We’re upgrading Autobid: here’s what you need to know
On Monday, 28th September we plan to release an upgraded Autobid. If you’re already using Autobid there’s nothing you need to do as it will continue lending for you. We’re just making some adjustments so it works with fixed interest rate loans.
How will Autobid work?
Autobid will bid at interest rates set by Funding Circle for all new loans listed on the marketplace. These rates are based on a number of factors including the risk band and term of the loan. Please see below for the gross interest rates which will take effect from Monday, 28th September. Your actual return may be higher or lower as your capital is at risk.
By using the advanced settings you can choose the risk bands you want to lend to and the interest rates you want to buy loan parts at on the secondary market.
Following investor feedback we’ve received, we are reducing the maximum amount you can lend to each business from 0.5% of your total portfolio, to 0.25%. This means Autobid can spread your money across even more businesses than ever before, so your investment should be more diversified.
From Monday, you’ll be able to change this setting. Here’s what it will look like:
Using advanced settings?
With the new advanced settings shown below, you can choose the risk bands you want to lend to, ranging from A+ to E, view the estimated bad debt rates for each risk band, and choose your offer rate for buying loan parts on the secondary market.
Quick tip: You’ll need to turn Autobid off to update your settings.
What does it mean for you?
If you’re using Autobid:
There’s nothing you need to do, as Autobid will continue lending for you. It will place bids on new loans and buy loan parts from other investors.
If you’re new to Autobid, follow these simple steps to turn it on:
1. Navigate to Autobid in your account
2. Select the maximum you want to lend to one business, as a percentage of your total funds. The lower you set this, the more diversified you will be which becomes important when a business is unable to repay their loan.
3. Click ‘Turn Autobid on’
If you only want to lend to certain risk bands, you can do this in the advanced settings:
1. Click Advanced settings
2. Check the risk bands you want to include
3. You can adjust your secondary offer rate here too, and view the estimated return after fees and bad debts
4. Click ‘Turn Autobid on’
If you have any questions about this, please get in touch with our customer relations team.
The Funding Circle team