Record £6.4m lent to coincide with our 4th birthday. Weekly Lending Review

Week 33: 11 – 17 August 2014

Last week, we welcomed over 100 new businesses to the marketplace; the majority of which were allocated an A risk band.

Investors had bids of up to 15% accepted on loans in the C risk band, and bids of up to 14.1% in loans in the A+ risk band*. We also saw a record £6.4 million lent to businesses across the UK, thanks to all of your lending.

New loans

There were 102 new business loans listed last week and there are currently 61 auctions on the marketplace.

The total value of the new listed loans was £6,836,040; that’s an average of £67,020 per loan. The largest loan value was £460,000 and the smallest loan value was £6,260.

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: 11-Aug represents the week of 11th – 17th August.

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

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 0.2% on the C- risk band. These changes will take effect on Monday 1st September. The new minimum bid rates for loan requests listed after 9am on 1st September are as follows:

A+: 6% (no change)

A: 8% (no change)

B: 9% (no change)

C: 10.2% (no change)

C-: 12.2% (+ 0.2%)

Happy Birthday Funding Circle!

It was our 4th birthday last week and to celebrate, we published an infographic which tracks the rise of peer-to-peer business lending up to this year, when the industry became formally regulated.

2 weeks left to share £100 with a friend!

If you recommend a friend to Funding Circle and they lend at least £1,000 to businesses by the end of the offer period, you could each have £50 cashback** paid into your Funding Circle accounts. There’s only 2 weeks to go to recommend a friend to Funding Circle, so make sure you don’t miss out.

Loans defaulted last week

Radiator retailer. Loan ID 2125

This Northill business has been trading since 1997 and is in liquidation. The original loan amount was £100,000 and all affected investors have been notified.

Heating maintenance business. Loan ID 2721

This Widnes business has been trading since 1995 and is in arrears with repayments. The original loan amount was £30,000 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

 

* Based on all successful bids in loans accepted on the marketplace from 11th August – 17th August.

**Terms and conditions apply

 

Jack Pritchett

Senior Communications Manager

 

5 thoughts on “Record £6.4m lent to coincide with our 4th birthday. Weekly Lending Review

  1. “Investors had bids of up to 15% accepted on loans in the C risk band, and bids of up to 14.1% in loans in the A+ risk band*. ” I’m sorry to have to say this but this statement is highly dubious. I bid on every loan with an A+ rating, mostly at the end of auctions, and I can say that 14.1% sounds to me like complete fiction. Furthermore, all the A+ large loans (>100k) for which I made a bid in the week from 11th August – 17th August were subsequently refused by the borrower, presumably because the rates were too high. Please could you tell me which A+ loan had a bid accepted for 14.1%? And why were all the large loans subsequently refused by the borrower?

    • Hi Thomas, thanks for your note. On 11th August, loan 7301 accepted
      their loan offer and the highest accepted bid in this loan was 14.1%.
      You’ll be able to view this in the loanbook which is available to
      download on the statistics page. If a business declines their loan
      offer, we try to ensure we write a comment to explain why, as we
      understand it can be frustrating for investors when their bids are not
      accepted. Is there a particular loan ID you’re interested in? I’ll be
      happy to ask the team about a specific loan for you. Thanks, Becky.

      • Yes, I’d like to tell you which loan ID it was. Could you tell me how I can see the bids I have placed which were part of a loan offer which was refused?

        • Hi Thomas, you can filter the bids on your summary page, for loan requests that were rejected by the business. Hope this helps.

  2. Hi Thomas, thanks for your note. On 11th August, loan 7301 accepted their loan offer and the highest accepted bid in this loan was 14.1%. You’ll be able to view this in the loanbook which is available to download on the statistics page. If a business declines their loan offer, we try to ensure we write a comment to explain why, as we understand it can be frustrating for investors when their bids are not accepted. Is there a particular loan ID you’re interested in? I’ll be happy to ask the team about a specific loan for you. Thanks, Becky

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