Take 10: Get started using Facebook advertising (part one)

Quick and simple ways to boost your business in just 10 minutes

For the fourth in our Take 10 series, we’re looking at advertising on Facebook and how to get started. Once you’re up and running, part two will cover best practices and how to drive traffic to your website giving you the opportunity to increase revenue.

Social Media advertising will become increasingly important for businesses

Paid Social, or social media advertising, refers to any form of paid for advertising on social media websites such as Facebook, LinkedIn, Twitter and Instagram. Whilst it’s still fairly new, it’s estimated that 17% of digital advertising spend will be on social advertising by 2017.

The Facebook opportunity for small businesses

Facebook currently dominates the social media advertising space as it has the most established tools and with 1.13 billion active users every day, the opportunity for your business is enormous. Whether you’re a shop, manufacturer or a service provider, Facebook can help you locate and target potential customers with your adverts.

Targeting potential customers

Any business, big or small, has the option to post for free from their business page, but to ensure your adverts reach the right audience, with the right message at the right time, you will be required to pay.

For example, Funding Circle borrower The Vineking could use Facebook advertising to target adults within a certain age range and radius of their wine shops in Surrey with adverts to drive footfall.

Top tip: To set up an advertising account from your business page, follow Facebook’s simple instructions here.

Adverts are given the same amount of space as updates from your friends

When browsing your News Feed you may have noticed adverts interspersed with updates from your friends. They can also be displayed on the right hand side of your screen, like the Funding Circle adverts below. You can choose where your adverts appear in the placements settings of your account, although it’s worth being aware that the right hand side option is not available on mobile devices due to the display.

Facebook adverts example

Adverts in a News Feed are given the same amount of real estate on your timeline as updates from friends and family, so there is huge opportunity for your message to be seen by potential customers. This is why creating eye catching adverts is a must.

Making an advert? Get creative!

Most of your potential customers on Facebook will be browsing their News Feed so you only have a split second to grab their attention. Make sure both your advert and the action you want your customer to take are as simple as possible to give your business the best opportunity for success.

Facebook have put together some creative recommendations which are worth reading for inspiration – after all, they’re the ones who decide whether to show it! We’ll be discussing more of this in part two.

Keep Facebook’s policies and guidelines in mind

Before adverts appear on Facebook, they need to be reviewed to make sure they meet Facebook’s advertising policies. This typically takes about 24 hours. You can read Facebook’s guidelines here.

Top tip: Adverts aren’t recommended to have more than 20% of the image taken up by text. You can test the text-to-image ratio of your image by using Facebook’s handy tool.

We hope you found this post useful. In the next instalment of Take 10, we’ll be looking in more detail at best practice for advertising on Facebook, how you can get started on a campaign and bidding strategies.

The Funding Circle team

This post follows our previous Take 10 on how social media can help you win new business, including tips on setting up a Facebook business page.

What a fantastic few weeks! | Weekly Lending Review

Week 33: 15 – 19 August

What a fantastic few weeks in Rio! As the Team GB Olympians touch down after a record breaking two weeks, we’ve been inspired to keep active this summer with these 5 tip-top Funding Circle businesses.

New loans available to you

There are currently 6 loan requests on the marketplace, and thousands of loan parts available for you to buy which will help you become diversified.

The total value of new loans listed on the Funding Circle marketplace was £15,783,260 averaging at £75,343 per loan. The largest loan value was £477,240 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 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 33 yield

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

Number of listed loans per week

WLR 33 loans listed

Listed loan value per week

WLR 33 loan value
Total amount lent
WLR 33 amount lent

Loan parts available to buy from other investors

WLR 33 loan parts

Loans defaulted last week

Computer games software. Loan 21256. Risk band A

This East Sussex has been running since 2003 and has become unresponsive after missing repayments.

Engineers. Loan 14966. Risk band D

This Northamptonshire business was established in 2011 and was placed into administration in August 2016.

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

6 years of small businesses making a big impact | Weekly Lending Review

Week 32: 8 – 12 August

Last week, we celebrated our 6th birthday, the inspirational stories of small business owners and their impact on the UK economy. Watch this short video to find out more.

New loans available to you

There are currently 8 loan requests on the marketplace, and thousands of loan parts available for you to buy which will help you become diversified.

The total value of new loans listed on the Funding Circle marketplace was £10,035,580 averaging at £61,192 per loan. The largest loan value was £413,620 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 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 32 yield

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

Number of listed loans per week

 WLR 32 loans listed

Listed loan value per week

 WLR 32 loan value

Total amount lent

 WLR 32 amount lent

Loan parts available to buy from other investors

WLR 23 loan parts

News you should know

We recently commissioned a report to help us better understand the impact lending and borrowing through Funding Circle has on the UK economy. Since 2010, Funding Circle investors and businesses have helped:

  • boost economic activity (measured by GVA) by £2.7 billion
  • create over 40,000 jobs
  • build approximately 2,200 family homes

Read more about the key findings, from why businesses choose Funding Circle to unleashing the potential of small housebuilders.

Loans defaulted last week

Social care management. Loan 15995. Risk band A+

This Hertfordshire business has been running since 2011 and has ceased trading.

Heating contractor. Loan 16939. Risk band D

This Greater Manchester business was established in 2011 and was placed into liquidation in March 2016.

Software developers. Loan 6852. Risk band D

This South Yorkshire business has been running since 2008 and is 3 months in arrears.

Noodle restaurant. Loan 2820. Risk band C

This West Midlands business was established in 2008 and is 3 months in arrears.

Engineers. Loan 5944. Risk band A

This Staffordshire business has been running since 2004 and is 3 months in arrears.

Laminate specialists. Loan 18751. Risk band A

This East Sussex business was established in 1995 and is being placed into insolvent liquidation.

Online sofa bed shop. Loan 14439. Risk band B

This West Sussex business has been running since 2004 and is being placed into insolvent liquidation.

Roofers. Loan 11440. Risk band A+

This Hertfordshire business was established in 2008 and has been placed into liquidation.

Restaurant. Loan 4975. Risk band C

This West Midlands business has been running since 2009 and is being placed into insolvent liquidation.

Plumber. Loan 10416. Risk band A+

This Buckinghamshire business was established in 2012 and is being placed into insolvent liquidation.

Training centre. Loan 21126. Risk band B

This Tyne and Wear business has been running since 2003 and is being placed into liquidation.

Clothes shop. Loan 11150. Risk band B  

This Lancashire business was established in 2010 and was placed into administration in February 2016.

Business support. Loan 8451. Risk band B

This Kent business has been running since 2011 and has ceased trading.

Home care provider. Loan 16049. Risk band B

This Hertfordshire business was established in 2007 and is being placed into liquidation.

Hotel. Loan 20608. Risk band A+

This West Midlands business has been running since 2008 and is being placed into insolvent liquidation.

Medical services. Loan 18176. Risk band A+

This Berkshire business was established in 2008 and was placed into administration in July 2016.

Architectural joiners. Loan 12894. Risk band A+

This Oxfordshire business has been running since 1972 and is being placed into insolvent liquidation.

IT services. Loan 14148. Risk band B

This Bedfordshire business was established in 2000 and was placed into liquidation in August 2016.

Bicycle shop. Loan 12694. Risk band C

This County Durham business has been declared bankrupt.

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. Watch our 90 second diversification video below to find out more. Remember, 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

 

Picture story: Supporting local wine merchants in Surrey since 2014

The Vineking is an independent wine merchants operating across four shops and a warehouse in Surrey. The business was established in 2003 when founder Erik spotted a gap in the market for a more specialist retail offering.

Today, The Vineking employs 13 wine experts who hold countless Wine & Spirit Education Trust (WSET) qualifications between them, to ensure they can provide the best possible service for their clients. They also run a successful loyalty card scheme.

The shops, dotted around Surrey, host a regular calendar of events including pop up restaurants such as the very popular ‘Game of Rhones’ pop up, wine tastings and private events ranging from private banquets in store to personalised tastings run in customers own homes. If you’re in the area and would like to attend we’d encourage you to buy your tickets early to avoid disappointment, as we hear the events book up months in advance!

Alongside creating unique shopping experiences where customers can meet experts, the directors also run a successful wholesale business supplying wines of all kinds to bars and restaurants, clubs and catering businesses.

To open their fourth shop in East Molesey and buy stock, The Vineking has borrowed over £150,000, across two business loans, since 2014. In this picture story, take a tour of the new shop and meet manager Sandra:

Vineking cover

Vineking founded 2003

Vineking wine bottles

Vineking sandra

Vineking new shop

Vineking unique shops

Vineking Australia, South America, New Zealand

Vineking spirits craft beers

Vineking craft gin

Vineking investors thank you

Vineking 2 years loan

Looking to expand your business?

We’ve helped more than 15,000 businesses access finance for a range of finance needs, including hiring staff and opening new shops. Get your instant quote today.

 

How to build a great business: find a mentor & manage your cash flow

Five successful business owners from manufacturing, agriculture, service and retail, share their thoughts on what it takes to build a great business in this short video. They have more than 80 years of experience between them.

1)Manage your cash flow

It may seem obvious, but knowing exactly how much money comes in and out of the business on a daily basis is crucial, says Michael Kain, Managing Director of Bramley & Gage. He knows that if they never have another order for their drinks, the business could pay off all of the bills for a period of time. Michael has taken the family gin manufacturing business from strength to strength, selling their award-winning 6 O’Clock gin to stockists across the UK.

2) Plan for expansion

Colin from Mill View Plant Centre in Oxfordshire has been running the family business for over 30 years. He believes you should always think about how you can expand, to ensure you stay ahead of your competition. Whether you want to increase sales by developing or improving new products or services, here are some ideas for how to plan for growth.

3) Integrity

Don Dennis, founder of the Flower Essence Repertoire in Scotland, credits working with integrity as the most important thing he’s learned from running a successful business.

stripes great business

Maria from The Stripes Company now exports her fabric worldwide.

4)  Find a mentor

Maria Hopwood, pictured above, is founder of fabric specialist The Stripes Company and thinks having a mentor is crucial for building up your own business. She’s not alone – some of the most successful business leaders have had mentors including Richard Branson and Steve Jobs.

5) Use social media

Celia Gay from Newton Farm Foods in Somerset uses Twitter and social media to stay in touch with and support other local businesses. Social media can also help you attract new customers.

Building a great business requires investment

All great businesses require investment which is why we’ve created a better way for businesses to access the capital they need for cash flow, growth and more. You can borrow £5,000 to £1 million for your business and pay back over 6 months to 5 years. Check your eligibility online in just 30 seconds – it’s worth noting that 2 years trading is required.

If you could give one piece of advice to someone in the early stages of building their business – what would it be?

Award-winning Doggy Day Care triples turnover!

The days of leaving your faithful friend in a cramped kennel are long gone.

Luxurious overnight hotel suites, an on-site grooming spa, training and behavioural lessons, even a swimming pool – any dog left in the care of Suffolk Canine Creche is guaranteed to end the day tired and content.

In 2011, Candy Rose decided to swap her role as a HR director to follow her dream of opening a daycare centre for dogs, and she had no idea how successful it would be. With a growing waiting list of clients after just 18 months, a move to bigger premises was needed.

Canine creche

To meet this demand and find the space she needed Candy borrowed £84,000 from 644 investors. Since then, the creche has gone from strength to strength — Candy says that turnover has tripled. Recently, Suffolk Canine Creche was awarded Pet Service Business of the Year at the National Pet Industry Federation Awards 2015 and the business now employs 22 members of staff.

In this short video, meet Candy and her happy clients!

Are you interested in lending to businesses like Suffolk Canine Creche?

Lend alongside 50,000 investors and support small businesses across the UK by signing up online today.

You can use our investor information guide to help you get started and there are thousands of loans which you can be a part of, making it quick and easy to build a diversified portfolio. Remember, by lending to businesses your capital is at risk.

Do you want to hire staff?

More than 15,000 businesses in the UK have accessed finance from Funding Circle, helping with cash flow, refurbishment, hiring staff and much more. Get your instant quote today!

 

 

6 years of small business stories

6th birthday banner

Funding Circle was founded in the UK in August 2010 by 3 university friends, Samir Desai, James Meekings and Andrew Mullinger to revolutionise the way small businesses access finance. Today, Funding Circle helps small businesses access the finance they need to grow across the UK, US, Germany, Spain and the Netherlands.

We’re often overwhelmed by the inspirational stories of small business owners across the UK who work all hours to manufacture, create and grow. To celebrate their successes and the impact your lending is having on the real economy we’ve created this short video. Thank you for being part of the Funding Circle community!

Did you know?

We recently commissioned a report to help us better understand the impact lending and borrowing through Funding Circle has on the UK economy. Since 2010, Funding Circle investors and businesses have helped:

  • boost economic activity (measured by GVA) by £2.7 billion
  • create over 40,000 jobs
  • build approximately 2,200 family homes

Are you interested in lending to UK businesses?

Lend alongside 50,000 investors and support small businesses across the UK by signing up online today. You can use our investor information guide to help you get started and there are thousands of loans which you can be a part of, making it quick and easy to build a diversified portfolio. Remember, by lending to businesses your capital is at risk.

Are you looking to expand your business?

More than 15,00 UK businesses have accessed finance through Funding Circle. Get your instant quote today!

The Funding Circle team

Your lending has boosted the UK economy by £2.7 billion

Since Funding Circle launched six years ago, investors including individuals, the government-backed British Business Bank, and a range of financial institutions have helped more than 15,000 UK small businesses access finance. Your lending has helped to create jobs, build homes and support regions that have faced economic hardship in the wake of the last financial crisis.

This was the conclusion of independent research published today by the Centre for Economics and Business Research (CEBR). The report reveals that your lending has supported the creation of 40,000 new jobs, whilst boosting the UK economy by an estimated £2.7 billion since 2010.

You can download the full report here, view our infographic, and read more about the key findings below.

Small business, big impact

Since 2010, your lending has supported the creation of approximately 40,000 jobs across the country. Not only do the businesses you lend to benefit, but companies along those businesses’ supply chains do too. The jobs you help to create also increase spending power in that area, making a further contribution to the economy. CEBR estimates that the total economic activity generated by investors lending through Funding Circle has added £2.7 billion to the UK economy1 over the past six years.

Over three fifths (61%) of borrowers surveyed as part of the report saw their revenue increase as a result of taking a loan with Funding Circle, while nearly half (47%) reported a rise in profits.

Why do borrowers choose Funding Circle?

The report finds that loans facilitated by direct lending platforms like Funding Circle now make up 6% of all new small business loans granted by platforms and the main high street banks.2

Creditworthy businesses are attracted to Funding Circle by the speed and simplicity of the application process. Nearly three quarters (72%) of borrowers found the experience of obtaining a loan with Funding Circle faster than other providers they considered. This helps to explain why 77% initially shopped around for finance, but 94% would come back to Funding Circle first in future.

eirgraph1

 

Your lending is also helping a fifth more creditworthy businesses to access finance than before, where they have previously been underserved by traditional sources of finance. 21% of businesses surveyed believe they wouldn’t have been able to access finance without Funding Circle. CEBR considers this to be due to restrictions in the wider lending environment, with many banks having exposure limits on the amount they can lend to a particular region or sector for example. These businesses are creditworthy – Funding Circle has a robust assessment process which uses a balanced set of risk tools to create a full picture of the borrower’s financial health. You can read more about how we assess loans here.

Supporting businesses in the North

Funding Circle loans are also popular among businesses in parts of the UK that have faced greater economic challenges, such as the North. The North East has the country’s second lowest Gross Value Added, which is a an indicator of economic performance and measures the value of goods and services produced in an area.

Partially due to this economic underperformance, businesses in the North East make up just 3% of all businesses in the country. However, 10% of your lending goes to businesses in the North East helping to balance economic growth across the country.

Unleashing the potential of small housebuilders

CEBR estimates that the UK currently faces a cumulative shortfall of 264,000 homes, with large developers unable to bridge this gap on their own.

eirgraph2

Small developers, like those you lend to through Funding Circle, have continued to struggle to access finance through traditional channels since 2008. Since extending the loans we offer to include property finance, we have been able to better-serve these small developers. CEBR estimates that since 2014, your lending has helped to build approximately 2,200 homes across the country, providing a potential solution to the UK housing crisis.

Conclusion

The research published today by the CEBR highlights the role Funding Circle investors have played in supporting economic growth in the UK. Small business isn’t small – it accounts for half of the UK’s GDP3 and 60% of private sector employment4. Their success, and your lending, is vital to our economy.

We hope you found this piece useful, and if you have any questions please join the conversation over on our forum or get in touch.

Enjoy lending,

The Funding Circle team

1 The CEBR estimates that the direct, indirect and induced GVA impact of Funding Circle loans is £2.7 billion. GVA, or gross value added, measures the economic contribution made by a particular economic unit such as a region, business or industry. It is used as one of the factors when calculating gross domestic product (GDP) and is a measure of the relative economic importance of a business.

2 Direct loans accounted for 6% of all new loans granted by the main high street banks and direct lending platforms to small and medium sized businesses in the last quarter of 2015 – up from 3% for the same period in 2014 – according to data from the British Bankers Association and the Peer-to-Peer Finance Association.

3 Source: http://researchbriefings.files.parliament.uk/documents/SN06078/SN06078.pdf

4 Source: http://www.fsb.org.uk/media-centre/small-business-statistics

 

Small business, Big impact: an infographic

Independent research published today by the Centre for Economics and Business Research (CEBR) revealed that since Funding Circle launched six years ago, investors including individuals, the government-backed British Business Bank, and a range of financial institutions have helped to create jobs, build homes and support regions that have faced economic hardship in the wake of the last financial crisis.

You can download the full report here and read more about the key findings below.

small_business__big_impact_infographic

Do you want to grow your business? More than 15,000 businesses in the UK have accessed finance through Funding Circle for a range of requirements. You can apply online in less than 10 minutes and check your eligibility in just 30 seconds.

Are you interested in lending to businesses through Funding Circle? Create an account online and start lending the same day. Remember, by lending to businesses your capital is at risk.

The Funding Circle team

Download our new iPad app today | Weekly Lending Review

Week 31: 1 – 5 August

Last week, we announced the launch of our refreshed iPad app. Find out more about its features, including Touch ID security and a new summary dashboard, or download it free from the App store today.

New loans available to you

There are currently 5 loan requests on the marketplace, and thousands of loan parts available for you to buy which will help you become diversified.

The total value of new loans listed on the Funding Circle marketplace was £11,568,020 averaging at £69,902 per loan. The largest loan value was £461,540 and the smallest loan value was £5,000.

Business loans available to bid on:

Loan parts available for you to buy:

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 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 31 - yield

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

Number of listed loans per week

WLR 31 - loans listed

Listed loan value per week

WLR 31 - loan value

Total amount lent

WLR 31 - amount lent

Loan parts available to buy from other investors

WLR 31 - loan parts

News you should know

No change following Bank of England rate decrease

Read our update following the Bank of England’s decision to cut interest rates last week.

Loans defaulted last week

Residential care home. Loan 4351. Risk band D

This Kent business was established in 2012 and is 4 months in arrears.

Car specialist. Loan 21130. Risk band A

This East Yorkshire business has been running since 2001 and is being placed into liquidation.

Events business. Loan 8825. Risk band B

This East Lothian business was established in 2010 and is being placed into liquidation.

Sports retailer. Loan 11835. Risk band D

This West Yorkshire business has been running since 2014 and has proposed an individual voluntary arrangement.

Catering company. Loan 12807. Risk band B

This Aberdeenshire business was established in 2002 and is being placed into insolvent liquidation.

Scaffolders. Loan 14176. Risk band B

This Hampshire business has been running since 1997 and was placed into administration in July.

Security services. Loan 4731. Risk band A

This Derbyshire business was established in 1991 and has ceased trading.

Commercial vehicle supplier. Loan 9813. Risk band C

This Essex business has been running since 2008 and was placed into liquidation in April.

Party planner. Loan 17573. Risk band E

This Leicestershire business was established in 2010 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. Watch our 90 second diversification video below to find out more. Remember, 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

 

The power of the people. July industry news

Newspapers - Copy

Funding Circle Hires Former Chief of Nomura Holdings Inc

Last month we announced we will soon be welcoming Jeremy Bennett to the Funding Circle team as Global Chief Financial Officer. Former CEO of Nomura Holdings European division, Jeremy brings over three decades of experience within financial services. During the financial crisis, he was responsible for designing the £800 billion Asset Protection Scheme that provided insurance to all UK banks in 2008. Samir Desai says, “Jeremy has significant experience in building large scale financial services businesses and will play an integral role as we continue our evolution.” Press release on our blog.

Peer-to-peer lending: Everything you need to know about the leading websites

10 years ago, peer-to-peer, or marketplace lending was launched in the UK, bringing the power of people to the financial sector, which in turn has helped many small businesses and the UK economy to grow. Since then, it’s really taken off, opening up new opportunities for investors and borrowers. From reasons to use marketplace lending, to the rates and risks involved, the Telegraph looks at the top platforms in the space and highlights what each of them can offer investors.

Before you make a date, do some background checks

As part of the regulator’s ongoing work to ensure investors are properly protected when lending to small businesses through platforms like Funding Circle, the Financial Conduct Authority (FCA) is currently reviewing the existing regulations. The review was promised in 2014 to ensure the regulations kept up with innovation and developments in our dynamic sector and we will be submitting our response in September. For more information, have a look at our blog and a statement from the FCA.

Where to put £1,000 in a world of negative interest rates

Not only is it important for the FCA to understand the sector, but it’s essential for investors to familiarise themselves with the different forms of investment options available. Whether that’s investing in shares and funds or putting your money into property loans, there are many potential ways to earn attractive returns through peer-to-peer lending. But remember, these are investments, which means your capital is at risk.

Peer-to-peer property lenders promise to transform your fortunes – but is it worth putting your capital at risk?

According to figures from the P2PFA, the size of the peer-to-peer property sector has nearly doubled over the past year, making a huge difference to the number of new homes being built in the UK. Large house builders alone have been unable to keep up with rising demand, meaning that smaller builders play a crucial role in meeting this supply gap. At Funding Circle, investors are helping to alleviate the housing crisis by supporting these small developers, who have now built hundreds of homes across the country.

How marketplace lending is seducing the financial adviser

And finally, City AM discusses how marketplace lending is finally enticing the financial adviser community by offering them a powerful tool to help them diversify their client portfolios. Increasing track records at more established platforms are helping them to become more comfortable with this way of investing, allowing them to help more of their clients to earn attractive returns. Remember, by lending to businesses your capital is at risk.

News

No change following Bank of England rate decrease

As you may have seen, yesterday the Bank of England decided to cut the official base rate from 0.5% to 0.25%, a record low and the first change in seven years. A number of measures have also been introduced aimed at stimulating the UK economy, including an extension to the existing quantitative easing (QE) programme.

B.O.E

Source: BBC, Bank of England

We wanted to let you know that there will be no immediate change to the fixed interest rates on the Funding Circle marketplace. We review our rates on a regular basis, where we take into account a number of factors, including macroeconomic conditions. If there are any changes to rates, we will communicate these to you.

Over nearly six years, Funding Circle investors have earned strong, stable returns. You can read more about how returns have performed over time in our recent Digging into the Data blog post here. Remember, by lending to businesses your capital is at risk.

Enjoy lending,

The Funding Circle team.

New iPad iOS app available to download today!

We’re excited to announce that from today, you can download the refreshed Funding Circle iPad iOS app for free from the App Store.

The new app has been completely redesigned for investors to bring it up-to-date and in line with our mobile iOS app. We’ve also made a few minor changes and bug fixes to the iPhone app, which you can find out more about in ‘Updates’.

The new iPad app enables you to:

  • Keep track of your account more easily with a new summary dashboard
  • Easily find the information you’re searching for with simplified navigation
  • Keep your account safe with passcode and Touch ID security, without the hassle of repeated sign-in
  • Quickly identify what’s changed on the marketplace, with highlighting for loans you haven’t seen before

Screenshot of your new summary

Summary view

Please note the app is currently only available for existing Funding Circle investors. If you’re not registered, you can sign up today and lend alongside 50,000 investors supporting small businesses across the UK. Use our investor information guide to help you get started. There are thousands of loans which you can be a part of, making it quick and easy to build a diversified portfolio. Remember, by lending to businesses your capital is at risk.

Interested in using the iPad app?

If you’d like to use the iOS app you can download it for free from the App Store. For those who used the first version, we hope you’ll notice a real improvement in performance and usability.

Enjoy lending,

The Funding Circle team

 

Fun in the sun with a perfect picnic | Weekly Lending Review

Week 30: 25 – 29 July

It’s August, there’s a bank holiday coming up and the sun is sporadically shining! Whether you’re a seasoned picnic-goer or a novice aiming for picnic perfection, we’ve put together a list of 6 Funding Circle businesses to help you impress your friends and family, while supporting small British businesses this summer.

New loans available to you

There are currently 11 loan requests on the marketplace, and thousands of loan parts available for you to buy which will help you become diversified.

The total value of new loans listed on the Funding Circle marketplace was £14,374,320 averaging at £70,359 per loan. The largest loan value was £406,320 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 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 30-16 yield

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

 

Number of listed loans per week

WLR 30-16 loans listed

Listed loan value per week

WLR 30-16 loan value

Total amount lent

WLR 30-16 Amount lent

Loan parts available to buy from other investors

WLR 30-16 loan parts

Loans defaulted last week

Tanning salon. Loan 3950. Risk band A

This Greater Manchester business has been running since 1996 and is being placed into insolvent liquidation.

Chilli supplier. Loan 16617. Risk band E

This Staffordshire business was established in 2011 and is being placed into insolvent liquidation.

Builders. Loan 19392. Risk band B

This Hampshire business has been running since 2012 and is being placed into insolvent liquidation.

Printers. Loan 11354. Risk band C

This South Yorkshire business was established in 2010 and is being placed into insolvent liquidation.

TV advert producer. Loan 8588. Risk band C

This London business has been running since 2000 and is being placed into insolvent liquidation.

Jeweller. Loan 15132. Risk band B

This East Yorkshire business was established in 2005 and was placed into administration in July.

Aluminium specialist. Loan 7814. Risk band A+

This Mid Glamorgan business has been running since 2001 and is being placed into insolvent liquidation.

Live-in guardians. Loan 18409. Risk band B

This Worcestershire business was established in 2009 and is being placed into insolvent liquidation.

IT services. Loan 9543. Risk band A+

This Nottinghamshire business has been running since 1999 and is being placed into insolvent liquidation.

Games manufacturer. Loan 12387. Risk band C

This East Sussex business was established in 2003 and has become unresponsive after missing payments.

Online retailer. Loan 3488. Risk band C

This Northumberland business has been running since 2011 and is being placed into insolvent liquidation.

Printers. Loan 19303. Risk band A

This Gwent business was established in 1986 and is being placed into insolvent liquidation.

Survey specialists. Loan 4780. Risk band C

This Surrey business has been running since 1999 and was placed into liquidation in June.

Food wholesaler. Loan 6446. Risk band B

This London business was established in 2003 and is being placed into insolvent liquidation.

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. Watch our 90 second diversification video below to find out more. Remember, 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

Have fun in the sun this August with Funding Circle’s picnic guide

The sun is finally shining and with the August bank holiday coming up, there’s no better time to enjoy the sun at your nearest park. Here’s our 6-step guide for making the perfect picnic while supporting British businesses.

Step 1. Head to a grassy space in style with a top-notch picnic set from The Stripes Company. With their vintage style deckchairs and a retro picnic mat complete with a bolster bag for easy carrying, you’ll be all set for a day in the sun. The Stripes Company were able to expand their product range and continue IT development to service UK and overseas expansion using their Funding Circle business loans.

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Step 2. Based in beautiful Bristol, Bakers of Nailsea was established in the 1960’s and is currently run by a father and son team. The family-run company stock responsibly farmed meats that make for a superb BBQ. In order to expand their catering trade, Bakers of Nailsea borrowed £10,000 from 199 investors in March 2014.

Step 3. If you’d like wine to accompany your picnic, have a look at Lindley Fine Wines.They borrowed £6,000 from 108 investors to provide additional working capital to fund expansion and are based in Huddersfield. They have over 350 wines for you to choose from so whether you fancy red, white or bubbly, Lindley Fine Wines have got you covered.

Step 4. For other deliciously refreshing drinks, Lovely Drinks produce award-winning handmade sparkling soft drinks and juices, inspired by the bounty of England’s orchards and hedgerows. Lovely Drinks bought new bottling equipment and upgraded their branding after borrowing £40,000 across 2 Funding Circle loans. Choose from a range of flavours including elderflower, raspberry lemonade and our favourite, sour cherry cola.

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Step 5. Voted one of the 50 best deli’s in the country, Deli Flavour stocks award-winning relishes along with olives, antipasti and a range of cheeses. To help open another shop, the company borrowed £25,000 from Funding Circle investors in November 2013. From the traditional whole grain English mustard or Westmoreland Chutney, through to exotic and spicy chilli jam, these condiments will add a tasty twist to your picnic.

Step 6. Last, but certainly not least, is the staple of all picnics – bread. Whether you favour a slice of focaccia or a more traditional wholemeal loaf, The Dutch Bakery in Southport has something to suit every preference. After accessing £125,000, The Dutch Bakery were able to build an extra storage area and freezer to assist with demand.

Looking for more inspiration? Read more of our ideas to get you out and about this summer!

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