‘The disruption of financial services has only just begun’ | Weekly Lending Review

Week 36: 31 August – 4 September 2015

Included in this month’s industry news, Funding Circle CEO Samir Desai discusses how disruptive new technology companies are transforming business in Europe and borrower Jenny Brown explains in The Sunday Times how marketplace lending helped her business, Pampeano, grow. Read our round-up on the blog.

Important Funding Circle update

We’ve been looking at ways to improve our marketplace for borrowers and investors and have decided to introduce fixed interest rates for all new loans, within the next month. Last week, we sent a letter and Q&A to all active Funding Circle investors announcing the change. Read more about what this means for you on the fixed interest rate webpage.

New loans available to you

There are currently 37 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 £9,417,040 averaging at £80,499 per loan. The largest loan value was £390,000 and the smallest loan value was £5,120.

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: 31-Aug represents the week of 31st August – 4th 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)

WLR 36 yield
Number of loans, value of loans and amount lent are reported weekly.

 

Number of listed loans per week

WLR 36 loans listed

Listed loan value per week

WLR 36 loan value

Total amount lent

WLR 36 amount lent

Loan parts available to buy from other investors

WLR 36 loan parts

News you should know

Updates to Autobid

Autobid will now buy loan parts which have a discount applied, as well as those listed at par value. In addition, we’re also increasing the maximum discount you can apply to 20% of the outstanding principal. These changes have been reflected in clauses 4.6 and 7.3 of the investor T&Cs.

Loans defaulted last week

Food wholesaler. Loan 11236. Risk band D

This Bury business was established in 2012 and the borrower has become unresponsive.

Pub. Loan 8973. Risk band C

This Essex business has been running since 2012 and will be served with a statutory demand.

Lighting manufacturer. Loan 6939. Risk band B

This Cornwall business was established in 2009 and has been placed into administration.

Utility engineers. Loan 6937. Risk band A+

This Hertfordshire business has been running since 1998 and the guarantors intend to enter into individual voluntary arrangements.

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