We’re introducing a new risk band and renaming C- to D | Weekly Lending Review

Week 25: 15 – 19 June 2015

We’re excited to announce that we are  introducing a sixth risk band, E, to help more small businesses access finance, whilst offering UK 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 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.

More information about the new risk band and renaming risk band C- to D can be found on our blog or if you have any questions please contact us.

Record value of new lending opportunities

There are currently 70 loan requests on the marketplace which are all available for you to lend to.

The total value of new loans listed on the Funding Circle marketplace was £13,689,600, averaging at £67,159 per loan. The largest loan value was £500,000 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: 15-June represents the week of 15th – 19th June 2015.

Weekly average gross yield (2 weeks rolling)

Yield

Number of listed loans per week

Loans listed

Listed loan value per week

Loan value

Total amount lent

Amount lent

Loan parts available to buy from other investors

loan parts

Are you diversified?

We’ve created a short video about diversification, which simply means lending small amounts of money to lots of different businesses, to help you earn an attractive return in a sustainable way. Remember, by lending to businesses your capital is at risk.

Providing more information around defaulted loans

If you have any defaulted loans you will have noticed that we now apply a RAG (Red, Amber, Green) rating system, also known as a traffic light system, in the loan comments on your dashboard. The purpose of the new system 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

Property management company. Loan 10116. Risk band C

This London business was established in 2010 and is entering a long-term payment plan.

Software products supplier. Loan 6194. Risk band B

This Essex business has been running since 2011 and has entered liquidation.

General engineering manufacturer. Loan 3790. Risk band B

This Stafford business was incorporated in 1970, and has entered liquidation.

Car suspension manufacturer. Loan 3258. Risk band C-

This Hampshire business was established in 2008 and is now two months in arrears.

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

 

Rob McCorquodale