Improving returns at Funding Circle. Weekly Lending Review

Week 7: 9 – 15 February 2015

You and more than 37,000 people helped lend nearly £10 million to businesses across the UK last week.

Of the new loans that were listed on the marketplace, expansion was the most popular reason for needing funding and manufacturing was the most common sector.

New loans available to you

There are currently 62 loan requests on the marketplace which are all available for you to lend to.

The total value of new Funding Circle loans was £10,209,620, averaging at £63,414 per loan. The largest loan value was £600,000 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, value of loans and amount lent are reported weekly. The dates on the graph should be read as ‘week beginning’, for example: 9-Feb represents the week of 9th – 15th February 2015.

Weekly average gross yield (2 weeks rolling)

yield

Number of new loans per week

number

New loan value per week

value

Amount lent to businesses per week

lent

What are whole loans?

Last year we announced the introduction of whole loans to the marketplace. Whole loans are loans which are purchased in full by institutional investors lending to businesses. This means individual loan parts cannot be purchased or sold, as is the case with the ‘partial loans’ that you see and lend to on the marketplace. The graph above shows the split of the total amount lent to businesses by whole and partial loans, and we’ll continue to show this breakdown on a weekly basis.

Loan parts available to buy from other investors

2ndry

Improving investor returns at Funding Circle

Since the Funding Circle marketplace first launched, estimated annual returns have increased from 5.7% in 2011 to 7.1% in 2014. In this edition of our data series, we examine how interest rates have changed over time, what has caused these changes and why investors are now earning more.

News you should know

Last week we were delighted to win a CICM award at the British Credit Awards held in London. We’re proud to be named as the Commercial Collections Team of the Year 2015.

Loans defaulted last week

Education provider. Loan 7712. Risk band B

This London business was established in 2001 and is in arrears with their repayments. All affected investors have been notified.

Training provider. Loan 4528. Risk band C

This Northamptonshire business has been trading since 2007 and is insolvent. All affected investors have been notified.

Drainage solutions provider. Loan 1464. Risk band C

This Northamptonshire business has ceased trading. All affected investors have been notified.

Demolition company. Loan 2559 Risk band B

This North Lanarkshire business has been trading since 1958 and is in arrears with their repayments. 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

 

2 thoughts on “Improving returns at Funding Circle. Weekly Lending Review

  1. Do the figures you quote above for yields, number of new loans etc. include all loans i.e partial and whole?
    In the interests of transparency why do you not publish equivalent stats/figures for partial and whole loans?

    • Well the weekly loan values and numbers of new loans certainly include both whole and partial loans, not sure about the rate numbers.

      AFAIK whole loan rates are set (!?”!) from the partial ones, with some sort of averaging/lag, but the exact details are murky. Maybe Becky can clarify.

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