Refurbishing a restaurant thanks to 763 people. Weekly Lending Review

Week 21: 19 – 25 May 2014

Nearly £5 million was lent to businesses across the UK last week, including a property development loan in Kent, a soft drinks manufacturer in Bristol and an event solutions company in Cambridgeshire.

As well as this, we saw a further 73 businesses come onto the marketplace, which totalled £4.7 million of new lending opportunities.

New loans

There were 73 new business loans listed last week and there are currently 53 auctions on the marketplace.

The total value of the new listed loans was £4,654,180; that’s an average of £63,756 per loan. The largest loan value was £212,000 and the smallest loan value was £7,000.

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 of gross yields. This calculation assumes you reinvest your interest each month and therefore includes the compound interest you earn. Number of loans and value of loans are reported weekly. The dates on the graph should be read as ‘week beginning’, for example: 19-May represents the week of 19th – 25th May.

Weekly average gross yield (2 weeks rolling)

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Number of listed loans per week

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Listed loan value per week

value

Did you help refurbish a second restaurant?

763 people lent to The Exhibition Rooms so they could refurbish and open their second neighbourhood restaurant in South London. View their business story in pictures here.

Recommend a friend and share £80

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

Community Discussions

This week we’re talking about a London property development loan that was on the marketplace last week. You can join the discussion on our community forum.

Loans defaulted last week

Wholesale food distributor. Loan ID 1366

This Sussex business has been trading since 2002 and has fallen into arrears with repayments. The original loan amount was £45,000 and all 553 investors have been notified.

Furniture designer. Loan ID 904

This business has been trading since 2005 and we have received notice of a change in the director’s circumstances. The original loan amount was £40,000 and all 316 investors have been notified.

Our collections and recoveries team are working to recover the outstanding amounts for both of these loans.

Enjoy lending, The Funding Circle Team

* Terms & conditions apply.

Investment through Funding Circle involves lending to small and medium sized businesses, so your investment can go down as well as up. Remember, past returns are not necessarily a guide to future returns.

“763 people lent to us, which felt like tiny votes of confidence!”

Business owners David and Geoff share their Funding Circle experience.

After the success of The Exhibition Rooms restaurant in Crystal Palace, David and Geoff wanted to open a second neighbourhood restaurant, and needed a business loan to refurbish the premises.

In this picture story you’ll find out how they met, where they’ve come from, and how peer-to-peer lending has helped their business along the way.

You can also watch their business story in this short video.

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If you’ve got a UK business that’s been trading for at least 2 years and has a turnover of £100,000 or more, you can apply online at any time. We’ll always get back to you within 2 working days of receiving your complete application.

 

First development loan funds in less than 24 hours. Weekly Lending Review

Week 20: 12 – 18 May 2014

We were delighted to see our first formalised property development loan listed on the marketplace last week, which will be used to build eight 3 bedroom houses in Ramsgate, Kent. The loan for £400,500 funded in less than 24 hours and is the first tranche of funding needed to complete the project. Keep your eyes on the marketplace this week as we have another property development loan coming soon.

As well as this, we saw a further 87 businesses come onto the marketplace, which totalled over £5 million of new lending opportunities.

New loans

There were 88 new business loans listed last week and there are currently 53 auctions on the marketplace.

The total value of the new listed loans was £5,389,540; that’s an average of £61,245 per loan. The largest loan value was £400,500 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 of gross yields. This calculation assumes you reinvest your interest each month and therefore includes the compound interest you earn. Number of loans and value of loans are reported weekly. The dates on the graph should be read as ‘week beginning’, for example: 12-May represents the week of 12th – 18th May.

Weekly average gross yield (2 weeks rolling)

yield

Number of listed loans per week

number

Listed loan value per week

value

Did you help a small Scottish business with their marketing?

In our latest business story we’re with Don Dennis, in the Inner Hebrides. He runs The Flower Essence Repertoire who manufacture and export a range of flower essences. You can listen to his business story which includes a special message to those who lent to him in this short video.

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!

Community Discussions

This week we’re talking about the first development loan that was on the marketplace last week. You can join the discussion on our community forum.

Loans defaulted last week

Halal meat supplier. Loan ID 2048

This Oxford business has been trading since 2006 and has fallen into arrears with repayments. The original loan amount was £50,000 and all 620 investors have been notified.

Industrial cleaning company. Loan ID 2603

This Ipswich business has been trading since 2006 and we have received notice of liquidation. The original loan amount was £30,000 and all 363 investors have been notified.

Training providers. Loan ID 1373

This business employs and trains domestic care workers and has been trading since 2001. They have fallen behind with their repayments. The original loan amount was £40,000 and all 557 investors have been notified.

Garden furniture wholesaler. Loan ID 974

This Newcastle business has been trading since 2008 and has failed to maintain timely, full repayments. The original loan amount was £35,000 and all 278 investors have been notified.

Our collections and recoveries team are working to recover the outstanding amounts for all of these loans.

Enjoy lending, The Funding Circle Team

* Terms & conditions apply.

 

Investment through Funding Circle involves lending to small and medium sized businesses, so your investment can go down as well as up. Remember, past returns are not necessarily a guide to future returns.

Business referrals, the largest peer-to-peer loan & the rest of April’s industry news

Week 19: 5-11 May 2014

It was the first short week of May which brought a further 64 businesses to the marketplace, totalling over £3.6 million of lending opportunities. The most popular region was the South East of England, with leisure & hospitality being the most common sector.

New loans

There were 64 new business loans listed last week and there are currently 50 auctions on the marketplace.

The total value of the new listed loans was £3,615,080; that’s an average of £56,486 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 of gross yields. This calculation assumes you reinvest your interest each month and therefore includes the compound interest you earn. Number of loans and value of loans are reported weekly. The dates on the graph should be read as ‘week beginning’, for example: 5-May represents the week of 5th – 11th May.

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

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 June will remain at May’s levels, as the majority of loans have been clearing above these rates: 6%, 8%, 9%, 10% and 11.7% for the A+ to C- risk bands.

More loan terms coming to the marketplace

Loan terms can now be any number of months between 3 and 60 months, and will be clearly shown on the loan request page. Watch out for a loan this week which will be listed with an 18 month loan term!

April’s industry news

Included in last month’s news roundup was the largest peer-to-peer loan and possible bank referrals to alternative finance providers.

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!

Community Discussions

This week we’re talking about the commercial mortgage that was on the marketplace last week. You can join the discussion on our community forum.

Loans defaulted last week

Harrogate Jewellers. Loan ID 1318

This business has been trading since 1986 and has fallen into arrears with repayments. The original loan amount was £100,000 and all 899 investors have been notified.

Construction firm. Loan ID 1420

This business has been trading since 2001 and has fallen behind with their repayments. The original loan amount was £25,000 and all 256 investors have been notified.

Management training company. Loan ID 322

This Derby business has been trading since 2004 and has failed to maintain full repayments. The original loan amount was £50,000 and all 450 investors have been notified.

Dorset bakery. Loan ID 2617

This organic bakery has been trading since 2009 and has ceased trading. The original loan amount was £20,000 and all 188 investors have been notified.

Our collections and recoveries team are working to recover the outstanding amounts for all of these loans.

Enjoy lending, The Funding Circle Team

* Terms & conditions apply.

Investment through Funding Circle involves lending to small and medium sized businesses, so your investment can go down as well as up. Remember, past returns are not necessarily a guide to future returns.

 

Meet Don: our latest business owner who has benefitted from your lending

We’re in Scotland for our latest case study video, telling the story of how Funding Circle investors helped to make a difference to another UK business.

The Flower Essence Repertoire is based on the picturesque Isle of Gigha, in the Inner Hebrides. The business manufactures a range of flower essences, including orchid essences from orchids grown in their greenhouse, and they export them worldwide.

In December, they took out a peer-to-peer business loan through Funding Circle which was funded by 266 people and organisations across the UK.

In this short film you’ll meet Don Dennis, director and founder of the Flower Essence Repertoire, and he’ll explain to you why he started the company. There’s also a special message to all of the people who lent him the money, which will be used to purchase a range of materials to make and bottle the essences.

Watch the video here:

Business referrals to peer-to-peer lenders. April industry news

A small business guide to alternative funding

Banks seem to be closing their doors to small and startup businesses, but that shouldn’t deter entrepreneurs from seeking funding. In fact, there are more funding options open to businesses than ever before as new services have emerged to fill the gap. This article discusses the various options including peer-to-peer lending, crowdfunding and angel investing, and suggests businesses looking for finance should take a look at alternativebusinessfunding.co.uk.

Saber

Power up your small business with hi-tech finance

Did you lend to powerboat experience company, Saber Powersports last year? This month they featured on the BBC, having taken two Funding Circle loans to fuel their growth. The article quotes speed as the key advantage, with businesses typically accessing the finance they need to grow and expand within two weeks.

Would starting your own business put your family savings or home at risk? How to protect yourself from your start-up

More advice for businesses looking to access finance. This is Money recommends businesses think about turning to peer-to-peer lending due to the flexibility borrowers can have when it comes to borrowing against a business, rather than personal assets.

Largest P2P loan to fund urban regeneration scheme

April saw the largest loan ever listed by a peer-to-peer lending platform. A British urban regeneration scheme landed £8.3m funding from Wellesley & Co. The bridging loan, which is more than twice the size of the previous largest amount raised by a peer-to-peer lender, is backed by a range of 27 properties inside the M25 as collateral. This month we also extended the types of loan we offer to include more small businesses who develop or invest in property.

High Street banks could be obliged to name alternative lenders for small businesses

Banks could be required to refer small businesses to alternative funding providers under proposals being considered by the government. The consultation was announced in the Budget last month and closed on 25th April. We believe that a referral needs to take place much earlier than it currently does. Industry data shows that 50% of businesses exploring finance with their bank do not reach the formal application stage. Signposting to alternatives therefore needs to start much sooner than the formal rejection stage. The Mail on Sunday also covered the story.

£270m lent & £5m of new lending opportunities available to you

Week 18: 28 – 4 May 2014

We’ve just passed the £270 million lent milestone, with £18 million of lending coming from April alone. Over £5 million worth of new lending opportunities were listed on the marketplace last week, including a Farnham bakery. The Midlands saw the most businesses and the majority were in the property and construction sector.

New loans

There were 79 new business loans listed last week and there are currently 44 auctions on the marketplace.

The total value of the new listed loans was £5,035,840; that’s an average of £63,745 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 of gross yields. This calculation assumes you reinvest your interest each month and therefore includes the compound interest you earn. Number of loans and value of loans are reported weekly. The dates on the graph should be read as ‘week beginning’, for example: 28-Apr represents the week of 28th April – 4th May.

Weekly average gross yield (2 weeks rolling)

yield

Number of listed loans per week

number

Listed loan value per week

value

Recommend a friend and share £80

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

Community Discussions

This week we’re talking about the commercial mortgage that is currently on the marketplace. You can join the discussion on our community forum.

Loans defaulted last week

Sports shop. Loan ID 2070

This Newcastle business has been trading for 5 years and has fallen into arrears with repayments. The original loan amount was £30,000 and all 333 investors have been notified.

Recycling business. Loan ID 3051

This business has been trading for five years and has fallen behind with their repayments. The original loan amount was £25,000 and all 294 investors have been notified.

Alcohol retailer. Loan ID 5034

This Hartlepool retailer has been trading for eight years. The original loan amount was £90,000 and all 1,085 investors have been notified.

Our collections and recoveries team are working to recover the outstanding amounts for all of these loans.

Enjoy lending, The Funding Circle Team

 

* Terms & conditions apply.

Investment through Funding Circle involves lending to small and medium sized businesses, so your investment can go down as well as up. Remember, past returns are not necessarily a guide to future returns.