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
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:
- Plumbing specialist in Northumberland is looking for £105,280 to expand
Gross interest rate 11.9%
- Property developer requires £447,740 to modernise a family home in Brighton
Gross interest rate 10.0%
- Family-run commercial glazing company in Suffolk needs £103,100 to move premises
Gross interest rate 8.0%
- Award-winning e-learning platform requires £177,100 for working capital
Gross interest rate 11.9%
- Construction management business is looking for £100,000 to expand
Gross interest rate 9.5%
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)
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
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.