How do Funding Circle returns compare to other investments? | Weekly Lending Review
Week 11: 7 – 11 March
In the latest edition of our ‘digging into the data’ series, we look at the historical performance of returns at Funding Circle over the last four years compared with other investments, and the tax investors will save if they take advantage of the new Innovative Finance ISA at Funding Circle. Find out more in this article.
New loans available to you
The total value of new loans listed on the Funding Circle marketplace was £17,460,660 averaging at £78,627 per loan. The largest loan value was £450,000 and the smallest loan value was £5,000.
Business loans available to bid on:
- Property developer requires £212,780 to build 9 new homes in London
Gross interest rate 8.0%
- IT specialist in Manchester needs £31,580 to expand
Gross interest rate 9.5%
- Vehicle bodyshop in West Yorkshire requires £161,300 for working capital
Gross interest rate 10.6%
- Lifting equipment supplier is looking for £260,420 to expand
Gross interest rate 9.2%
- Drinks retailer in Glasgow needs £50,000 to acquire another business
Gross interest rate 8.3%
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: 7-Mar represents the week of 7th – 11th March.
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.
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
Egg-cellent Easter treats from local UK businesses
Looking for tasty Easter chocolate treats to spoil your friends and family? We’ve put together a list of 5 Easter treats from Funding Circle borrowers, including milk chocolate mini eggs made in Preston and Easter hampers from Warwickshire.
Loans defaulted last week
Hauliers. Loan 8433. Risk band A
This East Yorkshire business has been running since 2000 and is being placed into liquidation.
Accountants. Loan 9147. Risk band A
This County Armagh business was established in 2014 and is proposing an Individual Voluntary Arrangement.
Auctioneer. Loan 16794. Risk band A+
This Cheshire business has been running since 2010 and and has become unresponsive after missing repayments.
Recycling company. Loan 4642. Risk band B
This Cheshire business was established in 1962 and is in the process of being placed into liquidation.
Retail business. Loan 4819. Risk band A
This Somerset business has been running since 2000 and is nearly 5 months in arrears.
Software specialist. Loan 13815. Risk band D
This Cheshire business was established in 2012 and has ceased trading.
Office supplies. Loan 13214. Risk band A
This Berkshire business has been running since 2012 and has breached their loan contract.
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