Update to minimum bid rates. Weekly Lending Review: week 50

Week 50: 9 – 15 December 2013

We’ve got 86 new lending opportunities and an update to minimum bid rates all in this week’s Weekly lending Review.

Last week was the second largest week for the number of businesses looking for funding and the also the second largest week for the amount lent, with £3.7 million making its way to business across the UK.

New loans

There were 86 new business loans listed last week and there are currently 70 auctions on the marketplace.

The total value of the new listed loans was £4,819,220; that’s an average of £56,037 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: 9-Dec represents the week of 9th – 15th December.

Weekly average gross yield (2 weeks rolling)

yield

Number of listed loans per week

number

Listed loan value per week

value

Update to minimum bid rates

We review the minimum bid rates in the middle of every month to decide whether they should be changed or kept the same. This month, the decision has been made to increase rates by 0.2% on the A, B and C risk bands. The new rates will come into effect for loan requests listed after 9am on Thursday 2nd January 2014. The new rates are as follows:

A+: 6% (no change)

A: 7.8% (+0.2%)

B: 8.8% (+ 0.2%)

C: 9.8% (+ 0.2%)

C-: 11.5% (no change)

Community Discussions

This week we’re talking about tax statements. You can join the discussion on our community forum.

Loans defaulted last week

Birmingham Engineers. Loan ID 1544

This business has been trading since 1974 and has fallen behind with repayments. The original loan amount was £50,000 and all 541 investors have been notified.

Enjoy lending, The Funding Circle Team

 

Jack Pritchett

Senior Communications Manager

 

3 thoughts on “Update to minimum bid rates. Weekly Lending Review: week 50

    • A number of factors are considered when reviewing the rates, including general economic conditions and costs of alternative borrowing products.

  1. I too would love to see a sentence or two on the reasoning behind rate changes. At the moment they are tending to head upwards and nobody will have an issue with that, but if/when they come back down, I suspect the reasons might be of more interest. I wouldn’t want chapter and verse and overly detailed stats., but a few words would be beneficial, thanks.

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