Fixed interest rates have arrived for new loans | Weekly Lending Review
Week 39: 21 – 25 September 2015
From this week, all investors on the same loan will earn the same return as each other, following the introduction of fixed interest rates for all new loans.
This will make the lending process simpler and you can bid knowing your offer rate cannot be knocked out by other investors. The change won’t affect the loans parts you currently hold.
If you’re unsure about what this means for you, please contact us and we’ll be happy to help.
New loans available to you
There are currently 29 loan requests on the marketplace.
The total value of new loans listed on the Funding Circle marketplace was £14,328,200 averaging at £70,181 per loan. The largest loan value was £445,000 and the smallest loan value was £5,120. On 22 September you helped lend a record-breaking £4 million!
Loan parts available for you to buy:
- Property developer building 2 houses in Richmond. Gross interest rates from 4.6 – 9.1%
- Double glazing business in Cumbria refurbishing their office. Gross interest rates from 16.7 – 17.9%
- HR consultancy growing through increased advertising. Gross interest rates from 9.0 – 10.0%
Business loans available to bid on:
- Digital printer requires £130,000 to move to a larger factory
- Land surveyor needs £15,000 to buy a drone
- Accountancy firm is looking for £260,420 to expand and buy an additional practice
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: 21-Sept represents the week of 21st – 25th 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)
Number of loans, value of loans and amount lent are reported weekly.
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
If you’re an Autobid user…
We’ve made some adjustments to Autobid:
- you can now select a maximum of 0.25% of your portfolio to be lent to one business to help you diversify
- your Autobid will automatically bid on new loans requests in the risk bands you have selected, at the gross interest rates below:
- Use the advanced settings to choose the rates to buy loan parts at.
You can read more about the Autobid upgrade on the blog and remember, your actual return may be higher or lower as your capital is at risk.
Updates to our terms and conditions
We’ve updated 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.
Things we’re talking about
On the forum this week we’re on-hand to talk about the move to fixed rates. You can join the conversation here.
Loans defaulted last week
Haulage company. Loan 5177. Risk band C
This Cornish business was established in 2009 and has been placed in creditors voluntary liquidation.
Building services. Loan 11898. Risk band A
This Surrey business has been running since 2000 and was placed into liquidation on 21 August 2015.
Aluminium manufacturer. Loan 5986. Risk band B
This Dorset business was established in 2011 and has ceased to trade.
Law firm. Loan 4613. Risk band D
This Merseyside business has been running since 2009 and has struggled to maintain repayments.
Golf equipment wholesaler. Loan 11467. Risk band B
This Cheshire business was established in 2001 and is late with its repayments.
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 on our blog.
Enjoy lending, The Funding Circle Team