You’re helping even more small businesses | Weekly Lending Review

Week 27: 29 June – 3 July 2015

It was an exciting week at Funding Circle as we introduced a sixth risk band, to help even more small businesses access finance, whilst offering you more lending opportunities on the marketplace. More than £10 million made its way to businesses across the UK in just one week alone, thanks to your lending.

New loans available to you

There are currently 75 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 £8,709,500, averaging at £66,484 per loan. The largest loan value was £588,000 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: 29-June represents the week of 29th June – 3rd July 2015.

Weekly average gross yield (2 weeks rolling)

Yield 2 27

Number of listed loans per week

Loans listed 27

Listed loan value per week

Loan value 27

Total amount lent

Amount lent 27

Loan parts available to buy from other investors

Loan parts 27

News you should know

Following the introduction of the E band, C- has been renamed to D

C- has been renamed to D to make our risk grading easier to understand. The new risk band structure is: A+, A, B, C, D, E,  where A+ is lowest risk.

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

Industrial fastening stockist. Loan 3824. Risk band A

This Cambridgeshire business was incorporated in 2001 and is entering insolvent liquidation.

Building design. Loan 1839. Risk band B

This London business has been running since 1997 and has entered administration.

Vehicle recovery and repairs. Loan 3564. Risk band D

This Durham business was established in 2012 and has ceased trading.

Sports optics supplier. Loan 3788. Risk band D

This Surrey business was incorporated in 2010 and has ceased trading.

Agricultural contractor. Loan 6127. Risk band D

This County Fermanagh business has been running since 2014 and is 3 months in arrears.

Tarpaulin manufacturer. Loan 5387. Risk band A

This Suffolk business was incorporated in 2007 and has entered insolvent liquidation.

Digital agency. Loan 1372. Risk band C

This London business was established in 1996 and is 3 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