Telegraph: how can I get 8pc for the least risk? | Weekly Lending Review

Week 41: 10 – 14 October

In your round-up of last month’s industry news, The Telegraph discusses the benefits of online lending and we’re pleased to welcome Eric Daniels, former Chief Executive of Lloyds TSB, to the Funding Circle family.

New loans available to you

There are currently 12 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 £23,743,340, averaging at £82,398 per loan. The largest loan value was £500,000 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 41 yield

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

Number of listed loans per week

WLR 41 loans listed

Listed loan value per week

WLR 41 loan value

Total amount lent

WLR 41 amount lent

Loan parts available to buy from other investors

WLR 41 loan parts

News you should know

Lord Turner turns from critic to fan of online lending

Speaking at the LendIt Europe conference last week, Lord Turner, former chairman of the UK’s financial regulator, said marketplaces like Funding Circle, are ‘likely to become a stable and useful part of the credit supply system.’ Find out more in Bloomberg.

Top 10 London Startups with the Most Gender Equal Commercial Teams

This week, it was great to be ranked one of the Top 10 London Startups with the Most Gender-Equal Commercial Teams.

4 hauntingly good Halloween ideas

Stock up on decorations, sweets and costumes from these 4 small businesses to ensure a ghoulishly good night this Halloween.

Loans defaulted last week

Shop. Loan 1515. Risk band A

This Somerset business has been running since 2000 and is 3 months in arrears.

Motorcycle specialist. Loan 2427. Risk band C

This London business was established in 2007 and has ceased trading.

Videographer. Loan 17271. Risk band E

This London business has been running since 2011 and is 3 months in arrears.

Online retailer. Loan 19119. Risk band D

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

Manufacturer. Loan 20161. Risk band C

This London business has been running since 1993 and is being placed into liquidation.

Fabric structure specialist. Loan 7424. Risk band A

This Somerset business was established in 2001 and is being placed into liquidation.

Construction company. Loan 16023. Risk band A

This Kent business has been running since 2006 and is being placed into liquidation.

Wine manufacturer. Loan 641. Risk band A

This Gloucestershire business was established in 2002 and has proposed a Company Voluntary Arrangement.

Financial advisers. Loan 20538. Risk band A+

This Yorkshire business has been running since 2007 and was placed into liquidation in May 2016.

Benefits of diversification

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.

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