Changes to the marketplace next week | Weekly Lending Review

Week 38: 14 – 18 September 2015

We’re introducing fixed interest rates for all new loans next week, meaning that investors on the same loan will earn the same return as each other, similar to how property loans work today.  

We plan to launch next monday, 28th September. Read more about what this means for you on our fixed interest rate webpage.

What will the new fixed interest rates be?

Typically rates will be  based on a range of factors including the risk band and the term of the loan.

Here are the new gross fixed interest rates (before fees and estimated bad debts):

Fixed rate card

Interest rates for property loans will be set on a case by case basis and will be clearly indicated on the individual loan request.

What happens if you use Autobid?

If you use Autobid there’s nothing you need to do as it will continue to lend to businesses on your behalf. It will lend at the interest rates stated above for new loans, and buy loans parts at rates you have saved in your current settings.

New loans available to you

There are currently 49 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 £13,402,940 averaging at £81,659 per loan. The largest loan value was £400,000 and the smallest loan value was £7,300.

Business loans still available to bid on:

Weekly marketplace trends

These graphs show the most recent activity on the marketplace. The dates on the graph should be read as ‘week beginning’, for example: 14-Sept represents the week of 14th – 18th September 2015.

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 (The calculation is AGY = (1 + (two week rolling weighted average rate/12))^12 – 1). You can view the latest gross interest rates accepted on the marketplace on our statistics page.

Weekly average gross yield (2 weeks rolling)
Yield WLR 38

Number of loans, value of loans and amount lent are reported weekly.

Number of listed loans per week

Loans listed WLR 38

Listed loan value per week

Loan value WLR 38

Total amount lent

Amount lent WLR 38

Loan parts available to buy from other investors

Loan parts WLR 38

News you should know

Investor evening

Last Thursday we had the pleasure of welcoming investors into our office to discuss the move to fixed interest rate loans. We filmed the event and will be publishing the video in the next week. Further information about the change can be found on the fixed rate webpage.

Updates to our terms and conditions

On Monday we’ll be changing our T&Cs following the introduction of fixed interest rate loans. You’ll be required to re-accept the loan conditions next time you place a bid or buy a loan part. Read more about the updates on the blog.

Loans defaulted last week

Commercial lighting manufacturer. Loan 10770. Risk band C

This Essex business was established in 2009 and went into administration on 10 August.

Language school. Loan 7290. Risk band C

This Cardiff business has been running since 2007 and has proposed a Company Voluntary Arrangement.

Flooring contractors. Loan 7943. Risk band C

This Bedfordshire business was established in 1997 and entered administration on 19 June.

Residential building contractors. Loan 13710. Risk band A

This London business has been running since 2010 and the guarantor is unresponsive.

Our collections and recoveries team are working to recover the outstanding amounts for all of these loans and they will provide you with updates in the loan comments section on your summary page. Read how our collections and recoveries process works (part one and part two) on our blog.

Enjoy lending, The Funding Circle Team

Rob McCorquodale