Lend for TV programme production. Weekly Lending Review: week 39

Week 39: 23 – 29 September 2013

We saw 54 new businesses come onto the Funding Circle marketplace last week, including a producer of television programmes and a Liverpool vehicle-hire company. The two most popular sectors for loan requests were retail and the leisure & hospitality industry, with the North-West of England having the most businesses looking for loans than any other region.

New loans

There were 54 new business loans listed last week and there are currently 28 auctions on the marketplace.

The total value of the new listed loans was £2,432,500; that’s an average of £45,056 per loan. The largest loan value was £150,000 and the smallest loan value was £5,000.

Business loans still available for bidding on for the next 3 days or more:

Weekly marketplace trends

These graphs show the most recent activity on the marketplace. The average gross yield graph is reported weekly and shows a rolling two week average. Number of loans, value of loans and secondary market are reported weekly. The dates on the graph should be read as ‘week beginning’, for example: 23-Sep represents the week of 23rd – 29th September.

Weekly average gross yield (2 weeks rolling)

yield

Number of listed loans per week

number

Listed loan value per week

value

News you should know

We’ve started a regular feature where we’ll spend 5 minutes with members of various teams around the Funding Circle office so you, our investor community, get to know the company better. For our first 5 minutes we’re with the Customer Relations team who you may have spoken to on the phone at some point.

Community Discussions

This week we’re talking about investors who place multiple bids on the same loan. You can join the discussion on our community forum.

Have you seen the new Funding Circle blog?  Be sure to subscribe to it with your email address to get regular updates: https://www.fundingcircle.com/blog/.

Loans defaulted last week

No loans were defaulted.

Enjoy lending, The Funding Circle Team

 

You can read last week’s weekly lending review here.

Your 5 minutes with… the Customer Relations Team

The Funding Circle community has been growing steadily over the past three years and with it, so has the Funding Circle team. More than 70 people now work at FCHQ in London so we thought it was about time that we introduced the team to our community.

We’re starting a regular feature where we’ll spend 5 minutes with members of each department, including the product, technology, marketing, credit risk, recoveries and sales teams to gain some insights about their day-to-day activities. To kick off the series we’re with the customer relations team, headed up by Jenah.

cs2 (2)

A brief overview of the Customer Relations team

There are currently 5 team members: Jenah is Team Leader and was Funding Circle’s second employee, having started in June 2010. Clare joined in April 2012, followed by Elaine and Ben in December 2012, and most recently Melissa, who joined in July this year. Ben is affectionately known as Wilko, to distinguish him from all the other Bens in the office!

Day to day activities include:

Answering enquiries from investors via email and telephone, allocating and reviewing all inbound and outbound payments, identity checks to onboard customers and liaising with different teams to resolve problems, relay feedback and provide investor input for new products.

Jenah, why is what your team does important for our customers?

We’re the point of contact between investors and Funding Circle, so you could say that makes us the face of the company. It’s essential in our role to have a broader understanding of how our business operates, which is why we undertake operational tasks as well as providing customer service. Ideally, this means that whatever query you have, the first person you speak to will be able to assist you and you’ll never need to be passed on.

Why did you decide to work at Funding Circle?

Jenah: When I started, there wasn’t even a website! I really liked the concept and I thought it was a great opportunity to get involved in a company from the beginning.

Clare: Funding Circle was really appealing as I saw a fast-growing company and within it, huge potential for career development.

Elaine: I thought it was an interesting concept and was amazed at how far the company had come in such a short space of time.

Wilko: It’s a start-up and has all the fun that comes with it; the people are great and I believe in what Funding Circle stands for.

Melissa: It looked like a fast-paced and dynamic company, which is refreshing and completely different from my last job!

What’s your favourite part of working at Funding Circle?

Elaine: The team spirit. Everyone works really well together.

Wilko: I agree, everyone is approachable and always happy to spend time with you.

Melissa: Yes, me too, the people!

Jenah: I like that it’s a young, vibrant company. The team are great and there’s a real sense of comradery.

Clare: Definitely the people! We have monthly bonding outings with the whole team which are always a lot of fun.

And what would you say is your favourite part of your job?

Clare: Speaking to a customer who you’ve built up a rapport with. It’s rewarding when you’ve helped someone from the beginning, to then seeing how their account is progressing and hearing how much they enjoy using the site.

Jenah: Yes, it’s nice that the company is still small enough to allow you to build and maintain relationships with customers.

Elaine: One investor even sent us a postcard which said “Keep up the good work!”

It must have been nice to have received that! Have there been any other memorable customer experiences?

Jenah: We’ve received funny pictures in the past. Investors have emailed pictures of the view of where they’re writing to us from!

Wilko: Yea, we’ve also received Christmas cards which was lovely!

Elaine: I enjoy making general chit chat with people. I’ve been given pub recommendations for the Blackfriars area, and I’ll happily talk about Ireland!

What would you say is the toughest part of the job?

Jenah: In many situations we’re the middlemen and issues are out of our hands. Say for example there’s a technical problem: on one hand, we’re managing investor expectations and on the other, we’re working to prioritise it with the tech team. We’re limited by external restraints and processes, rather than our own capabilities.

Melissa: I agree, it’s most difficult when things are out of our hands and you need assistance from other teams to be able to do your job.

Clare: Yes, I’d say managing expectations and also dealing with investors who have experienced higher than expected levels of bad debt. Even though it is a risk-based product, inevitably some people will do better or worse than others.

Elaine: We’re still quite a small team so there’s always a prioritisation struggle; if there’s been a technical issue and no repayments have run overnight, it will take priority over a broken account link.

So it sounds like you have to be very people oriented and have good interpersonal skills. Are there certain things that you would pride yourself on in those situations?

Elaine: Yes, as a team we’ll always put in the work, regardless of how long it takes and we’ll do as much as we can when an issue is raised.

Clare: I think clear communication and transparency is crucial.

Melissa: Being patient is also up there!

Wilko: Yes agreed, and having the skills to problem solve.

And aside from Funding Circle, what interests do you all have?

Jenah: I enjoy yoga, reading and I love animals!

Elaine: Cooking, drama and swimming.

Wilko: I could talk about ice-hockey all day. I love it!

Clare: Socialising and playing netball.

Melissa: I am completely addicted to coffee.. When the coffee machine breaks it’s an absolute nightmare. I also enjoy running.

I’m sure the whole team can sympathise with that. Are there any other interesting facts you’d like to share?

Elaine: I’ve worked in a meat factory despite being a vegetarian.

Wilko: We’ve been (unofficially) voted FC’s most attractive team!

Clare: I’d like to think I invented the cava – pineapple cocktail aka, the “Wineapple”…

Ok, I won’t ask..

Which Funding Circle team would you like the next 5 minutes to be with?

 

Downton Abbey’s lawn furniture and 7 other top peer-to-peer lending industry news articles

the-uk-business-funding-breakdown-from-fundingstore.com_

We started highlighting peer-to-peer lending industry articles in August to draw attention to the large amount of coverage out there on the topic. September is no different with a bumper month for peer-to-peer lending news coverage. Here are our favourite articles:

More than half of businesses believe that banks don’t care about them

No news here from Real Business but what is interesting is that ‘only’ 37% of small businesses knew about peer-to-peer lending. This number has certainly increased over the last year.

Funding Circle furnishes the lawns of Downton Abbey

If you’re a fan of the lawn furniture on Downton Abbey, and let’s be honest who isn’t, then you’ll be as excited as us to know that Funding Circle investors helped the company that created them with a £75,000 loan to continue growing. As reported by the Telegraph.

Infographic on SME borrowing in the UK

Ever wondered how much money small and medium businesses are borrowing in the UK? Turns out it’s a col £100bn according to this infographic by our friends over at The Funding Store.

The P2PFA is growing

The Peer-to-Peer Finance Association (of which, we were founding members) is growing with the addition of LendInvest and Thincats, although they were not mentioned in this article.

How to call the bank manager’s bluff

The Sunday Times speaks to Dessi Bell about how she uses invoice financing and peer-to-peer lending to help her sportswear business Zaggora overcome cash flow issues, no banks required. Well done you Dessi!

 

How to profit from crowdfunding

So even Kevin McCloud from Grand Designs is raising money via crowdfunding these days. He’s raised £1.4 million for his housing firm. The article also provides a decent explanation on the difference between crowdfunding and peer-to-peer lending.

 

Bank upstart’s rapid growth needs policing

Reuters features this well-balanced piece on the rapid growth of the peer-to-peer lending industry and why it needs to be regulated, a sentiment we wholeheartedly agree with.

A five minute guide to peer-to-peer lending and crowdfunding

This article by The Express pretty much does what it says on the tin, although it took me longer than five minutes to complete. Maybe I’m a slower than average reader.

News

Weekly Lending Review: week 38

Week 38: 16 – 22 September 2013

Last week was our best week ever for lending as £3.5 million made its way to businesses across the UK. The Midlands and the South East of England were the two most popular areas for loan requests, with working capital cited as the loan purpose for the majority of loans.

New loans

There were 56 new business loans listed last week and there are currently 30 auctions on the marketplace.

The total value of the new listed loans was £3,109,500; that’s an average of £55,527 per loan. The largest loan value was £150,000 and the smallest loan value was £5,000.

Business loans still available for bidding on for the next 3 days or more:

Weekly marketplace trends

These graphs show the most recent activity on the marketplace. The average gross yield graph is reported weekly and shows a rolling two week average. Number of loans, value of loans and secondary market are reported weekly. The dates on the graph should be read as ‘week beginning’, for example: 16-Sep represents the week of 16th – 22nd September.

Weekly average gross yield (2 weeks rolling)

YIELD1112

Number of listed loans per week

number1

Listed loan value per week

value1

News you should know

We’ve started a feature on our blog which will showcase some of the great products that you, our investor community, have helped create by lending to British businesses. This month, we’re with Balm Balm; an organic skincare manufacturer from London. If you have an upcoming birthday or housewarming to go to, these products are unique and make ideal gifts.

Community Discussions

This week we’re talking about taxation of bad debts. Have your say on our community forum.

Have you seen the new Funding Circle blog?  Be sure to subscribe to it with your email address to get regular updates: https://www.fundingcircle.com/blog/.

Loans defaulted last week

Burnley Bakery. Loan 2495

This family-run business had been trading since 1946 and was put into liquidation last month. We have made a full recovery on this loan and all 592 investors have been notified.

Logistical solutions provider. Loan 1469

This Cardiff-based business has been trading for 12 years and specialises in freight management. After experiencing cash-flow difficulties a meeting of creditors was called. The original loan amount was £100,000 and all 1,020 investors have been notified.

Enjoy lending, The Funding Circle Team

You can read last week’s weekly lending review here.

 

Unique beauty products made by a family-run Funding Circle business

Protect your skin this winter with Organic Beauty Products from Balm Balm

Close to 2,500 different businesses have accessed funds through peer-to-peer lender Funding Circle over the past 3 years, which is not only exciting for the businesses themselves, as they can fulfil their growth potential, but also means there are some great stories to tell. With that in mind, we’ll be digging deep into some of these businesses to showcase what you have helped them create.

Following our initial feature on Saber Powersports in Southampton, this month we’ll be looking at Balm Balm; a family-run organic skincare company in London.

Balm Balm was established in 2005 by Glenda Taylor, an aromatherapist, perfumer and natural formulation consultant. Their products are sold online, through stockists and they have also supplied One Aldwych with professional size products for their spa. Balm Balm has an extensive range of products including lip balms, body balms and perfumes as well as a variety of home scents; making them the perfect gift for birthdays and housewarmings.

One of their unique selling points is that their products are all 100% organic and 100% natural, and nothing has been tested on animals. Even their packaging is eco-friendly; it’s all carbon neutral and decorated in organic inks. They really are feel-good beauty products!

 photo (2)

We received a box full of goodies from Balm Balm, which were beautifully packaged and all smell wonderful. My favourite product was their Aromatherapy Bath & Shower Oil Collection (pictured below) which contains 7 bottles so you can use a different fragrance for each day of the week!

 photo (3)

Balm Balm has won numerous awards and is well respected within the organic beauty industry. The business won The Soil Association’s Organic Industry award for the Best Organic Beauty and Bodycare product, as well as the Sunday Times Style Award, for the Best Organic Lip Balm.

Balm Balm came to Funding Circle in July looking for a loan to assist them with their expansion plans. You can read other peer-to-peer lending success stories like this in our case study category on our blog.

Weekly Lending Review: week 37

Week 37: 9 – 15 September 2013

Last week, the majority of loan requests were from businesses located in the Midlands and the most common loan size was £100,000. There were a variety of businesses listed on the marketplace including an award-winning culinary school and a sports clothing retailer.

New loans

There were 49 new business loans listed last week and there are currently 34 auctions on the marketplace.

The total value of the new listed loans was £3,040,900; that’s an average of £62,059 per loan. The largest loan value was £150,000 and the smallest loan value was £10,000.

Business loans still available for bidding on for the next 3 days or more:

Weekly marketplace trends

These graphs show the most recent activity on the marketplace. The average gross yield graph is reported weekly and shows a rolling two week average. Number of loans, value of loans and secondary market are reported weekly. The dates on the graph should be read as ‘week beginning’, for example: 9-Sep represents the week of 9th – 15th September.

Weekly average gross yield (2 weeks rolling)

yield

Number of listed loans per week

number

Listed loan value per week

value

Change to minimum bid rates

We committed to a monthly review of the minimum bid rates, with two weeks’ notice before they are adjusted. A number of factors were considered when reviewing the rates, including general economic conditions and costs of alternative borrowing products. The outcome of the second review is a 0.1% increase in the A, B and C risk bands. The new rates will come into effect for loan requests listed after 9am on Tuesday 1st October. The new rates are as follows:

A+: 6% (no change)

A: 7.3% (+0.1%)

B: 8.3% (+0.1%)

C: 9.3% (+0.1%)

C-: 11.5% (no change)

News you should know

Did you help an adventure experience company buy a new engine for a jet boat? Take a look at the new boat in action in this picture story told by Simeon Penn, director of Saber Powersports.

Community Discussions

This week we’re talking about buying and selling loan parts from other investors. Have your say on our community forum.

Have you seen the new Funding Circle blog?  Be sure to subscribe to it with your email address to get regular updates: https://www.fundingcircle.com/blog/.

Loans defaulted last week

No loans were defaulted last week.

Enjoy lending, The Funding Circle Team

Weekly Lending Review: week 36

Week 36: 2 – 8 September 2013

Last week, one of the largest business loans we have ever listed appeared on the marketplace. An IT company based in Buckinghamshire is looking for a £450,000 loan, which is still available to bid on. Most businesses were located in the South East and the majority of business owners cited expansion and growth capital as the reason for needing finance.

New loans

There were 50 new business loans listed last week and there are currently 29 auctions on the marketplace.

The total value of the new listed loans was £3,042,500; that’s an average of £60,850 per loan. The largest loan value was £450,000 and the smallest loan value was £10,000.

Business loans still available for bidding on for the next 3 days or more:

Weekly marketplace trends

These graphs show the most recent activity on the marketplace. The average gross yield graph is reported weekly and shows a rolling two week average. Number of loans, value of loans and secondary market are reported weekly. The dates on the graph should be read as ‘week beginning’, for example: 2-Sep represents the week of 2nd – 8th September.

Weekly average gross yield (2 weeks rolling)

yield

Number of listed loans per week

number

Listed loan value per week

value11

News you should know

If you follow our regular video updates, you’ll know that there are some amazing independent British businesses using Funding Circle so we thought we’d feature some of the great products and services that come out of you supporting them. The first up is Saber Powersports in Southampton, who have offered up to 75% off their water-based adventure experiences to the Funding Circle community.

Community Discussions

This week we’re talking about offsetting bad debt against tax liabilities. Have your say on our community forum.

Have you seen the new Funding Circle blog?  Be sure to subscribe to it with your email address to get regular updates: https://www.fundingcircle.com/blog/.

Loans defaulted last week

Photographic equipment retailer. Loans 462 & 1555

This Leicester-based business has been trading since 2006 but encountered cash-flow difficulties this year. The original loan amounts were £75,000 and £45,000 and all 1,132 investors have been notified.

Cardiff bar operator. Loan 1718

This company runs 2 cafe/bars in Cardiff and following a downturn in trade, was put into administration in July. The original loan amount was £73,000 and all 784 investors have been notified.

Enjoy lending, The Funding Circle Team

blog-banner-forum

You can read last week’s Weekly Lending Review here.

75% off powerboating experiences from Funding Circle business Saber Powersports

Make the most of the end of summer with an exhilarating trip on a powerboat, discounted by up to 75%!

 

If you follow our regular video updates, you’ll know that there are some amazing independent British businesses using Funding Circle. The range and quality of products and experiences from the 2,500+ businesses you have helped fund is quite impressive, so we thought we’d feature some of the great products and services that come out of you supporting them. Hopefully, you’ll like what you see and spread the word, helping our borrowers do more business and helping you get great, independent products at an often reduced rate.

fcshopper1

This month we’re featuring Saber Powersports from Southampton; Europe’s largest Powerboating experience company. They have 7 powerboats, each offering different experiences from Shamrock Quay. With only a few weeks of summer left, now is a great time to get on the water and enjoy some high-speed boating! Their experience days promise speed, exhilaration and excitement, and you even get to drive some the boats yourself!

Their fleet includes the fastest powerboat in Europe which is sure to get the adrenaline pumping. You can choose from a range of outings like their two and a half hour ‘Drive the Hypercat’ experience or the ‘007 Powerboat Adventure,’ so you can take to the seas on one of James Bond’s favourite ways to travel.

Saber Powersports has a secret page on their website with some great deals for their friends and family that they would love to share with Funding Circle investors to say thank you, as well as fellow Funding Circle business owners and employees. Click here to see some of the great deals they have, which could save you as much as 75% on experiences*!

Saber Powersports came to Funding Circle in May looking for a loan to buy a new engine for one of their jet boats. You can watch their new boat in action in our video.

Some terms and conditions:

*Please note: The offer described above is an invitation to treat made by the Borrower to the Funding Circle community. The publication of this offer by Funding Circle is not, and shall not be construed in any way as, a recommendation or approval by Funding Circle of the offer (or of any other goods or services of the Borrower). For the avoidance of doubt, Funding Circle accepts no responsibility or liability whatsoever for any goods or services provided by the Borrower to any person at any time.

 

3 essential tips for growing a small business

In our latest business advice video, Simeon Penn, Director of Saber Powersports, shares with us his 3 top tips for growing a small business. Simeon, an ex-national powerboat racing champion, was successful in transforming his lifelong hobby into a profitable business. Saber Powersports offers adventure-packed activities on the water off the coast of Southampton and is now the largest powerboat experience company in Europe.

His 3 tips are:

 

Tip 1: Do something you love.

Tip 2: Talk to your friends and tell them about your business idea.

Tip 3: Try it! If you try something and it fails, at least you’ve tried.

Watch the video for more detail on each tip.

Saber Powersports borrowed £20k in May from 168 people through Funding Circle to buy an engine for a new jet boat.  If you’re looking for business finance, find out how your business loan could be funded by people across the UK.

6 unusual staffing solutions to improve the effectiveness of your business

flexible1

Introduction

British businesses have had a lot to contend with recently, what with the economic slowdown and the drop in net lending to businesses. The challenge that remains for SMEs of today is for them to remain productive whilst keeping down their costs. One way to do this is to embrace the huge advances being made by remote working and sharing tools and developing a flexible attitude towards staffing out your workforce.

One thing that the past years of recession has taught us is how to adapt and improvise and SME’s are in a great position to do this. They have agility and flexibility on their side; allowing them to adopt new practises with relative ease. The increasing influence of mobile technology and internet services has opened the floodgate for new and exciting workforce solutions for small businesses which will help ensure they stay on par with or ahead of their larger competitors. Here are some ideas for you to think about:

1. Do you even need an office space anymore?

Freshbooks questions whether small businesses really need an office at all anymore. Cloud computing has made it possible for people to work from pretty much anywhere with an internet connection and many UK workers are opting to work remotely rather than within the traditional office space.

Of course, not having an office will significantly lower your overheads, making it an attractive option if you’re just starting out your business or need resource for other areas. You’ll save on rent, utility bills and insurance before even considering the staff-related benefits. There would be no transport costs for you or your staff and commuting times are eliminated. Londoners top the list for having the longest commute in the UK, spending on average 56 minutes travelling to and from work each day.

The availability of cheap or free business applications and programmes strengthen the argument to lose the office; you could start using Google Hangouts for example, a free and easy way of hosting face to face discussions with team members in different locations.

2. Offer the option of working remotely to attract the best minds

In the quest to become more productive regardless of your company’s location, remote working allows you to hire the skilled people you need to grow your business, whether they live in the next town or on the other side of the world. Hiring the best person for the job is no longer limited by geography, essentially multiplying the size of your recruitment pool.

Having the option of working remotely is also a selling point for your business and could promote employee retention as well as attracting new, bright minds who like the concept of more freedom around how and where they work.

This is a growing trend as well: remote workers has nearly tripled over an 8 year period to 2011.

cbi

3. Find yourself a freelancer

We’re seeing a shift from the traditional 9-5 roles to project-based work meaning freelancers are having a pretty good time of it at the moment. Forbes reports that in 2012 alone, the part-time and project-based workforce generated $200 million in earnings from Elance, an online marketplace connecting freelancers with employers. Their report suggests that if you’re in web design, you’ll have seen your earnings increase by a whopping 205% over the past year, due to the increasing popularity of hiring a freelancer.

If you need a specific job done and you don’t have the internal resource, freelancers can fit that gap. Hiring people with a specific expertise may save you time, money and resource. You get back to what you’re doing best; running your business, and you can let the experts do what they do best, on your terms.

There are a number of sites that can connect your business with freelancers, such as Elance, oDesk, Freelancer, People per hour and Fiverr, where tasks start at just $5.

There is also TaskRabbit in the US, who allow you to outsource household errands and skilled tasks. They say they’ll be opening in the UK this year too.

4. Offer flexibility to promote a happier and more productive workforce

Having a flexible attitude to working hours can also contribute to improved and increased output, a report by Lloyds Commercial Banking suggests. They found that flexible working had improved staff morale, which in turn helped them better meet customer demand. Almost half of the small businesses in the sample reported an increase in productivity too.

Flexibility could simply mean giving staff the option to avoid peak times; they decide between starting work earlier or later than the rest of the population to avoid the stressful commute, which has adverse effects on our health.

The Financial Times reported that the London Olympics was a great example of the success of flexible hours. This could very well lead to a happier and more productive workforce, which O2 witnessed during the Games when they promoted flexible working.

5. Part-time or shift work

Although this concept is not so much an unusual staffing solution, there are still reasons as to why part-time workers could be essential for your business growth. If a job was repetitious for example, it’s important to have people working in short, sharp bursts so concentration on the task in hand is maintained. Or, perhaps you only need staff for certain hours of the day, as you would find in the catering industry. It makes financial sense to employ people as and when you need them.

There’s also the benefit to the employee; shift work may work better for many people, who have other commitments with their family or their studies.

As an added benefit to the business, you’ll need less office space which will lower your overheads as you limit the headcount in your business at any given time.

6. Hold off from employing that extra person, could the solution be online?

Take for example, your bookkeeping. There are numerous accounting tools which you can find online that will not only simplify the job in hand, but may also save on hiring an extra person.

HR is an area where you may be able to get by with online solutions, such as My HR Toolkit, Tribe HR, and Bamboo HR to name a few, which will all help to streamline your HR admin without an extra pay-slip.

There are also a number of web-design software packages out there, so if you don’t have the internal resource for an extra employee or freelancer, you could start creating your web-page yourself by using any of the following tools: 350 pages, Moonfruit and Weebly.

With all of these online solutions it’s important to shop around and find the software package to suit your needs. The likelihood is, there’s definitely something out there for you and your business.

What other staffing solutions can you recommend?

Weekly Lending Review: week 35

Week 35: 26 August – 1 September 2013

In this week’s Weekly Lending Review we have a roundup of all of the latest news from the marketplace, as well as the pre-announced update to Minimum Bid Rates which take effect today.

Due to the August Bank Holiday we saw a slight drop in loan listings last week, which did include 3 loans for £150,000 and 3 loans for £100,000. The majority of loan requests were from businesses located in the South East, followed closely by those from the North West. The most common loan purpose was for expansion.

New loans

There were 41 new business loans listed last week and there are currently 31 auctions on the marketplace.

The total value of the new listed loans was £2,190,000; that’s an average of £53,415 per loan. The largest loan value was £150,000 and the smallest loan value was £5,000.

Business loans still available for bidding on for the next 3 days or more:

Award-winning digital agency is looking for a £40,000 loan

O2 mobile franchise needs a £150,000 loan

Web-hosters in Scotland require a £15,000 loan

Personalised-music product supplier is looking for a £40,000 loan

London-based manufactures are looking for an £80,000 loan

Somerset country house hotel needs a £60,000 loan

Weekly marketplace trends

These graphs show the most recent activity on the marketplace. The average gross yield graph is reported weekly and shows a rolling two week average. Number of loans, value of loans and secondary market are reported weekly. The dates on the graph should be read as ‘week beginning’, for example: 26-Aug represents the week of 26th August – 1st September..

Weekly average gross yield (2 weeks rolling)

yield

Number of listed loans per week

Number1

Listed loan value per week

Value1

Change to Minimum Bid Rates

Following our announcement on 19th August, the following Minimum Bid Rates will take effect today:

A+: 6% (no change)

A: 7.2% (+0.2%)

B: 8.2% (+0.2%)

C: 9.2% (+0.2%)

C-: 11.5% (no change)

News you should know

Saber Powersports borrowed £20k from 168 people in May and they operate a fleet of powerboats, on which they offer adventure experiences to the public. We went to visit them in Southampton where they took us out on one of their jet boats, having bought a new engine for it with their business loan. You can take a look at their business story in pictures here.

Today, news broke that Government’s Funding for Lending Scheme saw lending to small businesses fall by £900 million in July. Read CEO Samir Desai’s response to this on our blog.

Community Discussions

This week we’re talking about how the order of loan parts is generated on the secondary market. Have your say on our community forum.

Have you seen the new Funding Circle blog?  Be sure to subscribe to it with your email address to get regular updates: https://www.fundingcircle.com/blog/.

Loans defaulted last week

Middlesbrough engineers. Loan 2454

This business has been trading since 1988 but administrators were appointed last week following unforeseen cash-flow issues. The original loan amount was £300,000 and all 2,328 investors have been notified.

Enjoy lending, The Funding Circle team

 blog-banner-forum

 

You can read last week’s Weekly Lending Review here.

Picture story: peer-to-peer lending helped this Southampton business expand

How 168 people helped a powerboating company grow

Peer-to-peer lending helped a powerboat experience company widen their list of attractions.

Saber Powersports offer adventure experiences on their fleet of powerboats off the coast of Southampton. They needed to raise finance so they could purchase a new engine for one of their boats, helping the business to grow.

In May, they took out a business loan through Funding Circle which was funded by 168 people across the UK and the Government. This allowed them to renovate a boat so they could expand their fleet and offer new types of attractions for customers.

We went to Shamrock Quay to visit Simeon Penn, director at Saber Powersports and we were lucky enough to have a ride on the new boat and test out the new engine. It was certainly an adrenaline packed experience!

Here’s the story of their business and their experience of Funding Circle in Simeon’s words:

1

2

3

4

5

6

7

8

9

blog-banner-forum

Peer-to-peer lending to businesses filling the void in small business finance

Responding to today’s news that lending to small businesses fell by £900 million in July as part of the Government’s Funding for Lending scheme, Samir Desai, CEO and co-founder of Funding Circle said:

“At a time when the economy is showing signs of recovery it is imperative that finance can find its way through to the people who will do most to drive future growth and employment.”

“The peer-to-peer lending industry is stepping in where the banks are failing and filling the void by providing quick and accessible finance to small businesses. Thousands of people are choosing to cut out the middleman and lend directly to small businesses. Between June and July, hundreds of British businesses borrowed £14 million – up more than 20% on the previous month and 250% compared to the same period last year.”

“The Funding for Lending scheme may be failing businesses, but other Government-supported schemes, such as the Business Finance Partnership are proving to be very successful. Since April the Government has lent £10 million directly to more than 800 businesses through Funding Circle with owners obtaining their funds in a matter of days. This is yet another example that non-bank sources are better at ensuring finance flows to those that need it most.”

Since its launch in 2010, Funding Circle has helped more than 2,500 businesses to borrow in excess of £145 million. Almost 52,000 people have joined Funding Circle lending alongside the British Government, businesses, universities and a number of local councils.

Peer-to-peer lending continues to grow at an exceptional rate. More than £500 million has been lent through the three biggest peer-to-peer lenders, with recent predictions by Ernst & Young that the industry will grow to five times its size in the next three years.

 

News