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.

 

Jack Pritchett

Senior Communications Manager