A new tax relief for your lending. Weekly Lending Review

Week 49: 1 – 7 December 2014

Last week was a fantastic week for the peer-to-peer lending industry as the Chancellor announced a new tax relief for people who lend to businesses through marketplaces like Funding Circle.

New loans

There are currently 75 auctions on the marketplace which are all available for you to lend to.

The total value of the new listed loans was £10,543,420 averaging at £66,311 per loan. The largest loan value was £300,000 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: 01-Dec represents the week of 1st – 7th December.

Weekly average gross yield (2 weeks rolling)

yield

Number of listed loans per week

number

Listed loan value per week

value

New tax relief for your lending

Last week the Chancellor confirmed plans for the introduction of a new bad debt tax relief for individuals lending through marketplaces like Funding Circle. This means that losses incurred by lending through Funding Circle will be offset against income tax rather than capital gains tax. This relief is expected to be effective from April 2015.

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 for January at their current levels:

A+: 6%

A: 8%

B: 9%

C: 10.2%

C-: 12.2%

Join us on the forum

David, our VP of Engineering has answered some of your technical questions you had. Let us know if you have any more!

Loans defaulted last week

Fitness equipment retailer. Loan 4604

This Mid Glamorgan business has been trading since 2010 and is behind with their repayments. All affected investors have been notified.

Marketing consultancy. Loan 2747

This Kent business has been trading since 2000 and is in arrears with their repayments. A;; affected investors have been notified.

Packing suppliers. Loan 4096

This Salford business has been trading since 2003 and is in arrears with their loan. 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

 

Jack Pritchett

Senior Communications Manager