Improvements to the way loans are listed
At Funding Circle, our aim is for investors to earn attractive returns by lending to established businesses in a quick and simple way. As part of this commitment, we have introduced a new way for businesses to accept their loan contract before their loan is listed on the marketplace.
This has two main benefits for investors:
1) Your funds earn interest as soon as the loan is 100% funded: Previously, once a loan received 100% of its required funding, the borrower would have up to five working days to accept or reject the loan. However this meant your funds were tied up during this period and not earning interest.
2) More businesses accepting loans: Previously approximately 15% of businesses would reject their loans once fully funded. By accepting their loan contract before they are listed on the marketplace, this means that when you place a bid you can have confidence that once the loan is funded it will close automatically, and your funds will not be held in loans that can be rejected by the business owner.
As a loan reaches 100% of its required funding, it will now automatically complete and you will no longer see it listed on the loan request page. On occasions it may appear that there are fewer loan requests for you to bid on, particularly on a Monday morning or after a bank holiday weekend. However plenty of lending opportunities will be made available for you every week. You can find recent marketplace data in our weekly lending review, found on our blog.
This new improvement follows on from the introduction of fixed rate loans in October last year and we are pleased to make it available to investors after many months of work. We hope you have found this post useful, and if you any questions then please get in touch or join the conversation on the forum.
The Funding Circle team