A record £11 million of loans. Weekly Lending Review

It was a record-breaking week at Funding Circle as close to 180 businesses were listed on the marketplace, with a total loan value of over £11 million. You helped lend £9.3 million to businesses in the last week alone, so thank you all for your continued support!

The majority of businesses listed on the marketplace last week were located in the North West of England, and the most popular reason for needing funding was expansion.

New loans

There were 179 new business loans listed last week and there are currently 64 auctions on the marketplace, available for you to lend to.

The total value of the new listed loans was £11,086,300; averaging at £65,331 per loan. The largest loan value was £450,000 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: 17-Nov represents the week of 17th – 23rd November.

Weekly average gross yield (2 weeks rolling)

yield

Number of listed loans per week

number

Listed loan value per week

value

1% cashback ends this week!

There are still loans on the marketplace which have 1% and 2% cashback available on lending to them, so place your bids before it’s too late! Remember, by lending to businesses your capital is at risk.  Terms and conditions apply.

Have your technical questions answered

We’ve started a thread on our forum to answer any technical questions you have. David, our VP of Engineering will be on hand once a month answer them. Post them before Tuesday 2nd December for the first session.

Loans defaulted last week

Vehicle hire company. Loan 5702

This Rotherham business has been trading since 2004 and is experiencing financial difficulties. The original loan amount was £156,260 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

 

Cashback is coming to an end! Weekly Lending Review

Week 46: 10 – 16 November 2014

The current estimated return for loans on the marketplace is 7.6%*, and with cashback** coming to an end this week, make sure you take advantage of our promotion before it’s too late! Remember, your actual return may be higher or lower as your capital is at risk.

The majority of businesses who were listed on the marketplace last week were located in the South East of England, with expansion cited as the most popular reason for needing funding.

New loans

There were 158 new business loans listed last week and there are currently 62 auctions on the marketplace, available for you to lend to.

The total value of the new listed loans was £10,322,380; averaging at £65,331 per loan. The largest loan value was £450,000 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: 10-Nov represents the week of 10th – 16th November.

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

Cashback is ending!

Cashback on certain loans may be ending this week, but you still have time to recommend friends to Funding Circle. If your friend lends £1,000 to businesses by 31/12/2014, then you both can have £50 cashback credited to your Funding Circle accounts. Terms and conditions apply.

We’re helping businesses outside of the UK too

Our team over in the US visited a business who took out a loan through Funding Circle. You can find out how Funding Circle in the US is helping more small businesses access finance in this short blog.

Loans defaulted last week

Building company. Loan 2800

This Cheshire business has been trading since 2006 and is behind with their repayments. The original loan amount was £75,000 and all affected investors have been notified.

Ventilation equipment manufacturer. Loan 3285

This Berkshire business was incorporated in 1982 and is likely to enter into a Company Voluntary Arrangement. The original loan amount was £50,000 and all affected investors have been notified.

Entertainment provider. Loan 2996

This Brighton business has been trading since 1998 and is behind with their repayments. The original loan amount was for £99,500 and all affected investors have been notified.

Motor vehicle retailer. Loan 268

This Tyne and Wear business has been trading since 1996 and the business has ceased trading. The original loan amount was for £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

 

*The current estimated return is an estimate of the annual return after fees and bad debts that investors could earn from lending money to businesses seeking loans today. It is calculated by taking the gross interest rate less fees and estimated bad debts that will occur in the future for each of the last 100 loans accepted on the marketplace. The average return is compounded and before tax. The return is updated daily. See full calculation here.  Rate correct as of 18/11/2014.

** Terms and conditions apply

We’re helping businesses outside of the UK too

Since launching Funding Circle in the US last October, we’ve been able to help many more businesses access finance; with the total combined lending to small businesses across the UK and US, recently surpassing $700 million.

One of these small businesses is ExpressCare Pediatrics, a pediatrics centre located in South Carolina. Our team in San Francisco went to visit them, like we regularly do here in the UK, and we wanted to share their business story with you:

From providing vaccinations to new babies to helping a child recover from the flu, the team at ExpressCare Pediatrics care deeply about improving the health and wellness of children in Greenville, South Carolina.

To meet the increased demand for pediatric healthcare in the local community, owner Dr Tonya Knox-Frazier took out a business loan through Funding Circle to grow her team of doctors and open a children’s mental health centre.

In this small business spotlight video, you’ll meet Dr Knox-Frazier and the rest of the ExpressCare team and learn how their Funding Circle business loan helped not only her business, but also the patients she serves.

We hope you enjoy it!

A month long consultation into peer-to-peer ISAs. Weekly Lending Review

Week 45: 3 – 9 November 2014

The current estimated return for loans on the marketplace is 7.6%*, and with cashback** available for introducing friends to Funding Circle, it’s a great time to be lending to businesses! Remember, your actual return may be higher or lower as your capital is at risk.

Last week, the South East of England saw the most number of businesses on the marketplace, with expansion being the most popular reason for needing funding.

New loans

There were 139 new business loans listed last week and there are currently 86 auctions on the marketplace, available for you to lend to.

The total value of the new listed loans was £9,493,440; averaging at £68,298 per loan. The largest loan value was £300,000 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: 3-Nov represents the week of 3rd – 9th November.

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 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. This month, we have decided to keep minimum bid rates at their current levels:

A+: 6%

A: 8%

B: 9%

C: 10.2%

C-: 12.2%

Government to consult on peer-to-peer ISAs

Included in October’s peer-to-peer industry news roundup we have a month long consultation into peer-to-peer ISAs, 2 new partnerships with Funding Circle and reports of another fall in bank lending to businesses. Funding Circle’s new Innovative Finance ISA can be found here

Loans defaulted last week

Recruitment company. Loan 4203

This Lincolnshire business has been trading since 2010 and is behind with their repayments. The original loan amount was £45,000 and all affected investors have been notified.

Bar operator. Loan 894

This Glasgow business was incorporated in 1991 and is in arrears with their repayments. The original loan amount was £25,000 and all affected investors have been notified.

Glasgow pub. Loan 4652

This business has been trading since 2004 and the business is now in administration. The original loan amount was for £90,000 and all affected investors have been notified.

Window manufacturer. Loan 1030

This Hampshire business has been trading since 1988 and the business is now in liquidation. The original loan amount was for £35,000 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

 

*The current estimated return is an estimate of the annual return after fees and bad debts that investors could earn from lending money to businesses seeking loans today. It is calculated by taking the gross interest rate less fees and estimated bad debts that will occur in the future for each of the last 100 loans accepted on the marketplace. The average return is compounded and before tax. The return is updated daily. See full calculation here.  Rate correct as of 11/11/2014.

** Terms and conditions apply

 

Government to consult on new P2P ISA. October industry news

Newspapers - Copy

Bank lending to small businesses falls by £400m

Small firms are still struggling to access cash from the banks, according to the latest Trends in Lending report, out last month. The Bank of England report, which consolidates all available lending data to paint a fuller picture of the lending landscape, showed that net lending to small and medium-sized enterprises through the Government’s Funding for Lending scheme was down in the second quarter of this year, contracting by £400m.

The peer-to-peer sector is rapidly coming of age

With news that bank lending to small businesses continues to fall, Anthony Hilton hails the peer-to-peer lending industry as an increasingly important part of the small business lending market. Given Market Invoice has now lent more than £250 million to small businesses who need help with invoice finance, and Funding Circle is one of the largest sources of finance to small businesses in the UK in just four years, we would tend to agree.

Government to consult on new Peer-to-Peer lending ISA

The Government announced a month long consultation looking into how peer-to-peer lending will work for ISAs. Increasingly there are calls for a third P2P ISA which sits separately to a cash ISA and a stocks and shares ISA. We’re working on our response at the moment and will post a blog soon with details of what we are proposing, as it would be helpful to get your feedback. This is Money and the Evening Standard also covered the news, and you can watch co-founder James Meekings responding to the news on CNBC here.

London’s tech firms raise record $1bn of venture capital investment

The technology scene is hotting up in London with news of three major exits in 2014 to date. Financial technology companies are playing a big role too, with our fundraising round in July for $65 million being the largest in Q3. CNBC, Wall Street Journal and the Financial Times also covered the news.

Councils give entrepreneurs £7m leg-up by investing in small firms through pioneer Funding Circle

Rushcliffe Borough Council became the tenth UK local authority to sign up to lend to small businesses within their region. The project, established to stimulate local economic growth and employment through improved access to business finance, is already responsible for more than £7 million of funding from other councils across the country, the government-backed British Business Bank and investors.

News

Wim opens his doors to Richard, who lent to his business last month

Vroom Vroom! Richard meets a business he lent to

Wim Wellinghoff, a self-confessed racing car lover, welcomed us to his warehouse where he stocks over 20,000 model racing cars. His business, RacingModels.com, is situated near the Silverstone Grand Prix circuit, and is the leading worldwide supplier of motorsport model cars for collectors.

We visited Wim, who has been in the automotive business his whole life, to see how he was getting on after taking out a £130,000 loan through Funding Circle. Over 1,300 people lent to RacingModels.com, and Richard was one of them.

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Richard: “It’s great to see your money actually doing something… Meeting Wim, and seeing his passion and extensive knowledge about the whole business, is amazing!”

In this short video you’ll hear what Richard and Wim enjoyed about their different Funding Circle experiences.

If you’re interested in taking out a loan for your business like Wim did, you can apply online at a time that suits you and you’ll back from our team within 2 working days.

If, like Richard, you’d like to lend to businesses through Funding Circle, you can join in minutes and explore how it works for free. Remember, by lending to businesses your capital is at risk.

 

Why You Should Outsource Your Marketing: 3 Benefits

Nobody knows your organisation, product or service better than you. This is one of the reasons why outsourcing your marketing can be such a tricky decision to make.

Why do businesses rely on third party marketing support? According to surveys from inbound marketing experts HubSpot, around 32% of business owners outsource because they don’t have time to learn about marketing and apply it to their campaigns.

So should you outsource? Will it add value? Here are the top three benefits of outsourcing your marketing:

BENEFIT 1 – Time and cost savings

When you outsource you get access to top level marketing experts when you need them, plus you’ll only pay for the services you use for as little or long as you require them.

You don’t have to pay for in-house marketers in between projects and you avoid the costs associated with employing staff, such as National Insurance, recruitment fees, sick pay and holidays. You’ll also be free to focus on the other areas of your business, and your marketing won’t get pushed to the back burner regardless of how busy you are.

For example, Neil Wadsworth, Managing Director of financial advisory firm Anderson Locke, was able to focus on adding value to his business after eliminating the opportunity cost of doing his own marketing. The end result: an £800 lead generation campaign that generated £40,000 of business. (Want to find out more? Read the full case study ‘I generated £40,000 worth of business with a lead generation campaign.’)

BENEFIT 2 – Easy access to all the marketing skills you need

You get better value from outsourcing your marketing to an agency because it’s simply not possible for one in-house person to do everything an agency can do. The fact is that you’re not going to find a single employee who’s an expert in direct marketing, social media, PR, graphic design, strategy and copywriting.

Expecting one person to deliver on all counts is an unreasonable ask, and as a result something always falls by the wayside, opportunities included. The beauty of appointing an integrated agency is that you get experts in everything, so you can tap into what you need when you need it.

Outsourcing your marketing also frees up everyone else in your business to focus on the areas where they add the most value. The fact is that marketing is a different skill set to, for example, manufacturing, quality assurance or software development. Just as you wouldn’t expect a chartered engineer to do the job of the finance director, you can’t expect a general manager, sales director or even managing director to be an expert in marketing.

BENEFIT 3 – Fresh ideas and an objective point of view

When your head’s immersed in your business it’s easy to do things a certain way because ‘that’s the way you’ve always done it.’ This leads to missed opportunities.

For example, Midlands manufacturer BSC Diecasting & Finishing, didn’t think that customers used search engines as part of the purchasing process. Analytical tools revealed that online research was actually very important in procurement, and BSC was able to launch a new website optimised for search. This new site put BSC ahead of the competition, with the new approach generating £2.7million in leads in the first week. (Read the full story, ‘How a good rebrand helped generate £2.7m of leads.’)

Thus, because an agency combines an objective perspective with knowledge of the latest marketing innovations and techniques, you get shrewd advice on what will give you the most value.

 

By Sarah Groves, Cognition Agency

You read more marketing tips by downloading any of Cognition’s free eguides.

Cognition is a full-service marketing agency and a Funding Circle borrower. It’s known for its commercial approach, linking marketing activity to revenue and growth.

If you’re interested in taking out a Funding Circle business loan, you can apply online at anytime.

 

New cashback promotion has started! Weekly Lending Review

Week 44: 27 October – 2 November 2014

The current estimated return for loans on the marketplace is 7.7%*, and with cashback** applied to certain loans, it’s a great time to be lending at Funding Circle! Remember, your actual return may be higher or lower as your capital is at risk.

New loans

There were 101 new business loans listed last week and there are currently 64 auctions on the marketplace, available for you to lend to.

The total value of the new listed loans was £7,504,940; averaging at £74,306 per loan. The largest loan value was £360,000 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: 27-Oct represents the week of 27th October – 2nd November.

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

Cashback has started!

We have just launched a new cashback promotion for a limited time on certain loans listed on the marketplace. Look our for loans which have either 1% or 2% cashback** in their loan title, and if your bids are successful, you’ll have cashback on your lending credited to your Funding Circle account.

Changes to the summary page

We’ve made a small change to how your accrued interest is shown on your summary page. It is now a standalone figure and is not included in your Funding Circle total, or the pie chart, anymore.

Loans defaulted last week

Hotel in West Yorkshire. Loan 1776 and 2881

This business was incorporated in 2004 and is behind with their repayments. The original loan amounts were £95,000 and £20,000 and all affected investors have been notified.

Consultancy and training provider. Loan 1167 and 2360

This Worcestershire business was incorporated in 2001 and is in arrears with their repayments. The original loan amounts were £35,000 and £30,000 and all affected investors have been notified.

Lighting manufacturer. Loan 3041

This West Yorkshire business was incorporated in 2003 and the business is now in administration. The original loan amount was for £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

 

*The current estimated return is an estimate of the annual return after fees and bad debts that investors could earn from lending money to businesses seeking loans today. It is calculated by taking the gross interest rate less fees and estimated bad debts that will occur in the future for each of the last 100 loans accepted on the marketplace. The average return is compounded and before tax. The return is updated daily. See full calculation here.  Rate correct as of 3/11/2014.

** Terms and conditions apply