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.
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:
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)
Number of listed loans per week
Listed loan value per week
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.
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
You can read last week’s Weekly Lending Review here.