Helping more businesses and £6m of new loans. Weekly Lending Review

Week 28: 7 – 13 July 2014

It was a great week for listings as 109 new lending opportunities became available to you, with the total value of over £6 million. Of the loans that were listed last week, manufacturing was the most common sector and working capital was the most popular reason for funding.

New loans

There were 109 new business loans listed last week and there are currently 84 auctions on the marketplace.

The total value of the new listed loans was £6,171,580; that’s an average of £56,620 per loan. The largest loan value was £370,000 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: 7-Jul represents the week of 7th – 13th July.

Weekly average gross yield (2 weeks rolling)

yield

Number of listed loans per week

number

Listed loan value per week

value

Summer special: share £100 with a friend!

If you recommend a friend to Funding Circle and they lend at least £1,000 to businesses, you could each have £50 cashback* paid into your Funding Circle accounts.

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 both the C and C- risk bands. The new rates will take effect on Friday 1st August. The new minimum bid rates for loan requests listed after 9am on 1st August are as follows:

  • A+: 6% (no change)
  • A: 8% (no change)
  • B: 9% (no change)
  • C: 10.2% (+ 0.1%)
  • C-: 12% (+ 0.1%)

Planned business advisory service for our borrowers

We’re planning to launch a free advisory service for Funding Circle borrowers, to help them make the most out of their Funding Circle loan. This will include a 60-90 minute session from a Funding Circle account manager and an independent business advisor of their choice, to look deeper into any business need they’d like to focus on.

Assessing more businesses on a case by case basis

As part of our ongoing work to improve and innovate the service we provide to both borrowers and investors, we are starting to review loan applications where the business has a turnover between £50k and £100k.

Loans defaulted last week

Film equipment provider. Loan ID 2009

This Guildford business has been trading since 2005 and entered administration last month. The original loan amount was £100,000 and all affected 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 and conditions apply.

 

Jack Pritchett

Senior Communications Manager