Update to minimum bid rates. Weekly Lending Review: week 3
Week 3: 13 – 19 January 2014
In this week’s lending review we’ve got a further 72 new lending opportunities and an update to minimum bid rates, which will take effect on Monday 3rd February.
The majority of new loans were allocated to the A and B risk bands, and expansion was the most popular reason for needing funding.
There were 72 new business loans listed last week and there are currently 55 auctions on the marketplace.
The total value of the new listed loans was £4,012,800; that’s an average of £55,733 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:
- Waste management company needs a £150,000 loan
- Decorating business is looking for a £20,000 loan
- Scaffolding contractor requires a £60,000 loan
- Internet marketing business needs an £85,000 loan
- Scottish property company is looking for a £50,000 loan
- Business technology developer requires 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: 13-Jan represents the week of 13th – 19th January.
Weekly average gross yield (2 weeks rolling)
Number of listed loans per week
Listed loan value per week
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. A number of factors are considered when reviewing the rates, including general economic conditions and costs of alternative borrowing products.
This month, the decision has been made to increase rates by 0.1% on the A, B, C and C- risk bands. The new rates will come into effect for loan requests listed after 9am on Monday 3rd February 2014. The new rates are as follows:
A+: 6% (no change)
A: 7.9% (+0.1%)
B: 8.9% (+ 0.1%)
C: 9.9% (+ 0.1%)
C-: 11.6% (+ 0.1%)
Loans defaulted last week
IT services provider. Loan ID 3696
This Bristol business has been trading since 1998 but has not kept up with repayments. The original loan amount was £100,000 which has been credited back to the accounts of all 1,185 investors affected. For further details on this, please read the announcement on the forum.
Enjoy lending, The Funding Circle Team