Highlights from our investor evening. Weekly Lending Review

Week 23: 2 – 8 June 2014

Last week we saw one of the largest loans come onto the marketplace; a loan for a rail business in Kent for £429,000, which is still available for bidding on. The south east was by far the most popular region for business loans, and the majority of loans were allocated to the B risk band.

New loans

There were 92 new business loans listed last week and there are currently 51 auctions on the marketplace.

The total value of the new listed loans was £5,781,660; that’s an average of £62,844 per loan. The largest loan value was £429,000 and the smallest loan value was £6,000.

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: 2-Jun represents the week of 2nd – 8th June.

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. A number of factors are considered when reviewing the rates, including general economic conditions and costs of alternative borrowing products. This month, we have decided to increase rates by 0.1% on C risk band and 0.2% on the C- risk band. The new rates will take effect on Tuesday 1st July. The new minimum bid rates for loan requests listed after 9am on 1st July are as follows:

A+: 6% (no change)

A: 8% (no change)

B: 9% (no change)

C: 10.1% (+ 0.1%)

C-: 11.9% (+ 0.2%)

Our first investor evening

Thank you to all who attended our first investor evening held at the end of May. As promised, here’s the first installment of the write up. Stay tuned this week for the rest!

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 the the £429,000 loan that’s on the marketplace.You can join the discussion on our community forum.

Loans defaulted last week

Vehicle products manufacturer. Loan ID 3243

This Keighley manufacturer has been trading since 2002 and is insolvent. The original loan amount was £100,000 and all 1,126 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