate that a loan is to be secured, the borrower's obligations under the Loan Contract to you will be secured by an all assets security agreement and in the event that a borrower fails to make a payment when due or defaults in meeting any material obligations of the loan, you agree that Funding Circle may instruct Funding Circle Recoveries Limited ("FCRL"), a separate wholly-owned subsidiary of Funding Circle Limited (as security holder on your behalf) to enforce the security on your behalf constituted by the all assets security agreement.

10.2 In such circumstances, you agree that FRCL will act on your behalf as security agent in respect of the any borrower's liabilities to you under each loan. All communications to a borrower in connection with any such security will be made through FCRL.

10.3 Where we or FCRL have been provided with it by a relevant borrower, we or FCRL may provide to you as lender certain information about the assets of that borrower and/or an asset register detailing such assets together with estimated forced re-sale value of such assets on enforcement. In such circumstances, any asset valuation provided will be indicative of the value of the asset or assets only and realisation on enforcement in connection with the sale of such asset or assets may be lower (or higher) than the value set out in the asset register.

10.4 FCRL will hold the assets charged under any security upon trust for itself and for all lenders to that borrower (including you) and from time to time FCRL may perform (before or after any enforcement under the terms of the security) all obligations, rights and benefits given to FCRL by any security agreement entered into or any document entered into pursuant to a security agreement. FCRL as security agent shall have certain powers and discretions conferred upon trustees and may also rely on any representation, notice or document believed by it to be genuine correct and appropriately authorised and any statement made by any director, authorised signatory or employee of any person regarding any matters which may reasonably be assumed to be within his knowledge or within his power to verify.

10.5 Where FCRL holds an all assets security agreement in respect of a particular loan or the liabilities of a particular borrower, that security agreement will generally operate to secure all monies due from that borrower to lenders on the Funding Circle platform from time to time. In the event that FCRL is required to enforce that security agreement and any proceeds of recovery against the assets of the borrower become available (after allowing for all of FCRL's costs of enforcement), it is possible that the available proceeds will not be sufficient to discharge all obligations owing by the borrower at that time to lenders on the Funding Circle platform. If that is the case, then the lenders shall only be entitled to recover their proportionate share of such recoveries. In addition, it is possible that there may be other creditors of the borrower that have claims that may be recovered in priority to those of FCRL and the Funding Circle lenders, so the existence of such a security agreement should not be considered to be a guarantee of certain repayment in the event of failure by the borrower in meetings its payments.

10.6 You agree that FCRL shall be entitled to be repaid and reimbursed out of the proceeds of any recovery under any security agreement and that you will pay all reasonable costs incurred by FCRL in enforcing the security or in complying with any instructions from you in connection with any security agreement. You will only be responsible for payment of such costs incurred by FCRL in enforcing security or complying with any instructions from you in connection with the security agreement out of the proceeds of any recovery and to the extent that such costs cannot be recovered by FCRL from the relevant borrower.

11. Large Asset Finance and the role of Funding Circle Asset Finance Limited

11.1 Where the Key Contract terms indicate that the loan is to be a large asset finance loan, the loan shall be used by the borrower in procuring the use of a specific business asset or assets. It must be paid by the borrower to Funding Circle Asset Finance Limited ("FCAF"), a separate wholly owned subsidiary of Funding Circle Limited to satisfy the payment of the asset procurement charge and the finance arrangement charge under the applicable conditional sale or lease agreement.

11.2 In such circumstances FCAF may obtain a third party asset valuation report (which may be provided to you as lender) in connection with the underlying asset. Such valuation will be indicative of the value of the business asset or assets only.

11.3 In such circumstances, FCAF will own the relevant assets and make them available to the borrower under the terms of the conditional sale or leasing arrangement. FCAF will hold the title to the assets and from time to time FACF may perform all obligations, right and benefits given to FCAF as legal title holder of the assets, until such time that any conditional sale is completed.

11.4 To manage any repayments in the circumstances set out at paragraph 12 below, FCAF shall, as required, hold any sums realised from the sale of the business asset or assets in the circumstances set out at paragraph 12 below (the "Realisation Proceeds") and the Realisation Proceeds shall be managed by FCAF on the terms set out below on Funding Circle's behalf.

11.5 Where FCAF holds and manages an asset that has been funded by a particular asset finance loan, that asset will generally be managed with a view to providing additional comfort for the lenders of the underlying asset finance loan concerned that a source for repayment will exist in the circumstances following any default by the borrower (after allowing for all of FCAF's costs of recovery). It is possible that the available Realisation Proceeds will not be sufficient to discharge all obligations owing by the borrower at that time to lenders who have lent the underlying asset finance proceeds on the Funding Circle platform. If that is the case, then the lenders shall only be entitled to recover their proportionate share of such Realisation Proceeds, so the existence of such recourse to the underlying asset should not be considered to be a guarantee of certain repayment in the event of failure by the borrower in meetings its payments.

11.6 You agree that FCAF shall be entitled to be repaid and reimbursed out of the proceeds of any recovery against a finance asset and that you will pay all reasonable costs incurred by FCAF in recovery and realising those assets. You will only be responsible for payment of such costs incurred by FCAF out of the proceeds of any recovery and to the extent that such costs cannot otherwise be recovered by FACF from the relevant borrower.

12. Missed payments

12.1 You agree that in the event of missed payments on a loan Funding Circle will take the administrative steps set out in sections 10.2 to 10.4 of these terms and conditions on your behalf.

12.2 If the borrower misses a payment or only partially pays, the amount due to you and the other lenders, we (ourselves or through an agent acting on our behalf) will contact the borrower to inform them that we will reattempt to collect the outstanding payment in respect of that loan the working day after the payment was due. If our reattempt to collect the funds fails 3 working days after the payment was due, the borrower's account will be treated as an overdue account and we will continue to attempt to collect the funds. We may refer the missed payment to a collections agency (the "Collections Agency"), who will attempt to collect the money on your and any other lenders’ behalf and you authorise us to use the Collections Agency on your behalf. Any fee that the Collections Agency charges for this initial debt chasing will be added to the loan amounts they are seeking to collect and will not reduce the amount available for distribution to lenders.

12.3 If the borrower misses, fails to pay or only partially pays three or more consecutive monthly instalments or four out of six consecutive monthly instalments, the loan will be placed into default and the Collections Agency will engage field agents to attempt to collect the total loan amount outstanding. The Collections Agency will deduct up to 40% of the amount it recovers from the borrower and the remaining proceeds will be distributed to lenders; where possible this fee will be added on to the loan amount outstanding so as not to reduce the amount lenders receive.

12.4 If the Collections Agency is still unable to collect the debt, Funding Circle will tell you that all of the outstanding loan parts will be novated to Funding Circle Recoveries Limited. We need to novate the debt to our subsidiary so there is only one claimant in any legal claim against the borrower, and in order to litigate against the borrower. You will have 14 days to opt out of this novation if you decide to pursue the borrower yourself. Funding Circle Recoveries Limited will then investigate with solicitors the amount of debt that is likely to be successfully recovered through the courts. If deemed appropriate, Funding Circle Recoveries Limited will instruct solicitors to file court claims to recover the debt. Funding Circle Recoveries Limited will pay back to lenders in their proportionate share any funds successfully recovered, less its costs incurred during that recovery. Funding Circle Recoveries Limited will act in a fair and equitable manner to achieve maximum recovery for all affected lenders, which may include extending payment terms or selling the debt to a third party.

12. 5 In circumstances where the relevant loan or loans are secured, FCRL will take the steps outlined in paragraph 10 above.

12.6 In circumstances where the relevant loan or loans are a large asset finance loan, in the event of missed payments on a loan FCAF may take the following steps:
(a) FCAF may terminate its consent to the borrower's possession of the business asset or assets and the borrower shall be required to deliver the assets subject to the conditional sale or leasing arrangement to FCAF. FCAF may (or by its authorised representatives may), without notice and at the borrower's expense, retake possession of the assets;
(b) upon recovery of the business asset or assets, and failing any full settlement of all liabilities due by the borrower, FCAF may as legal title holder of the business assets elect to sell the asset or assets at such price that it deems fit. In such circumstances, any asset valuation report provided as described in paragraph 11 above will be indicative of the value of the business asset or assets only and any realisation or sale proceeds in connection with the sale of such asset or assets may be lower (or higher) than the value set out in such asset valuation report. FCAF is under no obligation to sell the asset or assets under the circumstances set out in this paragraph 12 for the value set out in the asset valuation report;
(c) FCAF shall (after allowing for the costs of recovery and sale) hold and manage the net Realisation Proceeds as outlined above and shall at its discretion and on the conditions set out below transfer such funds to Funding Circle to be distributed to the relevant lenders in repayment of the relevant underlying asset finance loan or loans (in a proportionate manner);
(d) any Realisation Proceeds shall only be transferred to Funding Circle for distribution and payment to lenders (i) at the discretion of FCAF; and (ii) within such period as FCAF deems reasonable following receipt of the sale proceeds and satisfaction of all related expenses.

12.7 Funding Circle will always keep you up to date with the progress of any efforts to collect missed payments, or collect on defaulted debt, which can be viewed in the My Account section of the website.

13. Terminating your membership of Funding Circle

13.1 If you no longer want to be a member of Funding Circle and provided you have no Loan Contracts currently in force you can let us know and we will end your membership.

13.2 We may end your membership of Funding Circle at any time and for any reason, including but not limited to if:

(a) you breach these terms and conditions;

(b) you breach any Loan Contract;

(d) you use the Funding Circle website or any information accessible on or obtained from it for the purpose of canvassing or soliciting any person or enticing any person away from Funding Circle;

(e) you use the Funding Circle website in any of the following ways:

(i) in any way that causes, or is likely to cause, the website or access to it to be interrupted or damaged in any way;

(ii) for fraudulent purposes, or in connection with a criminal offence;

(iii) to send, use or reuse any material that is illegal, offensive, abusive, indecent, defamatory, obscene or menacing; or in breach of copyright, trademark, confidence, privacy or any other right; or is otherwise injurious to third parties; or objectionable; or which consists of or contains software viruses, political campaigning, commercial solicitation, chain letters, mass mailings or any “spam”;

(iv) to cause annoyance, inconvenience or needless anxiety; or

(f) there is no activity in your Funding Circle lender account within a 12 month period.

13.3 On termination we will credit your bank or building society account with any funds left in your Funding Circle lender account or send a cheque to the address last provided by you.

14. Lender's agreements with Funding Circle

14.1 You agree that Funding Circle is making no warranty or representation as to the ability of borrowers to pay and their credit risk and we are in no way liable for the debts of borrowers. You acknowledge that you are bidding and lending entirely at your own risk.

14.2 Calculations we may provide on the website of the likely rate of return on loans are for guidance purposes only and are not guaranteed.

14.3 The information on the website does not constitute advice, recommendation or an endorsement of loan requests or borrowers. The information is not intended to be relied upon as a sole basis for deciding whether or not to lend to a particular business.

14.4 We make no representation or warranty as to the accuracy of the data displayed on a loan request page, nor whether the information is up to date or error free.

14.5 We do not guarantee that there will be sufficient bids to fully fund loans and allow your funds to be lent out, that there will be sufficient borrowers for you to lend to or that there are sufficient other lenders to buy your loan parts should you wish to sell them.

14.6 We do not guarantee that loan parts listed for sale will be bought by other lenders or the time it will take to withdraw funds from Funding Circle by selling loan parts.

14.7 Where Funding Circle has implemented any form of personal guarantee in support of a loan on your behalf as a lender, you accept that the enforceability of such personal guarantee shall be subject to normal legal risks and limitations and that Funding Circle will not have ensured that any individual providing such a guarantee has been independently advised on the impact of such a personal guarantee. Such guarantees can be open to challenge in circumstances where the individual granting the guarantee has been subject to undue pressure or influence from a third party.

15. Back-up servicer arrangements

15.1 If our platform was to fail or we became insolvent, we would transfer our member loan servicing obligations to a third party back-up servicer, Link Financial Outsourcing Limited, with whom we have entered into a back-up servicing arrangement. We also reserve the right to use a back-up servicer prior to insolvency where such action is in the best interests of all of the lenders. If this happens:

(a) you would not be able to sell any loan parts;

(b) you would receive distributions of funds to your external bank or building society account on a quarterly basis;

(d) you would receive quarterly statements of repayments and continue to receive annual statements for tax purposes.

Link Financial Outsourcing Limited would continue to collect the Servicing Fee. Link Financial Outsourcing Limited may charge each lender an additional special situation fee, however, the total annual fees (including the Servicing Fee) would not exceed 2% of the principal value of each loan part outstanding.

16. General terms

16.1 The information provided on the website is directed solely at and is for use solely by persons and organisations that meet the criteria set out in section 1 above and the equivalent criteria set out in the terms and conditions applying to borrowers. This website is not intended for distribution to, or use by, any person or entity in any jurisdiction where such distribution or use would be contrary to applicable law or regulation.

16.2 You are permitted to download and print content from this website solely for your own personal use or in the course of your business to the extent required to use the services provided on this website. Website content must not be copied or reproduced, modified, redistributed, used or otherwise dealt with for any other reason without our express written consent.

16.3 We are not responsible for content downloaded or posted by lenders or borrowers on the website. We will not edit content downloaded or posted on the website.

16.4 We will endeavour to allow uninterrupted access to the website, but access to the website may be suspended, restricted or terminated at any time.

16.5 You agree to use the website only for lawful purposes and in a way which does not infringe the rights of any anyone else or restrict or inhibit anyone else's use and enjoyment of the website.

16.6 You agree not to use the Funding Circle website or any information accessible on or obtained from it for the purpose of canvassing or soliciting any person or enticing any person away from Funding Circle.

16.7 You warrant that you have taken all reasonable precautions to ensure that any data you upload or otherwise submit to the website is free from viruses and anything else which may have a contaminating or destructive effect on any part of the website or any other technology.

16.8 The content and material available on the website is for informational purposes only and should not be regarded as an offer, solicitation, invitation, advice or recommendation to buy or sell investments, securities or any other financial services or banking product. If you are unsure about whether a product is suitable you should contact an independent financial adviser.

16.9 You are responsible for all costs incurred by you in accessing the website.

16.10 We accept no responsibility or liability for your use of content on the website and such use is entirely at your own risk. While we take reasonable precautions to prevent the existence of computer viruses or other malicious programs on the website, we accept no liability for them if they do exist. It is your responsibility to use, update and maintain appropriate antivirus software on your computer.

16.11 Information transmitted via the website will pass over public telecommunications networks. We accept no liability if communications sent via the website are intercepted by third parties or incorrectly delivered or not delivered.

16.12 The website may contain links to other websites. We accept no responsibility or liability for any material supplied by or contained on any third party website which is linked from or to the website, or any use of personal data by such third party.

17. Privacy

You agree that any and all personal information you provide to us via this website may be collected, stored, processed and used in accordance with our current privacy policy (accessible online at http://www.fundingcircle.com/privacy).

18. Intellectual property rights

18.1 Subject to section 16.3 below, as between you and us, we own all present and future copyright, registered and unregistered trade marks, design rights, unregistered designs, database rights and all other present and future intellectual property rights and rights in the nature of intellectual property rights existing in or in relation to the website.

18.2 If and to the extent that any such intellectual property rights vest in you by operation of law or otherwise, you agree to do any and all such acts and execute any and all such documents as we may reasonably request in order to assign such intellectual property rights back to us.

18.3 You shall retain ownership of all copyright in data you upload or submit to the website. You grant us a world-wide exclusive, royalty-free, non-terminable licence to use, copy, distribute, publish and transmit such data in any manner.

18.4 We do not warrant or represent that the content of the website does not infringe the rights of any third party.

19. Your liability to us

You shall be liable to us for any loss or damage suffered by us as a result of any breach of these terms and conditions or any Loan Contract by you, or any fraudulent use of the Funding Circle platform or the website.You will also be further liable to us as contemplated in paragraph 10.5 above in circumstances where a loan is a secured loan.

20. Our liability to you

20.1 We shall not be liable to you for any loss or damage which you may suffer as a result of being a member of Funding Circle or using the services provided via the website, except where such loss or damage arises from our breach of these terms and conditions or was caused by negligence, wilful default or fraud by us or our employees. We are not responsible for any breach of these terms and conditions arising from circumstances outside our reasonable control. Our total liability to you in connection with these terms and conditions, your membership of Funding Circle and your use of the services provided via the website shall not exceed the amount of money you have lent giving rise to the liability.

20.2 Nothing in these terms and conditions shall limit our liability for personal injury or death, fraud, nor for any other liability the exclusion or limitation of which is not permitted by applicable law or regulation.

21. About us

21.1 Funding Circle Limited is a company incorporated in England and Wales, whose registered number is 06968588 and whose registered office and principal place of business is at 99 Southwark Street, London SE1 0JF, United Kingdom.

21.2 Funding Circle is registered with the Information Commissioner (Z213385).

21.3 Funding Circle is a member of CIFAS - the UK's leading anti-fraud association.

21.4 Funding Circle Limited has a Consumer Credit License granted by the Office of Fair Trading (OFT) (Licence No. 0635439) and Funding Circle Recoveries Limited has a Consumer Credit License granted by the Office of Fair Trading (OFT) (Licence No. 0640243). These licences facilitate loans to sole traders and partnerships.

22. Contacting us

Should you have any questions about these terms and conditions, or wish to contact us for any reason whatsoever, please contact us on the Funding Circle website www.fundingcircle.com.

23. Amendments to these terms and conditions

23.1 We may update or amend these terms and conditions from time to time to comply with law or to meet our changing business requirements. We may not always be able to give you advanced notice of such updates or amendments but we will always post them on the website so you can view them when you next log in. By continuing to use the website, you agree to be bound by the terms of these updates and amendments.

23.2 These terms and conditions were last updated on 8th March 2012 .

24. Other important terms

24.1 If any of these terms and conditions is found to be illegal, invalid or unenforceable by any court of competent jurisdiction, the remainder shall continue in full force and effect.

24.2 All disclaimers, indemnities and exclusions in these terms and conditions shall survive termination of the agreement between us for any reason.

24.3 We may, in whole or in part, release, compound, compromise, waive or postpone, in our absolute discretion, any liability owed to us or right granted to us in these terms and conditions without in any way prejudicing or affecting our rights in respect of that or any other liability or right not so released, compounded, compromised, waived or postponed.

24.4 No single or partial exercise, or failure or delay in exercising any right, power or remedy by us shall constitute a waiver by us of, or impair or preclude any further exercise of, that or any right, power or remedy arising under these terms and conditions or otherwise.

24.5 These terms and conditions and the Loan Contracts set out the entire agreement between you and us with respect to your use of the website and the services provided via the website and supersede any and all representations, communications and prior agreements (written or oral) made by you or us.

24.6 Funding Circle may exercise any of its rights under these terms and conditions by itself or through any company or other legal entity which is under the control or ownership of Funding Circle (including without limitation FCRL or FCAF).

24.7 These terms and conditions are governed by English law. In the event of any matter or dispute arising out of or in connection with these terms and condition, you and we shall submit to the non-exclusive jurisdiction of the English courts.

Terms and Conditions for Borrowers

The following terms and conditions explain:

how Funding Circle works
how to become a member of Funding Circle as a borrower
how you may use the website provided and maintained by Funding Circle Limited.

Please read these terms and conditions carefully and print a copy for your future reference. By using this website and the services provided via the website, you confirm that you have read, understood and agree to these terms and conditions and the privacy policy (each as amended from time to time) and where you're acting on behalf of an LLP, limited company or partnership that they agree to these terms and conditions. If you do not agree to these terms and conditions, you must stop using this website immediately.

If you are using this website and the services provided via the website, agreeing to these terms and conditions or entering into a Loan Contract on behalf of an LLP, limited company or partnership, you warrant that you are duly authorised on act on its behalf.

Funding Circle allows registered agents to make a loan application on a borrower's behalf. If a registered agent makes a loan application on your behalf, Funding Circle will be entitled to treat the loan application as having been made with your full authority. The terms of our privacy policy still apply to borrowers who choose to make applications through brokers. If you use an agent to make a loan application on your behalf, you will not become a member of Funding Circle and your application will instead be made and managed through the agent's account.

1. How to become a borrower

1.1 To be a borrower on Funding Circle you must meet the following criteria:

(a) you must be a business (including LLP, limited company, sole trader or partnership);

(b) your business must be registered with Companies House if it is registered;

(d) if you are a sole trader you must be a permanent resident of the UK (excluding the Channel Islands and Isle of Man);

(e) if you are a partnership or LLP you must have a permanent place of business in the UK (excluding the Channel Islands and Isle of Man);

(f) your business must have been actively trading (not dormant) for at least two years or in the case of limited companies have filed accounts at Companies House for at least the last two consecutive years;

(g) if you are a partnership, LLP or limited company, at least 50% of the directors or partners of your business must be permanent residents of the UK (excluding the Channel Islands and Isle of Man);

(h) your business, its directors, members, partners or proprietors must meet minimum credit and fraud risk criteria which will include obtaining a minimum score from Experian, the credit bureau;

(i) your business must not have any outstanding county court judgements of more than 250.00;

(j) you must submit details of your business for publication on the website, some of which we will disclose to lenders (but not all) (see section 3.1 below for more details); and

(k) you must register your details on the website www.fundingcircle.com.

1.2 Directors and/or shareholders of limited companies and members of LLPs may be required to give a personal guarantee before the loan request page is posted on the Funding Circle website.

1.3 Borrowers cannot be public bodies, charities or trusts.

1.4 As part of the registration process we will need to authenticate the identity of the business and certain people authorised to act on its behalf. We will do this using Experian, otherwise we may require you to send us copies of the relevant passports or other identification documents and anything else that we may need. If you do not provide all appropriate identification documents, you will not be able to borrow on the Funding Circle platform.

1.5 Once you're registered on the website and have applied to borrow through Funding Circle, we will carry out credit and fraud checks on you as the proprietor, partner, member or director, your business and other partners, members or directors of the business using Experian. Funding Circle uses its own internal guidelines and policies when assessing applications but has complete discretion as to whether we allow you to be a borrower on the Funding Circle platform.

1.6 You warrant to Funding Circle that all information provided to us in the course of the application and borrowing process is true and accurate in all respects. You will update us if any of the information you provide to us changes.

2. Username and password

2.1 On registering with us, you must provide a username and email address, enter a password and provide answers to three security questions. These must be used in order to access certain restricted parts of the website. Each time you access your Funding Circle borrower account you will need to enter your email address, password and answer one security question. Your username and password are personal to your Funding Circle borrower account and are not transferable.

2.2 Your username, password and the answers to security questions are the methods used by us to identify you and so you must keep them secure at all times. You are responsible for all information and activity on the website by anyone using your username and password. If you authorise an employee, sub-contractor or agent to use your Funding Circle borrower account, you will be responsible for their activity on the website. Any breach of security, loss, theft or unauthorised use of a username, password or security information must be notified to us immediately using the contact details given at section 15 below.

2.3 You agree not to adapt or circumvent the systems in place in connection with the website, nor access the website other than through normal use of it.

2.4 We reserve the right not to act on your instructions where we suspect that the person logged into your Funding Circle borrower account is not you or we suspect illegal or fraudulent activity or unauthorised use.

3. The borrowing process

3.1 Once we have agreed to allow your application onto the Funding Circle platform, a loan request page will be displayed on the website. You can decide to remain anonymous but we must provide information about your credit risk and some other information you provide in your application as a minimum. The Key Contract Terms forming part of the Loan Contract will contain the name of your business. Please see our privacy policy for more information on which details are provided to lenders and those which are withheld. We may amend details you provide on your loan request page (except information identifying you) at our discretion.

3.2 Once the loan request page is posted, the auction process will start and prospective lenders will start bidding to loan your business parts of the amount you have requested. The auction process will set the interest rate for each part of the loan. The information on the loan request page can be edited at any time before the auction begins. After the auction has started you cannot amend the loan request page until the auction period expires, or if you accept a loan you will not be able to amend the loan request page until such time as the entire loan has been repaid in full.

3.3 Funding Circle gives each borrower a risk band classification at the time a loan request is processed, which is based on information included in the borrower's application and the results of an online check made with Experian. Funding Circle does not check or edit the information submitted or uploaded by a borrower.

3.4 Funding Circle's principal role is to perform administrative functions on behalf of borrowers and lenders in order to bring together prospective borrowers and lenders, to provide a stream-lined process for entering into loans (including the development of standard form loan agreements) and to co-ordinate and facilitate the payment and collection of sums due under or in connection with those loans (including certain limited actions upon a borrower's default as set out in these terms and conditions).

3.5 While Funding Circle adds value to the credit analysis as part of our underwriting exercise, the provision of a risk band classification is intended to be informative only and a lender must form its own opinion regarding the creditworthiness of a borrower and undertake its own research, analysis and assessment of each borrower for each loan, and where appropriate, seek its own independent financial advice.

3.6 Funding Circle accepts no responsibility and disclaims all liability for any information about a borrower made available to prospective lenders through the Funding Circle platform or for risk band classifications. Funding Circle may from time to time, but accepts no obligation, to update or amend at any time borrower's information nor the risk band classification (including between when the loan request is first made and when it is entered into, and during the term of any loan).

3.7 Once the loan is fully funded and you accept the aggregated loan request offer, you automatically enter into a Loan Contract with the lenders for each loan part (which comprises our standard Loan Conditions and Key Contract Terms). The loan documentation will be generated automatically to include the Key Contract Terms, which set out the specific details of the loan, and incorporate our standard Loan Conditions, together the Loan Contract. The money is then transferred from each of the relevant Funding Circle lender accounts by us to your Funding Circle borrower account where it can be transferred to your bank or building society account. Please note that if you opt to repay your loan by standing order there will be delay before your loan proceeds can be transferred to you. Once you have accepted a loan it cannot be cancelled for any reason. You will have five days from the end of the auction period to accept the aggregated loan request offer. If you do not accept the aggregated loan request offer within this period your loan request will be cancelled, and any funds bid will be released to lenders. There is no obligation on you to accept the bids. No interest will accrue until you have accepted the aggregated loan request offer.

3.8 If your loan request has not been fully funded within the stated auction period we will remove it from the website within two months of the start of the auction process.

3.9 Loans will be for a period of one, three, or five years unless otherwise specified.

3.10 In all Loan Contracts and loan part transfer documentation we will quote a lender's address as being "c/o Funding Circle Limited" and state Funding Circle's postal address. Each borrower agrees that all notices and communications to be given to a lender will be sent to Funding Circle on that lender's behalf and that this is sufficient to identify the lenders for the purposes of the Loan Contracts.

4. Borrower fees

4.1 If you accept a loan, we will charge:

(a) a completion fee of 2% of the amount borrowed for any loan with a 12 month term

(b) a completion fee of 3% of the amount borrowed for any loan with a 36 month term

(d) a completion fee of 5% of the amount borrowed for any loan that is a large asset finance loan.

We will deduct the completion fee from the amount borrowed before it is transferred to you so you will receive the amount borrowed less the completion fee. A higher completion fee may be charged for applications made by registered agents on your behalf.

4.2 Where the loan is a large asset finance loan, the completion fee above shall include the finance arrangement charge of £100 payable by a borrower to Funding Circle Asset Finance Limited under the relevant conditional sale or lease agreement. There will also be an additional charge of £10 plus £1 per quarter payable on the final asset purchase completion date, and this will be detailed in the conditional sale or lease agreement itself.

4.3 We may choose to waive or reduce the above stated fees from time to time.

4.4 The above fees cover our and our associated companies' roles in administrating and facilitating the loans not the credit analysis we carry out as part of our underwriting exercise which is a no-cost added value arrangement only.

5. Repaying the loan

5.1 The monthly repayments payable to each lender on each loan part in respect of the loans you borrow will be set out in the Loan Contract or Loan Contracts.

5.2 We will collect the repayment amounts each month from your bank or building society account using direct debit or debit card repayments, using credit card repayments or via a standing order. We will charge a fee for each repayment made using a credit card. We will collect the repayment amount due up to 5 days before the date specified in the Loan Contract in order to ensure that funds are received and distributed to lenders.

5.3 The monthly repayments payable by you to each lender can be viewed in the My Account section of the website. You may repay an entire loan early at any time at no extra cost provided you pay the interest due until the end of the month in which the loan is repaid and the principal amount outstanding.

6. Security

%br/ 6.1 Where the Key Contract Terms indicate that a loan is to be a secured loan, each loan and your obligations under the Loan Contract will be secured by way of an all assets security agreement between you and Funding Circle Recoveries Limited ("FCRL"), a separate wholly owned subsidiary of Funding Circle Limited (as security holder on behalf of all lenders) and any future security that a lender may take in respect of the debt due under the loan. If you are unable to make repayments under a Loan Contract and amounts remain outstanding when due or you default in meeting any material obligations of a loan, Funding Circle may instruct FCRL (as security holder on behalf of the lenders) to enforce the security constituted by the all assets security agreement.

6.2 In such circumstances, you agree that FCRL shall be entitled to be repaid and indemnified out of the proceeds of any recovery under the all assets security agreement and that you will otherwise, indemnify FCRL (as security holder on behalf of all lenders), the lenders or any receiver appointed by FCRL (as the case may be) against all costs incurred by any of them in connection with any enforcement or preservation of rights under the all assets security agreement or any other security held from time to time in respect of your obligations under the Loan Contract on a full and unlimited indemnity basis, together with default interest at such amount that will be notified to you in writing by Funding Circle from time to time from the date that the relevant cost was incurred until full payment or discharge of such costs.

6.3 Where FCRL holds an all assets security agreement in respect of a particular loan that security agreement will generally operate to secure all monies due from you to all lenders on the Funding Circle platform from time to time.

6.4 You agree that FCRL shall be entitled to be repaid and indemnified of all costs incurred by FCRL in connection with any or desirable registration of the security constituted by the all assets security agreement or any other security held from time to time in respect of your obligations under Loan Contract at Companies House, the Land Registry or any other body (as may be appropriate) and that you will, on demand, pay to FCRL (as security holder on behalf of the lenders) all such costs.

7. Large Asset Finance

7.1 Where the Key Contract Terms indicate that the loan is to be a large asset finance loan, the loan shall be used by you in procuring the use of a specific business asset or assets. It must be paid by you to Funding Circle Asset Finance Limited ("FCAF"), a separate wholly owned subsidiary of Funding Circle Limited to satisfy the payment of the asset procurement charge and the finance arrangement charge under the applicable conditional sale or lease agreement. In such circumstances, you agree that principal amount of the loan may be remitted directly to FCAF to satisfy the Borrower's obligation to pay the asset procurement charge and the finance arrangement charge.

7.2 Should you miss any payments or default in meeting any material obligations on the loan, you are likely to lose the use of the business asset or assets funded by the loan.

7.3 Where FCAF have taken the steps outlined at paragraph 8.6 below, you agree that FCAF shall be entitled to be repaid and indemnified for all costs incurred by FCAF in recovering the business asset or assets and that you will, on demand, pay to FCAF (as asset financier) all such costs.

8. Missing payments

8.1 If at any time you believe that you may not be able to make one or more repayments under a Loan Contract, please contact us immediately. If you miss a payment or only partially pay the amount due, we (ourselves or through an agent acting on our behalf)�will contact you and ask you to explain why and will attempt to recollect the payment the working day after the payment was due. If our reattempt to collect the funds fails, 3 days after the payment was due your account will be treated as an overdue account, you will be charged a fee of £12.50 and we will continue to attempt to collect the funds. We may refer the missed payment to a collections agency(the "Collections Agency"), who will attempt to collect the money on the lenders' behalf.

8.2 If payment has still not been made 10 days from the date payment was due, the Collections Agency may charge you administration fees equal to 15% of the missed payment amount for their work in collecting amounts outstanding which would be in addition to the loan sums due. �This fee is payable immediately. They may also charge other fees to cover tracing charges, field agents' costs and litigation costs and expenses.

8.3 If you miss, fail to pay or only partially pay, three or more consecutive monthly instalments or four out of six monthly instalments in a six month period, the loan will be placed into default and we will issue you with a default notice and termination notice and will pursue you for the total loan amount outstanding. We will try to give you 28 days notice before filing a default on your credit reference file although we may not always be able to do so. Please see our privacy policy for more details on how we disclose information about you.

8.4 If the Collections Agency is still unable to collect the debt, lenders will novate their debt to Funding Circle Recoveries Limited which may sell the debt to a debt purchaser or pursue you for the outstanding amounts through the courts. If such further action is necessary, it is likely that significant costs will be incurred which will be passed on to you as the defaulting borrower.

8.5 In circumstances where the relevant loan or loans are secured, FCRL will take the steps outlined in section 6 above.

8.6 In circumstances where the relevant loan or loans are large asset finance loans, FCAF may (or its authorised representatives may), without notice and at your expense, retake possession of the business asset or assets and for this purpose may enter any property, site or premises at which the assets are located as detailed under the underlying conditional sale or lease agreement.

9. Terminating your membership of Funding Circle

9.1 If you no longer want to be a member of Funding Circle and provided you have no Loan Contracts currently in force, you can let us know and we will end your membership.

9.2 We may end your membership of Funding Circle at any time and for any reason, including but not limited to if:

(a) you breach these terms and conditions;

(b) you breach any Loan Contract;

(c) you breach the terms of any conditional sale or lease agreement entered into for the use of an asset that is the subject of a large asset finance loan;

(d) we suspect that you have committed fraud, been involved in money laundering or other criminal activities; or

(e) you use the Funding Circle website or any information accessible on or obtained from it for the purpose of canvassing or soliciting any person or enticing any person away from Funding Circle;

(f) you use the Funding Circle website in any of the following ways:

(i) in any way that causes, or is likely to cause, the website or access to it to be interrupted or damaged in any way;

(ii) for fraudulent purposes, or in connection with a criminal offence;

(iv) to cause annoyance, inconvenience or needless anxiety.

9.3 Termination of your membership of Funding Circle will not necessarily result in a termination of any Loan Contract to which you are a party at that time.

9.4 On termination, we will credit your bank or building society account with any funds left in your Funding Circle borrower account or send a cheque to the address last provided by you.

10. Borrower's agreements with Funding Circle

10.1 Membership of Funding Circle does not in any way constitute an obligation on us to procure funding for borrowers or constitute a warranty by us that funding will be available.

10.2 Interest rates advertised by us on the website are indicative only and we do not guarantee that the rates advertised will be available.

10.3 If any personal guarantee is provided of the borrower's obligations, the borrower, directors, shareholders and members represent and warrant that there has been no undue influence or inducement of the guarantor.

10.4 If you are a borrower on Funding Circle, you generally cannot also be a lender while you have loans outstanding. An exception would be where you are lending in your own individual capacity but you happen to be a director or owner of a business borrowing money. We also retain the discretion to grant specific exceptions to this rule.

11. General terms

11.1 The information provided on the website is directed solely at and is for use solely by persons and organisations that meet the criteria set out in section 1 above and the equivalent criteria set out in the terms and conditions applying to lenders. This website is not intended for distribution to, or use by, any person or entity in any jurisdiction where such distribution or use would be contrary to applicable law or regulation.

11.2 You are permitted to download and print content from this website solely for your own personal use or in the course of your business to the extent required to use the services provided on this website. Website content must not be copied or reproduced, modified, redistributed, used or otherwise dealt with for any other reason without our express written consent.

11.3 We are not responsible for content downloaded or posted by lenders or borrowers on the website. We will not edit content downloaded or posted on the website.

11.4 We will endeavour to allow uninterrupted access to the website, but access to the website may be suspended, restricted or terminated at any time.

11.5 You agree to use the website only for lawful purposes and in a way which does not infringe the rights of any anyone else or restrict or inhibit anyone else's use and enjoyment of the website.

11.6 You agree not to use the Funding Circle website or any information accessible on or obtained from it for the purpose of canvassing or soliciting any person or enticing any person away from Funding Circle.

11.7 You warrant that you have taken all reasonable precautions to ensure that any data you upload or otherwise submit to the website is free from viruses and anything else which may have a contaminating or destructive effect on any part of the website or any other technology.

11.8 The content and material available on the website is for informational purposes only and should not be regarded as an offer, solicitation, invitation, advice or recommendation to buy or sell investments, securities or any other financial services or banking product. If you are unsure about whether a product is suitable you should contact an independent financial adviser.

11.9 You are responsible for all costs incurred by you in accessing the website.

11.10 We accept no responsibility or liability for your use of content on the website and such use is entirely at your own risk. While we take reasonable precautions to prevent the existence of computer viruses or other malicious programs on the website, we accept no liability for them if they do exist. It is your responsibility to use, update and maintain appropriate antivirus software on your computer.

11.11 Information transmitted via the website will pass over public telecommunications networks. We accept no liability if communications sent via the website are intercepted by third parties or incorrectly delivered or not delivered.

11.12 The website may contain links to other websites. We accept no responsibility or liability for any material supplied by or contained on any third party website which is linked from or to the website, or any use of personal data by such third party.

12. Privacy

13. Intellectual property rights

13.1 Subject to section 11.3 below, as between you and us, we own all present and future copyright, registered and unregistered trade marks, design rights, unregistered designs, database rights and all other present and future intellectual property rights and rights in the nature of intellectual property rights existing in or in relation to the website.

13.2 If and to the extent that any such intellectual property rights vest in you by operation of law or otherwise, you agree to do any and all such acts and execute any and all such documents as we may reasonably request in order to assign such intellectual property rights back to us.

13.3 You shall retain ownership of all copyright in data you upload or submit to the website. You grant us a world-wide exclusive, royalty-free, non-terminable licence to use, copy, distribute, publish and transmit such data in any manner.

13.4 We do not warrant or represent that the content of the website does not infringe the rights of any third party.

14. Your liability to us

14.1 You shall be liable to us for any loss or damage suffered by us as a result of any breach of these terms and conditions or any Loan Contract by you, or any fraudulent use of the Funding Circle platform or the website.

14.2 You will also be further liable to us as contemplated by paragraphs 6.2 and 6.4 above in circumstances where a loan is to be a secured loan.

15. Our liability to you

15.1 We shall not be liable to you for any loss or damage which you may suffer as a result of being a member of Funding Circle or using the services provided via the website, except where such loss or damage arises from our breach of these terms and conditions or was caused by negligence, wilful default or fraud by us or our employees. We are not responsible for any breach of these terms and conditions arising from circumstances outside our reasonable control. Our total liability to you in connection with these terms and conditions, your membership of Funding Circle and your use of the services provided via the website shall not exceed the greater of: (i) the amount of money you have borrowed giving rise to the liability; and (ii) £10,000.

15.2 Nothing in these terms and conditions shall limit our liability for personal injury or death, fraud nor for any other liability the exclusion or limitation of which is not permitted by applicable law or regulation.

16. About us

16.1 Funding Circle Limited is a company incorporated in England and Wales, whose registered number is 06968588 and whose registered office and principal place of business is at 99 Southwark Street, London SE1 0JF, United Kingdom.

16.2 Funding Circle is registered with the Information Commissioner (Z213385).

16.3 Funding Circle is a member of CIFAS - the UK's leading anti-fraud association.

16.4 Funding Circle Limited has a Consumer Credit License granted by the Office of Fair Trading (OFT) (Licence No. 0635439) and Funding Circle Recoveries Limited has a Consumer Credit License granted by the Office of Fair Trading (OFT) (Licence No. 0640243). These licences facilitate loans to sole traders and partnerships.

17. Contacting us

Should you have any questions about these terms and conditions, or wish to contact us for any reason whatsoever, please contact us on the Funding Circle website www.fundingcircle.com.

18. Amendments to these terms and conditions

18.1 We may update or amend these terms and conditions from time to time to comply with law or to meet our changing business requirements. We may not always be able to give you advanced notice of such updates or amendments but we will always post them on the website so you can view them when you next log in. By continuing to use the website, you agree to be bound by the terms of these updates and amendments.

18.2 These terms and conditions were last updated on 13 February 2012.

19. Other important terms

19.1 If any of these terms and conditions is found to be illegal, invalid or unenforceable by any court of competent jurisdiction, the remainder shall continue in full force and effect.

19.2 All disclaimers, indemnities and exclusions in these terms and conditions shall survive termination of the agreement between us for any reason.

19.3 We may, in whole or in part, release, compound, compromise, waive or postpone, in our absolute discretion, any liability owed to us or right granted to us in these terms and conditions without in any way prejudicing or affecting our rights in respect of that or any other liability or right not so released, compounded, compromised, waived or postponed.

19.4 No single or partial exercise, or failure or delay in exercising any right, power or remedy by us shall constitute a waiver by us of, or impair or preclude any further exercise of, that or any right, power or remedy arising under these terms and conditions or otherwise.

19.5 These terms and conditions and the Loan Contracts set out the entire agreement between you and us with respect to your use of the website and the services provided via the website and supersede any and all representations, communications and prior agreements (written or oral) made by you or us.

19.6 Funding Circle may exercise any of its rights under these terms and conditions by itself or through any company or other legal entity which is under the control or ownership of Funding Circle (including without limitation FCRL or FCAF).

19.7 These terms and conditions are governed by English law. In the event of any matter or dispute arising out of or in connection with these terms and condition, you and we shall submit to the non-exclusive jurisdiction of the English courts.

Loan Conditions

1. Introduction

1.1 When a Loan Request is fulfilled by successful Bids and subsequently accepted by the Borrower, a Loan Contract is created in respect of the resulting Loan. That Loan Contract is made up of:

(a) these Loan Conditions; and

(b) the Key Contract Terms applicable to that Loan, that are agreed between the relevant Borrower and Lenders during the Loan Request, Bid and acceptance processes.

1.2 Where a Loan is made up of various Loan Parts, a separate Loan Contract is formed for every Loan Part, between the Borrower of that Loan and each Lender which has lent it a Loan Part.

2. Repayment

2.1 The Borrower agrees to repay the Lender the total Loan Amount at the times and in the instalments shown in the Key Contract Terms. It is essential that the Borrower makes these payments on time. If the Borrower is late in paying an instalment, the Lender and Funding Circle will have the rights detailed in clause 4 and 5.

2.2 The Borrower's obligation to make repayments to the Lender will be satisfied from the Borrower's Funding Circle Client Account. To the extent there are insufficient funds in the Borrower's Funding Circle Client Account to meet its repayment obligations, Funding Circle will complete a debit or credit card transaction or arrange for a standing order or direct debit payment to be completed (or such other payment method available from time to time) to ensure sufficient funds are deposited into the Borrower's Funding Circle Client Account to meet this obligation (and any other obligation to Lenders), as contemplated by the Funding Circle Terms and Conditions.

2.3 All repayments will be made to Lenders without deduction of income tax.

2.4 Where a Loan is made up of various Loan Parts, each repayment paid by the Borrower will be pro rated between the various Loan Contracts that govern the various Loan Parts and used:

(a) first to pay the current interest and principal due in respect of the Loan Amount(b) then towards repaying any arrears on the Loan and any administration charges or other fees due to Funding Circle under the Funding Circle Terms and Conditions.

3. Interest

The Borrower agrees to pay the Lender interest on the Loan at the agreed interest rate. Interest on the Loan shall be calculated at the outset for the whole period of the Loan and be stated in the Key Contract Terms. Interest shall be paid in instalments on the same dates as principal is due to be paid as specified in the Key Contract Terms.

4. Early Repayment and Termination

4.1 Should the Borrower wish to repay a Loan early, it may do so, but it has to repay the entire Loan Amount and not just some of the Loan Parts. It can do so by following the instructions in My Account and repaying the full Loan Amount the Borrower owes under each Loan Contract in respect of the Loan. On an early repayment, the Loan Amount will include interest that would have accrued to the end of the month in which the early repayment is made.

4.2 The Borrower agrees that Funding Circle may, on the Lenders' behalf, terminate all Loan Contracts relating to a Loan and demand repayment of the full Loan Amount owed by the Borrower under each Loan Contract in respect of that Loan if:

(a) the Borrower misses, fails to pay or only partially pays

(i) three or more consecutive monthly instalments or (ii) four out of six consecutive monthly instalments;

(b) the Borrower has provided false information in a way which affects the decision to allow the Borrower to register as a member of Funding Circle, list Loan Requests on the website, or the risk band that Funding Circle has given to the Borrower;

(c) the Borrower has breached the terms of any Loan Contract it is a party to (including those relating to a different loan on Funding Circle) and either notice has been given to the Borrower ending that Loan Contract or Funding Circle has reasonable grounds to believe that as a result:

(i) the Borrower will also breach the terms of this Loan Contract; or

(ii) any of the other events of termination stated in this clause will occur;

(d) the Borrower has breached the terms of any All Assets Security Agreement it is a party to or any future security that which the Lender or Funding Circle Recoveries Limited may from time to time hold for the Borrower's Debt;

(e) the Borrower's membership of Funding Circle is terminated for any reason under the Funding Circle Terms and Conditions;

(f) any person who has provided a guarantee for the Loan or any Loan Part disputes or threatens to dispute the enforceability of that guarantee or Funding Circle has any reason to believe that a guarantee has become unenforceable, and in either case, a replacement guarantee has not been provided to Funding Circle's reasonable satisfaction within 14 days of a request from Funding Circle; or

(g) the Borrower (or if any person who has provided a guarantee for the Loan or any Loan Part) dies, becomes bankrupt or makes a voluntary arrangement with anyone that they owe money to.

Before making any demand the Lender (or Funding Circle on its behalf) will take all the steps a lender is required to take by law for the Borrower's protection.

5. Funding Circle Fees

5.1 On completion of a Loan Contract, the Borrower shall pay Funding Circle a Loan completion fee of 3% of the total principal amount borrowed under that Loan Contract. Funding Circle will reduce the completion fee payable on that Loan Contract by the amount of the application fee paid by the Borrower to Funding Circle on making the relevant Loan Request. Each Loan completion fee shall be deducted from the Loan proceeds paid to the Borrower at the outset.

5.2 Other fees or charges that may be charged by Funding Circle or any collections agency it may appoint in relation to the Borrower's Loan Contracts and added to the balance outstanding are:

(a) Once a sum has been outstanding for 3 days or more, any debt collection agent that Funding Circle appoints to attempt to collect overdue money from a Borrower on behalf of Lenders will charge an administration fee of up to 15% of the overdue amount.

(b) Tracing charges (for finding the Borrower if he or she can't be contacted by Funding Circle or its collections agency).

(c) Where a field agent has been employed as part of the collections process, Funding Circle or its collection agency may charge a fee.

(d) Litigation and enforcement costs and expenses, including legal fees and expenses, to cover litigation or enforcement of any security held on behalf of the Lender to recover outstanding arrears.

In the case of the fees referred to in (b), (c) and (d) above, the Borrower will be advised of the cost if such action proves necessary. The Borrower will be notified (by way of general update to the Funding Circle Terms and Conditions or on the Funding Circle platform) if these charges change in nature or amount.

6. Transfer by novation

6.1 Each Lender may transfer by novation his or her right, title and interest in any Loan Contract and all associated rights under the Funding Circle Terms and Conditions to any other registered lender on the Funding Circle platform (or to Funding Circle Recoveries Limited if a Loan goes into default as anticipated in the Funding Circle Terms and Conditions).

6.2 The Borrower's rights and obligations under a Loan Contract that has been transferred shall not be adversely affected in any way whatsoever.

6.3 A Borrower shall not be entitled to assign or transfer its rights or obligations under any Loan Contract.

6.4 A transfer by novation shall be effected by the transferring Lender and the new lender entering into a Transfer Certificate. A Transfer Certificate will be entered into by electronic means in accordance with the Funding Circle Terms and Conditions upon the acceptance by the new lender of an offer by the transferring Lender to sell a Loan Part (including using any automatic bid facility) and this will have the same effect as if the Transfer Certificate was signed in a hard single copy.

6.5 At the time of entry into a Transfer Certificate (the "Transfer Time") the Borrower and the transferring Lender shall be released from further obligations towards one another under the relevant Loan Contract (being the "Discharged Obligations"). The Borrower and the new lender shall at the Transfer Time assume those Discharged Obligations towards one another, as if the new lender's details originally appeared in the Key Contract Terms in place of the transferring Lender. The new lender will then become the Lender under that Loan Contract. The Borrower confirms its agreement to these arrangements and waives any requirement for it to be a party to, or receive copy of, a Transfer Certificate. There shall otherwise be no effect on the Key Contract Terms applicable to that Loan Contract.

6.6 Any fees charged by Funding Circle for administering a transfer by novation shall be paid by the relevant Lenders in accordance with the Funding Circle Terms and Conditions, and the Borrower shall not be liable for any fees in connection with the transfer.

7. General

7.1 The Loan Conditions and the Loan Contracts are governed by and construed in accordance with English law, and each Lender and Borrower submits to the Non-exclusive jurisdiction of the English courts.

7.2 In entering into this Loan Contract, the Borrower agrees that it will not borrow any monies from its directors, officers, members, partners or shareholders that ranks in priority of recovery to the Loan. In the event that the Borrower does enter into any such loan, the rights to payment of that loan will be subordinated behind the Loan, except to the extent otherwise required by insolvency law.

7.3 If any part of the Loan Conditions that is not fundamental is found to be illegal or unenforceable, such finding will not affect the validity or enforceability of the remainder of the Loan Conditions or the Loan Contract.

7.4 Any waiver by either party of a breach of any provision of these Loan Conditions and/or any Loan Contract shall not be considered to be a waiver of any other or later breach of the same, of any other, provision.

7.5 Any notices to be given to the Borrower in relation to any Loan Contract shall either be put on the Borrower's My Account section of Funding Circle or shall be sent by email to the Borrower's email registered address .

7.6 The records kept by Funding Circle shall be conclusive of the facts and matters they purport to record except where there is an obvious mistake.

7.7 In the event that a Loan Contract relates to a Loan that exceeds the sum of £25,000 being made to a Borrower that is an individual sole trader or partnership made up of less than 4 individual partners, by entering into such Loan Contract the Borrower makes the following declaration:

"I am entering this agreement wholly or predominantly for the purposes of a business carried on by me or intended to be carried on by me. I understand that I will not have the benefit of the protection and remedies that would be available to me under the Consumer Credit Act 1974 if this agreement were a regulated agreement under that Act. I understand that this declaration does not affect the powers of the court to make an order under section 140B of the Consumer Credit Act 1974 in relation to a credit agreement where it determines that the relationship between the creditor and the debtor is unfair to the debtor. I am aware that, if I am in any doubt as to the consequences of the Agreement not being regulated by the Consumer Credit Act 1974 I should seek independent legal advice."

7.8 The Borrower and Lender agree that, while Funding Circle is not a party to this Loan Contract, Funding Circle may take the benefit of and specifically enforce each express term of this Loan Contract and any term implied under it pursuant to the Contracts (Rights of Third Parties) Act 1999.

7.9 This Loan Contract will be entered into by electronic means in accordance with the Funding Circle Terms and Conditions upon the acceptance by the Borrower of Bids satisfying its initial Loan Request and this will have the same effect as if the Agreement was signed in a hard single copy.

8. Defined terms

In these Loan Conditions and each Loan Contract the following words have the meanings set out next to them in the table below:

"All Assets Security Agreement"

"Bid"

an agreement (if any) to be entered into between the Borrower and the Security Holder (acting on behalf of all of the Lenders to that Borrower) which will secure the repayment of the Borrower's Debt

a bid which a Lender posts on Funding Circle making that Lender's offer of funds in satisfaction of a Loan Request, including any such bid posted automatically on that Lender's behalf using the Autobid tool

"Borrower"

"Borrower's Debt"

the member of Funding Circle identified as the Borrower in the Key Contract Terms

means all of the Borrower's liabilities to the Lender (and where relevant to the Security Holder) present, future, actual or contingent and will include (i) Interest (ii) the Loan and (iii) related costs and expenses

"Funding Circle"

Funding Circle Limited, and also means the Funding Circle online lending platform operated for the purposes of matching Loan Requests and Bids

"Funding Circle Client Account"

means the segregated client bank account that Funding Circle maintains with Barclays Bank plc for the sole purpose of holding funds on behalf of all of the members of Funding Circle, and specifically the part of the contents of that account to which the relevant member of Funding Circle is entitled in accordance with these Loan Conditions and/or any Loan Contract to which it is a party

"Funding Circle Terms and Conditions"

means each of the Borrower terms and conditions and the Lender terms and conditions, both available on Funding Circle's website, as amended or replaced from time to time

"Key Contract Terms"

the summary of the key commercial terms applicable to a particular Loan and Loan Contract made on a single occasion between a Borrower and Lenders, those commercial terms being taken from the Loan Request and subsequent Bid or Bids that formed the Loan Contract

"Lender" or "Lenders"

the member or members of Funding Circle identified as the Lender or Lenders in the Key Contract Terms

"Loan"

the individual loan transaction entered into between a Borrower and a Lender or multiple Lenders following the making of the Loan Request, subsequent Bid or Bids being placed by the relevant Lenders and those Bid or Bids being accepted by the Borrower

"Loan Amount "

in respect of a Loan, the total amount of principal and interest outstanding under the Loan Contract relating to that Loan at the time of calculation

"Loan Conditions"

these Funding Circle Loan Conditions

"Loan Contract"

the agreement governing the terms on which a Lender makes a Loan to a Borrower, in each case made up of the Loan Conditions and Key Contract Terms applicable to the relevant Loan

"Loan Part"

in respect of a Loan which has been lent by multiple Lenders, the part of that Loan which has been lent by a particular Lender

"Loan Request"

a loan request which a potential Borrower posts on Funding Circle requesting loan funds

"My Account"

the part of the Funding Circle website which can only be accessed by a member of Funding Circle, using his or her own secure login details

"Security Holder"

"Transfer Certificate"

means, where security is taken for the Loan, Funding Circle Recoveries Limited

the pre-determined form to be used between two Lenders who have agreed on Funding Circle to buy and sell an interest in a Loan Contract

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Privacy Policy

Funding Circle Privacy Policy

This privacy policy governs the collection, storage and use of personal information collected by us, Funding Circle Limited, via our website at www.fundingcircle.com. It provides you with details about the personal information we collect from you, how we use your personal information and your rights to control personal information we hold about you. Please read this privacy policy carefully – by accessing and using this website, you confirm that you have read, understood and agree to this privacy policy in its entirety. If you do not agree to this privacy policy in its entirety, you must not use this website or the services provided on it.

In this privacy policy, the following terms have the meanings set out below:

"Funding Circle", "we", "us" and "our" means Funding Circle Limited;
"Funding Circle Group" means Funding Circle and any parent company or Subsidiary of Funding Circle from time to time (including but not limited to Funding Circle Recoveries Limited and Funding Circle Asset Finance Limited)
"you" and "your" means a user of the website and the services provided via it;
"Loan Contract" means the agreement between a lender and a borrower comprising our standard Loan Conditions and Key Contract Terms.
"Subsidiary" means any subsidiary company within the meaning of section 1159 of the Companies Act 2006 or any subsidiary undertaking within the meaning of section 1162 of the Companies Act 2006

This privacy policy was last updated on 29 November 2011 to add new provisions to the policy applicable in relation to Funding Circle Recoveries Limited and Funding Circle Asset Finance Limited in connection with new secured loan and asset finance products. Please check back regularly to keep informed of updates to this privacy policy.

1. Who we are

Funding Circle Limited is a company incorporated in England and Wales, whose registered number is 06968588 and whose registered office and principal place of business is at 99 Southwark Street, London SE1 0JF, United Kingdom.

We are registered with the Information Commissioner with registration number Z2133885.

We have a Consumer Credit License granted by the Office of Fair Trading (OFT) (Licence No. 0635439)

We respect your right to privacy and will only process personal information you provide to us in accordance with the Data Protection Act 1998, the Privacy and Electronic Communications (EC Directive) Regulations 2003 and other applicable privacy laws.

If you have any questions about how we collect, store and use personal information, or if you have any other privacy-related questions, please contact us on the Funding Circle website www.fundingcircle.com.

2. Lender specific information

If you are applying to be a member of Funding Circle as a lender then this section 2 explains the type of personal information we collect about you and how we may store, use and disclose your information.

2.1 The personal information we collect about you

(a) When you access, browse this website (including when you submit personal information to us through data entry fields on the website) or apply to be a member of Funding Circle as a lender, and whilst you continue to be a member of Funding Circle, we will collect information from you, which will include the following information:

(i) your name;

(ii) your current and previous postal addresses;

(iii) your phone, fax and e-mail details;

(iv) your bank or building society account details and details of debit cards used to make transfers on Funding Circle;

(v) your date of birth;

(vi) your passwords and security question answers;

(vii) comments you make on blogs and discussion forums on the website;

(viii) correspondence with us by email and post;

(ix) answers to questions required by Experian for identification purposes (although these answers and questions will be deleted by Funding Circle); and

(x) data about your activities using Funding Circle.

(b) If you give us false or inaccurate information and we suspect or identify fraud, we will record this.

(c) If false or inaccurate information is provided and fraud is identified, details will be passed to fraud prevention agencies.

Law enforcement agencies may access and use this information.

We and other organisations may also access and use this information to prevent fraud and money laundering, for example, when:

checking details on applications for credit and credit related or other facilities
managing credit and credit related accounts or facilities
recovering debt
checking details on proposals and claims for all types of insurance
checking details of job applicants and employees

Please contact us using the details provided above if you want to receive details of the relevant fraud prevention agencies.

We and other organisations may access and use from other countries the information recorded by fraud prevention agencies.

(d) We may also collect anonymised details about visitors to the website for the purposes of aggregate statistics or reporting purposes and to calculate referral fees. However, no single individual will be identifiable from the anonymised details we collect or disclose for these purposes.

2.2 How we may store, use and disclose your information

(a) We (or third party data processors, agents and sub-contractors acting on our behalf) may collect, store and use your personal information for the following purposes:

(i) to verify your identity in order to prevent and detect crime and money laundering, including by using scoring methods;

(ii) to manage your Funding Circle lender account with us and update the records we hold about you from time to time;

(iii) to identify fraud;

(iv) to carry out statistical analysis and market research;

(v) to carry out regulatory checks;

(vi) to develop and improve our services and products;

(vii) to make this website available to you and to identify the products and services which you may be interested in;

(viii) where you have given us your consent, to contact you (including by SMS and e-mail) with products and services which we think may interest you; and

(ix) where you have given us your consent, to disclose your personal information to carefully chosen third parties so that they may contact you (including by SMS and e-mail) with products and services which they think may interest you.

(b) Any or all of the processes above may be automated.

(i) to other members of Funding Circle if required to enforce any Loan Contract. If we provide you with information about other Funding Circle members for this purpose then you must only use it to communicate with us about your Loan Contract;

(ii) to a third party if it acquires all (or substantially all) of our business and/or assets in connection with the acquisition; and

(iii) where we are required to do so by applicable law, by a governmental body or by a law enforcement agency.

(iv) to Funding Circle Recoveries or Funding Circle Asset Finance Limited for the purpose of setting up a secured loan or asset finance product and/or enforcing a secured loan.

(v) to any member of the Funding Circle Group for the purposes of providing and administering the Funding Circle platform and services.

(d) We will also provide transactional information to other members of Funding Circle but this information will not include your postal address or payment details. Your full name will be used in the Key Contract Terms. We are not responsible for misuse of this transactional information by Funding Circle members but you should let us know about any misuse of such information.

(e) Details of the borrowers' accounts and how they are managed will be shared with a credit reference agency. Further details of how their information is used are outlined in the borrower specific section of this privacy policy.

(f) We will not disclose, sell or rent your personal information to any third party unless you have consented to this. If you do consent but later change your mind, you may contact us and we will cease any such activity.

3. Borrower specific information

If you are applying to be a member of Funding Circle as a borrower, or are using an agent to make a loan application on your behalf, then this section 3 explains the type of personal information we collect about you and how we may store, use and disclose your information.

3.1 The personal information we collect about you

(a) When you access, browse the website (including when you submit personal information to us through data entry fields on the website) or apply to be a member of Funding Circle as a borrower, or use an agent to make a loan application on your behalf, and whilst you continue to be a member of Funding Circle, we will collect information from you, which will include the following information:

(i) your name and your business name;

(ii) your current and previous home postal addresses;

(iii) your business postal address;

(iv) your business phone, fax and e-mail details;

(v) your business bank or building society account details and details of debit cards used to make payments on Funding Circle;

(vi) your date of birth;

(vii) your passwords and security question answers;

(viii) comments you make on blogs and discussion forums on the website;

(ix) correspondence with us by email and post;

(x) answers to questions required by Experian for identification purposes (although these answers and questions will be deleted by Funding Circle);

(xi) information provided in your application form; and

(xii) data about your activities using Funding Circle.

(b) If you give us false or inaccurate information,either directly or through an agent, and we suspect or identify fraud, we will record this.

(c) If false or inaccurate information is provided and fraud is identified, details will be passed to fraud prevention agencies.

Law enforcement agencies may access and use this information.
We and other organisations may also access and use this information to prevent fraud and money laundering, for example, when:
checking details on applications for credit and credit related or other facilities
managing credit and credit related accounts or facilities
recovering debt
checking details on proposals and claims for all types of insurance
checking details of job applicants and employees

Please contact us using the details provided above if you want to receive details of the relevant fraud prevention agencies.

We and other organisations may access and use from other countries the information recorded by fraud prevention agencies.

(e) We will check information about you held on our own records and also obtain information from credit reference agencies about you and your business partners' personal credit behaviour and personal credit accounts if you are proprietors of a small business and are directors of that business, your business accounts, identity information on beneficial owners of the business, your personal financial partner's personal accounts (if they are a director). If you are a director, we will seek confirmation that the residential address you provide is the same as that shown on the restricted register of directors' usual address at Companies House.

(f) We will also search at fraud prevention agencies for information on your business, you, your personal financial partner (if they are a director), your business partners, beneficial owners and your addresses.

3.2 How we may store, use and disclose your information

(a) We (or third party data processors, agents and sub-contractors acting on our behalf) may collect, store and use your personal information for the following purposes:

(i) to assess your application for credit, including by using scoring methods;

(ii) to check details on applications for credit and credit related and other facilities;

(iii) to verify your identity in order to prevent and detect crime and money laundering, including by using scoring methods;

(iv) to manage your Funding Circle borrower account with us and update the records we hold about you from time to time;

(v) to identify fraud;

(vi) if you do not repay money you have borrowed, to trace your whereabouts and recover debts or enforce a Loan Contract;

(vii) to carry out statistical analysis and market research;

(viii) to carry out regulatory checks;

(ix) to develop and improve our services and products;

(x) to make this website available to you and to identify the products and services which you may be interested in;

(xi) where you have given us your consent, to contact you (including by SMS and e-mail) with products and services which we think may interest you; and

(xii) where you have given us your consent, to disclose your personal information to carefully chosen third parties so that they may contact you (including by SMS and e-mail) with products and services which they think may interest you.

(b) Any or all of the processes above may be automated.

(i) to credit reference agencies who will record information about your application, your business, you and your business partners. For the avoidance of doubt we will not disclose any management account information you supply to us to credit reference agencies;

(ii) to credit reference and fraud prevention agencies, where it will be recorded by them, and supplied to other organisations to perform similar checks, trace your whereabouts and recover debts you owe;

(iii) we may provide information about your loans at Funding Circle and how you manage them to credit reference agencies, where it will be recorded by them but we will not disclose information on your other loans outstanding that has been provided to us from credit reference agencies;

(iv) we may provide information about other loans outstanding with Funding Circle lenders;

(v) to and via an organisation which provides a centralised matching service which it collects from mortgage and/or credit applications, for the purpose of preventing and detecting fraud;

(vi) if you consent, to a reputable, licensed credit broker in the event that you apply to borrow money using Funding Circle and your application is declined or the loan monies are otherwise unavailable and we reasonably believe that the credit broker may be able to help you obtain a loan;

(vii) to other members of Funding Circle if required to enforce any Loan Contract. If we provide you with information about other Funding Circle members for this purpose then you must only use it to communicate with us about your Loan Contract;

(viii) to a third party if it acquires all (or substantially all) of our business and/or assets in connection with the acquisition; and

(ix) where we are required to do so by applicable law, by a governmental body or by a law enforcement agency.

(x) to Funding Circle Recoveries or Funding Circle Asset Finance Limited for the purpose of setting up a secured loan or asset finance product and/or enforcing a secured loan.

(xi) to any member of the Funding Circle Group for the purposes of providing and administering the Funding Circle platform and services.

(d) We will also provide transactional information to other members of Funding Circle but this information will not include your postal address or payment details. The name of your business will be used in the Key Contract Terms. We are not responsible for misuse of this transactional information by Funding Circle members but you should let us know about any misuse of such information.

(e) We will not provide the following information to other Funding Circle members:

(i) addresses and personal details of directors;

(ii) ownership of different shareholders;

(iii) employee details;

(iv) contact numbers or email addresses of the business; and

(v) any other data used in the verification of the directors.

(f) You may decide to reveal your identity in order to secure lower cost finance, or to provide personal information to prospective lenders on your loan request page. Please be aware that this information is available online to other users and therefore we have no control or responsibility for the ways that others members of Funding Circle may use that information. If you ask us, we will remove this personal information as soon as possible.

(g) We will not disclose, sell or rent your personal information to any third party unless you have consented to this. If you do consent but later change your mind, you may contact us and we will cease any such activity.

3.3 What Credit Reference and Fraud Prevention Agencies do

(a) When credit reference agencies receive a search from us they will:

(i) place a credit search “footprint” on your company credit file whether or not your application proceeds. If the search was for a credit application the record of that search (but not the name of the organisation that carried it out) may be seen by other organisations when your business applies for credit in the future;

(ii) place an enquiry search on the personal credit files of any director/owner or partner that have been searched. Place an associate enquiry search on your personal financial partner’s credit file, if that is checked, if they are a director.These enquiry searches will not be seen by other organisations if any director/owner or partner applies for credit in the future;

(iii) link together the previous and subsequent names advised by you, of anyone that is a party to the account;

(iv) place an enquiry or identification search on the record of any shareholder who is a beneficial owner and who we have checked;

(v) create a record of the name and address of your business and its proprietors if there is not one already.

(b) Credit reference agencies supply the following information to us:

(i) information about your business or company, such as previous applications for credit and the conduct of the accounts and also similar personal credit information in your name and of your business partners;

(ii) public information such as County Court Judgments (CCJs) and bankruptcies;

(iii) electoral register information on you and your business partners;

(iv) fraud prevention information; and

(v) confirmation or otherwise that the usual residential addresses supplied by directors match those on the restricted register held at Companies House (or for those directors’ addresses registered under section 243 of the Companies Act, that the usual residential addresses supplied by directors match those on the credit reference agency’s proprietary business directory).

(c) Credit reference agencies will keep records of outstanding debt on file for six years after they are closed, whether settled by you or defaulted.

(d) Your information will not be used by credit reference agencies to create a blacklist or to make a decision.

(e) The information which we and other organisations provide to the credit reference agencies and fraud prevention agencies about you, your business partners and details about your business may be supplied by credit reference agencies and fraud prevention agencies to other organisations and used by them to:

(i) prevent crime, fraud and money laundering by, for example checking details provided on applications for credit and credit related or other facilities;

(ii) check the operation of credit and credit-related accounts;

(iii) verify your identity if you or your business partner(s) applies for other facilities;

(iv) make decisions on credit and credit related services about you and/or your business partner, or your business;

(v) manage your personal, your business partner’s and/or business credit or credit related account(s);

(vi) trace your whereabouts and recover debts that you owe;

(vii) conduct other checks to prevent or detect fraud; and

(f) undertake statistical analysis and system testing.

Organisations may access and use from other countries the information recorded by fraud prevention agencies.

3.4 How we may store, use and disclose information provided to us about third parties

We may use information you or your agent provide to us about directors/business partners and shareholders of your business to verify their identity. We may also disclose information about your business partners and shareholders to credit reference agencies so you must be sure that you have their agreement to do this. Information on shareholders who are beneficial owners will be used and supplied to others only for the purpose of the performance of identity checks and with their specific consent.

4. Agent specific information

If you are applying to be a member of Funding Circle as an agent for borrowers then this section 4 explains the type of personal information we collect about you and how we may store, use and disclose your information.

4.1 The personal information we collect about you

(a) When you access, browse the website (including when you submit personal information to us through data entry fields on the website) or apply to be a member of Funding Circle as an agent, and whilst you continue to be a member of Funding Circle, we will collect information from you, which will include the following information:

(i) your name and your business name;

(ii) your current and previous home postal addresses;

(iii) your business postal address;

(iv) your business phone, fax and e-mail details;

(v) your business bank or building society account details;

(vi) your date of birth;

(vii) your passwords and security question answers;

(viii) comments you make on blogs and discussion forums on the website;

(ix) correspondence with us by email and post;

(x) answers to questions required by Experian for identification purposes (although these answers and questions will be deleted by Funding Circle);

(xi) information provided in your application form; and

(xii) data about your activities using Funding Circle.

(b) If you give us false or inaccurate information and we suspect or identify fraud, we will record this.

(c) If false or inaccurate information is provided and fraud is identified, details will be passed to fraud prevention agencies.
Law enforcement agencies may access and use this information.

We and other organisations may also access and use this information to prevent fraud and money laundering, for example, when:

checking details on applications for credit and credit related or other facilities
managing credit and credit related accounts or facilities
recovering debt
checking details on proposals and claims for all types of insurance
checking details of job applicants and employees

Please contact us using the details provided above if you want to receive details of the relevant fraud prevention agencies.

We and other organisations may access and use from other countries the information recorded by fraud prevention agencies.

4.2 How we may store, use and disclose your information

(a) We (or third party data processors, agents and sub-contractors acting on our behalf) may collect, store and use your personal information for the following purposes:

(i) to assess your creditworthiness;

(ii) to verify your identity in order to prevent and detect crime and money laundering, including by using scoring methods;

(iii) to manage your Funding Circle agent account with us and update the records we hold about you from time to time;

(iv) to identify fraud;

(v) to carry out statistical analysis and market research;

(vi) to carry out regulatory checks;

(vii) to develop and improve our services and products;

(viii) to make this website available to you and to identify the products and services which you may be interested in;

(ix) where you have given us your consent, to contact you (including by SMS and e-mail) with products and services which we think may interest you; and

(x) where you have given us your consent, to disclose your personal information to carefully chosen third parties so that they may contact you (including by SMS and e-mail) with products and services which they think may interest you.

(b) Any or all of the processes above may be automated.

(i) to credit reference agencies who will record information about your business, you and your business partners;

(ii) to credit reference and fraud prevention agencies, where it will be recorded by them, and supplied to other organisations to perform similar checks;

(iii) to and via an organisation which provides a centralised matching service which it collects from mortgage and/or credit applications, for the purpose of preventing and detecting fraud;

(iv) to other members of Funding Circle if required to enforce any Loan Contract that you may have facilitated to put in place for a borrower;

(v) to any member of the Funding Circle Group for the purposes of providing and administering the Funding Circle platform and services.

(vi) to a third party if it acquires all (or substantially all) of our business and/or assets in connection with the acquisition; and

(vii) where we are required to do so by applicable law, by a governmental body or by a law enforcement agency.

(d) We will not disclose, sell or rent your personal information to any third party unless you have consented to this. If you do consent but later change your mind, you may contact us and we will cease any such activity.

4.3 What Credit Reference and Fraud Prevention Agencies do

(a) When credit reference agencies receive a search from us they will:

(i) place a credit search “footprint” on your company credit file;

(ii) place an enquiry search on the personal credit files of any director/owner or partner that have been searched. Place an associate enquiry search on your personal financial partner’s credit file, if that is checked, if they are a director. These enquiry searches will not be seen by other organisations if any director/owner or partner applies for credit in the future;

(iii) link together the previous and subsequent names advised by you, of anyone that is a party to the account;

(iv) place an enquiry or identification search on the record of any shareholder who is a beneficial owner and who we have checked;

(v) create a record of the name and address of your business and its proprietors if there is not one already.

(b) Credit reference agencies supply the following information to us:

(ii) public information such as County Court Judgments (CCJs) and bankruptcies;

(iii) electoral register information on you and your business partners;

(iv) fraud prevention information; and

(c) Credit reference agencies will keep records of outstanding debt on file for six years after they are closed, whether settled by you or defaulted.

(d) Your information will not be used by credit reference agencies to create a blacklist or to make a decision.

(i) prevent crime, fraud and money laundering by, for example checking details provided on applications for credit and credit related or other facilities;

(ii) check the operation of credit and credit-related accounts;

(iii) verify your identity if you or your business partner(s) applies for other facilities;

(iv) make decisions on credit and credit related services about you and/or your business partner, or your business;

(v) manage your personal, your business partner’s and/or business credit or credit related account(s);

(vi) trace your whereabouts and recover debts that you owe;

(vii) conduct other checks to prevent or detect fraud; and

(viii) undertake statistical analysis and system testing.

(f) Organisations may access and use from other countries the information recorded by fraud prevention agencies.

4.4 How we may store, use and disclose information provided to us about third parties

We may use information you provide to us about directors/business partners and shareholders of your business to verify their identity. We may also disclose information about your business partners and shareholders to credit reference agencies so you must be sure that you have their agreement to do this. Information on shareholders who are beneficial owners will be used and supplied to others only for the purpose of the performance of identity checks and with their specific consent.

For details of how we may store, use and disclose information which you provide in relation to borrowers on whose behalf you make loan applications, please refer to section 3 above. You must provide a copy of this privacy policy to any potential borrowers whom you represent. You must ensure that they are made aware of the content of section 3 above and that they give their consent to their information being used in accordance with this privacy policy before you provide any information about the borrower to us.

5. Cookies

This website uses cookies to collect information about you. Cookies are small data files which are placed on your computer by this website and which collect certain personal information about you. This enables us to tailor our service offering (including the website) to provide you with products and services which are more relevant to your individual tastes. However, you may change your website browser settings to reject cookies, although please note that if you do this it may impair the functionality of this website. Third party vendors, including Google, show our advertisements on sites on the internet. These vendors use cookies to serve ads based on a user’s prior visits to this website. Users may opt out of Google's use of cookies by visiting the Google advertising opt out page: http://www.google.co.uk/privacy_ads.html. For further information about cookies, including how to refuse cookies, please visit www.allaboutcookies.org.

6. Security

Whilst we take appropriate technical and organisational measures to safeguard the personal information that you provide to us, we accept no liability if communications are intercepted by third parties or incorrectly delivered or not delivered.

7. Your rights

7.1 You have the following rights:

(a) the right to ask us to provide you with copies of personal information that we hold about you at any time, subject to a fee specified by law (currently £10);

(b) the right to ask us to update and correct any out-of-date or incorrect personal information that we hold about you free of charge; and

(c) the right to opt out of any marketing communications that we (or any third party to whom we have disclosed your personal information with your consent) may send you.

7.2 If you wish to exercise any of the above rights, please contact us using the details specified above.

7.3 You can contact the credit reference agencies currently operating in the UK; the information they hold may not be the same so it is worth contacting them all. They will charge you a small statutory fee.

(a) CallCredit, Consumer Services Team, PO Box 491, Leeds, LS3 1WZ or call 0870 0601414

(b) Equifax PLC, Credit File Advice Centre, PO Box 3001, Bradford, BD1 5US or call 0870 010 0583 or log on to www.myequifax.co.uk

(c) Experian, Consumer Help Service, PO Box 8000, Nottingham NG80 7WF or call 0844 4818000 or log on to www.experian.co.uk.

7.4 Please contact us if you want to receive details of the relevant fraud prevention agencies.

8. Third party sites

This website contains links to other websites operated by third parties. Please note that this privacy policy applies only to the personal information that we collect through this website and we cannot be responsible for personal information that third parties may collect, store and use through other websites. You should always read the privacy policy of each website you visit carefully.

"All Assets Security Agreement" "Bid"	an agreement (if any) to be entered into between the Borrower and the Security Holder (acting on behalf of all of the Lenders to that Borrower) which will secure the repayment of the Borrower's Debt a bid which a Lender posts on Funding Circle making that Lender's offer of funds in satisfaction of a Loan Request, including any such bid posted automatically on that Lender's behalf using the Autobid tool
"Borrower" "Borrower's Debt"	the member of Funding Circle identified as the Borrower in the Key Contract Terms means all of the Borrower's liabilities to the Lender (and where relevant to the Security Holder) present, future, actual or contingent and will include (i) Interest (ii) the Loan and (iii) related costs and expenses
"Funding Circle"	Funding Circle Limited, and also means the Funding Circle online lending platform operated for the purposes of matching Loan Requests and Bids
"Funding Circle Client Account"	means the segregated client bank account that Funding Circle maintains with Barclays Bank plc for the sole purpose of holding funds on behalf of all of the members of Funding Circle, and specifically the part of the contents of that account to which the relevant member of Funding Circle is entitled in accordance with these Loan Conditions and/or any Loan Contract to which it is a party
"Funding Circle Terms and Conditions"	means each of the Borrower terms and conditions and the Lender terms and conditions, both available on Funding Circle's website, as amended or replaced from time to time
"Key Contract Terms"	the summary of the key commercial terms applicable to a particular Loan and Loan Contract made on a single occasion between a Borrower and Lenders, those commercial terms being taken from the Loan Request and subsequent Bid or Bids that formed the Loan Contract
"Lender" or "Lenders"	the member or members of Funding Circle identified as the Lender or Lenders in the Key Contract Terms
"Loan"	the individual loan transaction entered into between a Borrower and a Lender or multiple Lenders following the making of the Loan Request, subsequent Bid or Bids being placed by the relevant Lenders and those Bid or Bids being accepted by the Borrower
"Loan Amount "	in respect of a Loan, the total amount of principal and interest outstanding under the Loan Contract relating to that Loan at the time of calculation
"Loan Conditions"	these Funding Circle Loan Conditions
"Loan Contract"	the agreement governing the terms on which a Lender makes a Loan to a Borrower, in each case made up of the Loan Conditions and Key Contract Terms applicable to the relevant Loan
"Loan Part"	in respect of a Loan which has been lent by multiple Lenders, the part of that Loan which has been lent by a particular Lender
"Loan Request"	a loan request which a potential Borrower posts on Funding Circle requesting loan funds
"My Account"	the part of the Funding Circle website which can only be accessed by a member of Funding Circle, using his or her own secure login details
"Security Holder" "Transfer Certificate"	means, where security is taken for the Loan, Funding Circle Recoveries Limited the pre-determined form to be used between two Lenders who have agreed on Funding Circle to buy and sell an interest in a Loan Contract