Week 26: 22 – 26 June 2015
The Stripes Company, based in Chester, supplied delightful deckchairs and sun shelters for the set of Downton Abbey! A striped fabric specialist, they have borrowed over £175,000 across 3 Funding Circle loans since 2011 to help with cashflow. Founder Maria discusses her experience of Funding Circle on the blog.
New loans available to you
There are currently 47 loan requests on the marketplace which are all available for you to lend to.
As part of lending to businesses, some may be unable to fully repay their loans, which is why diversification is so important. We’ve created a short video which runs through the basics of diversification and how you can diversify at Funding Circle.
The total value of new loans listed on the Funding Circle marketplace was £11,375,820, averaging at £64,811 per loan. The largest loan value was £430,000 and the smallest loan value was £7,500.
Business loans still available for bidding on for the next 3 days or more:
- Global telecommunications provider requires £210,540 to expand
- Nationwide security firm needs £78,140 to invest in internal systems
- Property developer is looking for £125,00 to refurbish two flats in Putney
- Solicitors need £50,000 to purchase freehold offices
- Creative agency requires £51,560 for refurbishment work
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: 22-June represents the week of 22nd – 26th June 2015.
Weekly average gross yield (2 weeks rolling)
Number of listed loans per week
Listed loan value per week
Total amount lent
Loan parts available to buy from other investors
News you should know
We’re introducing a new risk band and renaming C-
We’re excited to announce that we’re introducing a sixth risk band, E, to help more small businesses access finance, whilst offering investors more borrowers to lend to. These loans will be listed on the marketplace over the coming weeks.
Within the next few weeks, C- will also be renamed to D to make our risk grading easier to understand. The new risk band structure will be: A+, A, B, C, D, E, where A+ is lowest risk. Please note all loans parts you hold which are C- will be renamed to D shortly.
Providing more information around defaulted loans
If you have any defaulted loans you may have noticed we apply a RAG (Red, Amber, Green) rating system, also known as a traffic light system, in the loan comments on your dashboard. This is to help you assess the quality of your defaulted loans, and your expected return over a certain period of time.
Loans defaulted last week
Retail outlet. Loan 8629. Risk band B
This Glasgow business was established in 2008 and is entering liquidation.
Building contractor. Loan 3322. Risk band C
This Merseyside business was incorporated in 2007 and has entered insolvent liquidation.
Heating control specialists. Loan 3156. Risk band A
This Hertfordshire business has been running since 2004 and has entered insolvent liquidation.
Dairy cow herd. Loan 7966. Risk band A+
This Staffordshire business was established in 2014, and the borrower has become unresponsive.
Car accessory specialist. Loan 9129. Risk band C
This West Midlands business was incorporated in 2011 and has ceased trading.
Legal service. Loan 6344. Risk band B
This Bedfordshire business has been running since 2014 and the owner is proposing an individual voluntary arrangement.
All affected investors have been notified.
Our collections and recoveries team are working to recover the outstanding amounts for all of these loans. Read how our collections and recoveries process works on our blog.
Enjoy lending, The Funding Circle Team