Updates to the Terms & Conditions and Minimum Bid Rates

Weekly Lending Review 

Week 7: 10 – 16 February 2014

Last week, a record £5.4 million made its way to businesses across the UK thanks to your lending. We also saw close to 100 new business loans available for you to lend to, totalling £5.6 million.

The average gross yield for investors has been increasing steadily over the past month across all risk bands, with rates as high as 15%, 14.8% and 14.4% accepted into loans last week, in the C-, B and C risk bands respectively.*

New loans

There were 96 new business loans listed last week and there are currently 86 auctions on the marketplace.

The total value of the new listed loans was £5,632,880; that’s an average of £58,676 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: 10-Feb represents the week of 10th – 16th February.

Weekly average gross yield (2 weeks rolling)

yield

Number of listed loans per week

number

Listed loan value per week

value

Updates to the Terms & Conditions

We’ve made some change to our terms & conditions which will reflect (1) improvements to our debt collection processes, (2) more lending and borrowing opportunities, and (3) necessary changes for FCA regulation later this year. You can read about the changes in more detail on our blog. It’s important to have a look, as by continuing to use the Funding Circle marketplace you agree to be bound by these revised terms.

No change 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. Minimum bid rates for March will remain at February levels, as the majority of loans have been clearing above these rates: 6%, 7.9%, 8.9%, 9.9% and 11.6% for the A+ to C- risk bands.

Recommend a friend and share £80

If you recommend a friend to Funding Circle and they lend at least £1,000 to our great British businesses, you could each have £40 cashback** paid into your Funding Circle accounts!

Unsure how to get started?

Take 5 minutes to read through our blog which explains how to start lending to businesses through Funding Circle.

Community Discussions

This week we’re talking about updates to the T&Cs. You can join the discussion on our community forum.

Loans defaulted last week

Berkshire restaurant. Loan ID 697

This business operates a Michelin star restaurant and has been trading since 2004.The original loan amount was £100,000 and all 727 investors have been notified.

Fish & chip restaurant. Loan ID 135

This Norfolk business has been trading since 2006 and suffered a fire at their premises last year. The original loan amount was £30,000 and all 308 investors have been notified.

Our insolvency team are working to recover the outstanding amounts for all of these loans.

Enjoy lending, The Funding Circle Team

* Based on all successful bids into loans accepted between 10/02/2014 and 16/02/2014. For further information please see our statistics page.

** Terms & conditions apply.

 

Jack Pritchett

Senior Communications Manager