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

 

Rob McCorquodale