A record value of lending opportunities | Weekly Lending Review

Week 8: 15 – 19 February

Last week, you and other investors helped 214 businesses across the UK access £15.5 million through the Funding Circle marketplace. Of the new loans listed, the South East was the most popular location, and property and construction was the most popular sector.

New loans available to you

There are currently 51 loan requests on the marketplace, and thousands of loan parts available for you to buy.

The total value of new loans listed on the Funding Circle marketplace was a record-breaking £20,923,960 averaging at £72,558 per loan. The largest loan value was £512,500 and the smallest loan value was £5,000.

Business loans available to bid on:

Gross interest rates are before fees and estimated bad debts. Your actual return may be higher or lower as by lending to businesses your capital is at risk.

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: 15-Feb represents the week of 15th – 19th February.

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 8 Yield

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

Number of listed loans per week

WLR 8 loans listed

Listed loan value per week

WLR 8 loan value

Total amount lent

WLR 8 amount lent

Loan parts available to buy from other investors

WLR 8 loan parts

News you should know

ISAs at Funding Circle are coming soon!

We’re gearing up for the launch of the marketplace lending ISA in April, a seminal moment for our industry. Read what the new ISA means for Funding Circle investors, and we answer some of the top questions we’ve received, on the blog.

Loans defaulted last week

Crushing equipment specialist. Loan 4994. Risk band A

This Carmarthenshire business was established in 1998 and is four months in arrears.

Pet shop. Loan 14036. Risk band D

This Lincolnshire business has been running since 2003 and is behind with repayments.

Vehicle repair specialist. Loan 13042. Risk band C

This Greater Manchester business was established in 2009 and has ceased trading.

Loft insulation installers. Loan 14012. Risk band A+

This Cheshire business has been running since 2011 and has been placed in creditors’ voluntary liquidation.

Extreme sports specialist. Loan 11073. Risk band A

This Tyne and Wear business was established in 2007 and has ceased trading.

Metal gate manufacturer. Loan 2963. Risk band B

This London business has been running since 2008 and has become unresponsive after missing repayments

Stockbroker. Loan 17150. Risk band A+

This Cumbria business was established in 2010 and has become unresponsive after missing repayments.

Air conditioning company. Loan 13339. Risk band A

This East Sussex business has been running since 2010 and is proposing a company voluntary agreement.

Cleaning business. Loan 13062. Risk band B

This Kent business is seeking legal advice for bankruptcy.

Web developers. Loan 2433. Risk band C

This Nottinghamshire business has been running since 2005 and is consulting an insolvency practitioner.

Our collections and recoveries team are working to recover the outstanding amounts for all of the loans described above 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

 

The changing face of finance | Weekly Lending Review

Week 7: 8 – 12 February

Last week, you and other investors lent £14.9 million to 200 businesses across the UK, and the Guardian looks at how buy-to-let landlords are turning to marketplace lending following recent tax changes in our round-up of last month’s industry news.

New loans available to you

There are currently 32 loan requests on the marketplace, and thousands of loan parts available for you to buy.

The total value of new loans listed on the Funding Circle marketplace was £17,442,820 averaging at £74,620 per loan. The largest loan value was £429,360 and the smallest loan value was £5,000.

Business loans available to bid on:

Gross interest rates are before fees and bad debts. Your actual return may be higher or lower as by lending to businesses your capital is at risk.

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: 8-Feb represents the week of 8th – 12th February.

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 7-16 yield

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

Number of listed loans per week

WLR 7-16 loans listed

Listed loan value per week

WLR 7-16 loan value

Total amount lent

WLR 7-16 amount lent

Loan parts available to buy from other investors

WLR 7-16 loan parts

Loans defaulted last week

Car sales business. Loan 3978. Risk band A

This Kent business was established in 2003 and is three months in arrears.

Building consultancy. Loan 14834. Risk band A+

This Cheshire business has been running since 2012 and is being placed in creditors’ voluntary liquidation.

Graphic design agency. Loan 3379. Risk band D

This London business was established in 2000 and was placed in liquidation in February.

Money advice service. Loan 4129. Risk band C

This Nottinghamshire business has been running since 2009 and is being placed in liquidation.

Marketing agency. Loan 2608. Risk band A

This Berkshire business was established in 1999 and the borrower has become unresponsive.

Manufacturer. Loan 891. Risk band B

This West Yorkshire business has been running since 1961 and has been placed into administration.

Graphics producer. Loan 5304. Risk band B

This Nottinghamshire business was established 2003 and has ceased trading.

Website developers. Loan 3451. Risk band A

This Nottinghamshire business has been running since 2011 and is being placed into formal insolvency proceedings.

Electrical contractor. Loan 11066. Risk band C

This Birmingham business was established in 2011 and has ceased trading.

Lending to businesses can deliver attractive returns, while helping businesses access the finance they need to grow. However, from time-to-time some businesses will be unable to repay their loan, which is why lending a small amount to lots of different businesses is so important. As of 1st January 2016, 100% of diversified investors are earning a positive return*. Watch our 90 second diversification video to find out more. Remember, your actual return may be higher or lower as by lending to businesses your capital is at risk.

Our collections and recoveries team are working to recover the outstanding amounts for all of the loans described above 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

 

*This is based on all investors who have been lending for at least 1 year to 100 businesses with a maximum exposure of 1%, and have been at this level of diversification for at least 75% of the days they have been lending. It includes all earnings and is calculated after fees and bad debt but before tax and does not include future expected losses.

How to improve your brand impact through colour

Want to make your product or service stand out from the competition, and increase sales at the same time? It’s time to review your colour palette.

Our minds instinctively respond to colour

Have you noticed how the bright blues and greens of spring have a more positive psychological effect on us than the bleak grey tones of winter?

We also automatically associate different colours with particular circumstances. For instance, red with danger and heat, blue with cold and calmness, pink for girls, blue for boys and so on.

As well as influencing our mood, colour has the power to impact our purchasing decisions, with many of the major brands using it to evoke very specific emotions:

How you can use colour to improve your marketing

Brand recognition

Studies have revealed our brains prefer recognisable brands, which is why colour is key when creating your brand identity.

Colour increases brand recognition by up to 80% (University of Loyola). For example, Apple introduced colour to unchartered territory. By introducing its colourful, eye-catching range of iMacs, Apple was the first to say ‘it doesn’t have to be beige’ and reinvigorated its brand (it’s since brought us iPods and the iPhone 5c in a range of colours).

Standing out from competitors

Many organisations specifically focus on logo colours to ensure they stand out from the competition. For instance, if your competitors use blue, then you can improve your chances of standing out from them by using purple instead.

Target audience

If you’re targeting women, then research has revealed they prefer purples and greens, while blues, greens and black are most preferred by men.

How to choose your colour palette

Before you start selecting or rethinking your brand colours, think about these useful common colour characteristics:

Black

  • Highly versatile colour
  • Can be modern or traditional
  • Often used for luxury products
  • Used by the likes of: Chanel, Nike, Mercedes-Benz

Red

  • Is the colour of power
  • Grabs people’s attention
  • The most effective colour used by marketers to attract consumers’ attention
  • Symbolises good luck in Asia, which is why it’s one of the prominent colours in Japan Airlines’ logo
  • Used by the likes of: Virgin, Christian Louboutin, Coca Cola

Green

  • Is the easiest colour for eyes to process
  • Warm and inviting
  • Represents environment, health and good will
  • Used by the likes of: Starbucks, BP, Land Rover

Blue

  • Viewed as a professional colour
  • Can have a calming effect
  • Creates the impression of trust and security
  • Often associated with corporate companies
  • Used by the likes of: Twitter, Samsung, PayPal, Barclays

Yellow

  • Has the same power as red in capturing people’s attention
  • Conveys confidence, happiness and optimism
  • Often used to attract window shoppers
  • Used by the likes of: McDonald’s, Nikon, Kodak, DHL

Branding and colour are inextricably linked. Once you know the emotions you want to inspire in your target audience, then you can select the colours that will enable you to achieve this.

By Tim Witcherley, Cognition Agency

You read more marketing tips by downloading any of Cognition’s free eguides.

Cognition is a full-service marketing agency and a Funding Circle borrower. It’s known for its commercial approach, linking marketing activity to revenue and growth.

If you’re interested in taking out a Funding Circle business loan, you can apply online at anytime.

 

ISA’s at Funding Circle – coming soon | Weekly Lending Review

Last week, you and other investors lent £13.6 million to 207 businesses across the UK, and we’re gearing up for the launch of the marketplace lending ISA. You can read more about what the new ISA means for Funding Circle investors on the blog.

For the latest ISA news from Funding Circle, click here.

New loans available to you

There are currently 38 loan requests on the marketplace, and thousands of loan parts available for you to buy.

The total value of new loans listed on the Funding Circle marketplace was £19,903,800 averaging at £65,892 per loan. The largest loan value was £554,680 and the smallest loan value was £5,000.

Business loans available to bid on:

Gross interest rates are before fees and bad debts. Your actual return may be higher or lower as your capital is at risk.

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: 1-Feb represents the week of 1st – 5th February.

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 6-16 yield

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

Number of listed loans per week

WLR 6-16 loans listed

Listed loan value per week

WLR 6-16 loan value

Total amount lent

WLR 6-16 amount lent

Loan parts available to buy from other investors

WLR 6-16 loan parts

Support local this Valentine’s Day

Whether you’re looking for a relaxing weekend away or exquisite flowers, we’ve prepared a selection of marketplace gift ideas to help you spoil that someone special this Valentine’s Day. You can show your support for small businesses across the country.

Loans defaulted last week

Hotel. Loan 11163. Risk band B

This Perthshire business was established in 2005 and is closing down.

Furniture manufacturer. Loan 1088. Risk band B

This Leicestershire business has been running since 1987 and has been placed into administration.

Dental appliance manufacturer. Loan 7001. Risk band B

This Hampshire business was established in 2006 and has breached their loan contract.

Foster care specialist. Loan 1863. Risk band A

This Kent business has been running since 2004 and is three months in arrears.

Car showroom. Loan 2026. Risk band B

This Lancashire business was established in 2005 and is three months in arrears

ICT specialist. Loan 10248. Risk band D

This East Sussex business has been running since 1995 and is late in making 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 (part one and part two) on our blog.

Enjoy lending, The Funding Circle Team

 

The future of finance is changing for the better. January industry news.

Newspapers - Copy

Bloomberg Business Innovators list 2016

In this year’s ‘Bloomberg Business Innovators list’ Funding Circle was named as one of the breakthrough businesses disrupting the way people live and work in the UK. From leading fintech start-ups to bionic hand creators, the British Business Innovators are transforming industries and changing the future for the better, according to CityAM.

UK tech sector raised $3.6bn venture capital in 2015

In 2015, the UK technology sector secured a record $3.6 billion from venture capitalists, up 70% from 2014. Funding Circle’s James Meekings was quoted saying, “Small businesses are the lifeblood of the economy. The money we raised, from some of the world’s leading investors, allows us to continue to increase the number of small businesses that can borrow through Funding Circle, both in the UK and across the world. We want to become the first choice for small business lending.” More coverage in Bloomberg, CityAM and Business Insider.

Three predictions for the City of London in 2016

Sir Roger Gifford, former Lord Mayor of London, explains his three predictions for the City of London in 2016, which includes the fintech revolution. The predictions show how the importance of financial technology is continuing to grow, with over 44,000 people currently working in the sector, and marketplace lending thriving within it.

Alternative finance must get over the final hurdles and be alternative no more

An article in The Independent discusses the move by marketplace lending platforms to establishing themselves as a genuine rival to the banks. A positive plan that is being put into place is the Government’s statutory referrals scheme. Under the scheme, banks will be required to refer businesses to alternative sources of finance instead of turning them down completely.

EY says there is a massive ‘void’ in fintech

With billions of dollars flowing into the fintech sector, Ernst and Young has run a survey to find out just how many people are using this type of technology. They found that out of 10,000 ‘digitally active consumers’ across the globe, 1 in 7 people consumers already use a financial technology product. This study links to a recent  survey by Transferwise  which predicts that in 5 years time, the amount of people using a technology provider for their financial needs will almost double.

Bye bye buy-to-let … but where next for your money?

And finally, over the past few years, there’s been a significant increase in buy-to-let in the UK, but recent Government announcements could make it less attractive. Marketplace lending is a potential option to suit landlords and other investors who are looking for a fairer and faster way to access income. This article in the Guardian highlights the positives of marketplace lending and the attractive rates you can receive if you properly diversify your investments. Learn more about what diversification can do for you on our blog, and remember, by lending to businesses your capital is at risk.

News

Top tips for introducers applying for a Funding Circle loan

 

Do you have clients in need of fast and flexible finance through Funding Circle? Cast your eye over our list of top tips below to make sure you have all of the information you need to help them grow and expand.

1. Which clients are eligible for a Funding Circle business loan?

Our aim is to help established and creditworthy businesses access finance through our marketplace. To date, 12,000 businesses across the UK have borrowed more than £1 billion directly from investors.

Limited companies, limited liability partnerships (LLPs) and non-limited companies that have at least 2 years of filed or formally prepared accounts can apply. We’ll typically need to see a minimum annual turnover of £50,000 in your client’s latest accounts. You can check their eligibility online in just 30 seconds.

2. Types of business loans we offer

Unsecured loans – typically up to £250,000

These are highly flexible loans that can be used for a wide range of purposes, including working capital, expansion capital, asset purchase and more.

Secured loans  typically up to £1 million

These loans can be used for a wide range of purposes and will allow your client to borrow more for their business.

Asset Finance – typically up to £1 million

If your client’s thinking about purchasing a new asset or refinancing an existing one, then this could be the best solution. We can also fund the VAT if required.

Property Finance – typically up to £3 million

We offer the full suite of property loans including finance for development and investment purposes, including commercial mortgages and bridging loans. Please contact propertyfinance@fundingcircle.com to find out more.

A personal guarantee from the majority shareholder(s) is required for all of the above.

Neil Broker

Funding Circle introducer Neil McDonagh, Director at HCF Commercial Finance, secured a £75,000 for his client Spartan Motor Factors to open a another branch of their vehicle parts shop in South Wales. Find out how Neil helped his client grow their business on the blog.

3. What do we look for when we make decisions?

The credit assessment team use the information you provide on behalf of your client, as well as information from credit bureaus (for example, Experian) and other third parties.

Once you’ve checked your client is eligible, which takes just 30 seconds, you will need to complete our short, 3 step, online application and provide the following, all of which can be uploaded online:

  • Most recent filed / formally prepared accounts
  • Last three months of business bank statements

If the accounts are more than 16 months old, please include the P&L and balance sheet covering the last financial year.

4. How long does the process take?

The application form takes just 10 minutes to complete. Our credit team will then assess the application, making a decision typically within 2 working days. The funds are typically available for your client to drawdown within a week.

5. What interest rate will your client pay back?

If the application is successful, the loan will be given a risk band. We currently have six risk bands including: A+, A, B, C, D and E. This will help to determine the final interest rate your client pays back on the loan. Interest rates start at 6%.

6. Fees and flexible commission

We charge a single up-front fee. The fee your client pays will depend on the term of the loan they request and the risk band they are given by our credit assessment team. There are no charges for early repayment.

We also offer a flexi fee option where you choose the commission you would like to earn, which in turn has an impact on the total fee your client pays.

Your client will pay one single fee, and only if they decide to accept the loan. The combined fee and commission must not be more than 10% for each loan.

7. How are repayments structured?

Loans are paid back in equal monthly instalments over the chosen time period. (Please note the repayment structure of some property development loans may vary.)

It’s important to finalise your client’s ID documents and help them to set up their direct debit as soon as possible, as the first repayment is due one calendar month after the loan request closes. This is to ensure payments are on time for the investors who have lent to your client.

8. Who are the investors?

With more than 46,000 investors, including individuals, local councils, financial institutions  and the Government-backed British Business Bank*, the marketplace gives all types of investors, big and small, the chance to participate in the loan.

Each loan request is listed on the marketplace and is either funded in full by a large investor, often a financial institution, or as a partial loan, where hundreds of smaller investors can offer as little as £20 each to make up the full loan amount.

9. When can your client apply for a second loan?

Once your client has made at least 3 to 6 months of repayments on their existing loan, we may be able to help further with a second loan. If you have clients who have already borrowed through Funding Circle, get in touch to see how we might be able to help them grow to the next stage.

Partner with Funding Circle

We work with hundreds of introducers including commercial finance brokers, financial advisors, corporate partners and accountants. If you haven’t yet tried Funding Circle but have clients who are looking for fast, flexible finance, why not register now to check their eligibility.

If we already work with you, we hope you found this list of top tips useful. Log back in to your account to start submitting more deals.

Have a question?

If you are unsure about any of the above or would like to discuss how we can help, our dedicated team are more than happy to help. Call 020 3667 2208 or email introducer@fundingcircle.com. You can also download our full introducer guide to Funding Circle.

 

*Funding Circle is supported by the British Business Bank, a development bank wholly owned by the UK Government. The British Business Bank and its subsidiaries do not offer bank accounts, take deposits or provide regulated banking services. The British Business Bank provides its financial support to smaller businesses through its delivery partners. Any decisions to provide finance to smaller businesses are made by Funding Circle not by the British Business Bank.

Support local this Valentine’s Day | Weekly Lending Review

Week 5: 25 – 29 January

Last week, you and other investors lent a record breaking £18.6 million to 228 businesses across the UK, and we’ve put together a list of marketplace gift ideas to spoil that special someone this Valentine’s Day.

New loans available to you

There are currently 32 loan requests on the marketplace, and thousands of loan parts available for you to buy.

The total value of new loans listed on the Funding Circle marketplace was £17,926,580 averaging at £81,580 per loan. The largest loan value was £537,120 and the smallest loan value was £5,000.

Business loans available to bid on:

Gross interest rates are before fees and bad debts. Your actual return may be higher or lower as your capital is at risk.

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: 25-Jan represents the week of 25th – 29th January.

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 yield 5-16

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

Number of listed loans per week

Loans listed WLR 5-16

Listed loan value per week

Loan value WLR 5-16

Total amount lent

Amount lent WLR 5-16

Loan parts available to buy from other investors

Loan parts WLR 5-16

Loans defaulted last week

Insulation solutions. Loan 1724. Risk band C

This Dorset business was established in 2010 and is late in making repayments.

Events business. Loan 15780. Risk band B

This Hertfordshire business has been running since 1999 and is being placed in creditors’ voluntary liquidation.

Digital design agency. Loan 7921. Risk band A

This Wiltshire business was established in 2006 and has ceased trading.

Plumbing business. Loan 14869. Risk band E

This Hertfordshire business has been running since 2009 and has been placed in creditors’ voluntary liquidation.

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

5 Valentine’s Day ideas supporting local businesses

Valentine’s Day is just around the corner, so we’ve prepared a selection of gift ideas from 5 fantastic businesses who you and other investors have helped over the past years. Whether you’re looking for a relaxing weekend away or exquisite flowers for that special someone, we’ve tailored the list below to suit a wide range of interests and budgets.

Screen Shot 2016-02-01 at 17.11.59Pictured: Nic from La Petite Poissonnerie

Considering a romantic night in? Look no further. La Petite Poissonnerie, who borrowed £30,000 in August 2015, are a Japanese and French fusion fishmonger in London run by husband and wife, Nic and Zaya Rascle. They sell fresh fish along with a selection of French epicerie and wines and a range of Japanese groceries – everything you need for a special Valentine’s evening at home.

Indulge your loved one this year with organic and natural products. Fushi Wellbeing, who borrowed £139,000 across two Funding Circle loans, are an online retailer of a wide range health and beauty brands, with items such as bath oils, skin care lotions and massage kits.

Screen Shot 2016-02-01 at 17.17.47Pictured: Lucy from Mill View Plant Centre

Buying flowers for that special someone? Mill View Plant Centre, a family-run plant centre run by Colin Dallimore and his two daughters in Oxfordshire, sell a range of plants and shrubs along with a beautiful array of flowers, a perfect surprise for your significant other. The team borrowed £100,000 from 1,171 individual investors in November 2015 to help them expand and open a coffee shop.

Screen Shot 2016-02-01 at 17.21.41

If you want an adventure, why not book an expedition with Wild & Remote? The company, who borrowed £40,000 in 2012, seek to deliver tailored adventures with a sense of quality and luxury. The experienced team lead a range of exciting trips, from horseback riding in the heart of Devon to hiking in the stunning Swiss Alps.

And finally, if you’re looking to spoil someone this year, Krystal London design and manufacture bespoke jewellery in the UK. The company, who borrowed £40,000 from 671 investors, handcraft everything locally themselves using the finest quality Swarovski Crystals at affordable prices.  

Looking for more inspiration? Read through our other gift ideas.

Does your business need finance? We’ve helped more than 15,000 businesses in UK, US, and Europe access finance for a whole range of needs. You can apply online in 10 minutes.

Enjoy Lending. The Funding Circle Team