A record-breaking £47.5 million lent to businesses in July! | Weekly Lending Review

Week 31: 27 – 31 July 2015

A record-breaking £47.5 million was lent to businesses across the UK through the Funding Circle marketplace in July, thanks to your lending.

There are a wide variety of opportunities on the marketplace for you to lend to, including a property developer building 4 new homes in Wigan and a fundraising business looking to expand. Remember, by lending to businesses your capital is at risk.

New loans available to you

There are currently 46 loan requests on the marketplace which are all available for you to lend to.

If you are lending to less than 100 businesses (and are not part of the 100 club) you may be missing out on a more stable return. We’ve created a short video which runs through the basics of diversification, which simply means lending small amounts of money to lots of different businesses, and how you can diversify at Funding Circle.

The total value of new loans listed on the Funding Circle marketplace was £11,440,520, averaging at £84,304 per loan. The largest loan value was £515,480 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: 27-July represents the week of 27th – 31st July 2015.

Weekly average gross yield (2 weeks rolling)

WLR 31 Yield

Number of listed loans per week

WLR 31 Loans Listed

Listed loan value per week

WLR 31 Loan Value

Total amount lent

WLR 31 Amount Lent

Loan parts available to buy from other investors

WLR 31 Loan parts

News you should know

We’re making some small changes to our investor terms and conditions this week, mainly to clarify how the marketplace works and to comply with regulation. More information about the specific changes can be found on our blog.

If you have any questions please contact our customer service team who will be happy to help.

Loans defaulted last week

IT recruiter. Loan 4315. Risk band D

This Hertfordshire business was established in 2007 and is 5 months in arrears.

Video game retailer. Loan 8570. Risk band B

This Angus business was incorporated in 2012 and has ceased trading.

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


5 thoughts on “A record-breaking £47.5 million lent to businesses in July! | Weekly Lending Review

  1. I must question how accurate your quoted gross yield stats are. E class loans, to date, have all closed at the MBR of 18.2% (from my experience and according to your own loan book), but are shown as averaging 19.8%? What other stats are mis-stated?

  2. I know you’ve explained – in the week 30 blog – how you arrive at the 19.8% figure, but “This calculation assumes you reinvest your interest each month and therefore includes the compound interest you earn” isn’t good enough imo.

    Even if you re-invested the monthly returns from an 18.2% loan and bid on another 18.2% loan,
    a) no such loan might be available to bid on
    b) even if there’s such a loan available to bid on
    i) there’s the dead time when the auction is running
    ii) the borrower can take days to accept the loan, more dead time
    iii) the borrower might not accept the loan
    Basically, I think there’s very little chance that 19.8% is achievable. Imo, you’re knowingly overstating possible returns. If I wasn’t such a friendly chap, I might refer this to the regulator, asking their position on overstated figures.
    You should state only the figure money was lent at. For risk E, that’s 18.2% max. I suspect most of your other figures are overstated.

  3. Thanks for your comments. Hopefully the below is clear, but if you have any further queries about this please let us know. Investors can see their individual returns after fees and bad debts within their accounts. The latest accepted gross interest rates are available daily on the statistics page. The gross yield is just one measure (using the following calculation: AGY = [1+ (18.2%/12)^12]-1) – and it assumes reinvestment of repayments and the effect of compound interest. Most investors re-lend their interest because borrowers make monthly repayments back to them.

    • Re-investment at the same interest rate is possible without delay only if there are Loan Parts available at that rate with 0% premium. If the money is re-invested in new loans, it will almost certainly be subject to delay (where your money earns no interest) – waiting for the auction to end, waiting for the borrower to accept the money.
      By ignoring such delays, which I would suggest are almost certain to occur in practise, you’re knowingly overstating gross yields by using a model you know doesn’t correspond to reality.

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