Your April Review – Insight and Analysis
You told us that monthly and weekly updates were a little too much, so to better suit your needs we’re improving the way we talk to you on a monthly basis.
In this first review, we’re focusing on what’s been happening on the marketplace to help you get the most from your investment.
For many people, spring represents the time to have a good clean out in their homes, but it is a good opportunity to get your financial house in order as well. Here are 4 tips to spring-clean your Funding Circle account, including checking your Autobid settings and making sure your funds are working hard.
In March, you and other investors helped more than 1,600 businesses access over £116 million to grow and prosper, up from £62 million in March 2016. That means new jobs created, opportunities taken, and new energy driven into the economy — thank you for your continued support!
You’ve helped 8,639 small businesses access finance in the last 6 months…
Totalling over £634 million lent
March 2017 sector breakdown
Amount lent to each sector
March 2017 regional breakdown
Amount lent to each UK region
As part of lending to businesses, a small percentage will not be able to fully repay their loan which is known as bad debt. We believe diversification, where you lend no more than 1% of your total to each business, is the best way to reduce the impact this has on your return. Autobid is the easiest way to do this.
Returns are likely to change over time
To help guide you on what you can expect from your lending experience, our latest digging into the data blog looks at how a typical investor account could perform over a five-year period and how diversification can help you earn a more stable return.
Each week, we publish a list of the loans being defaulted on the Customer support section of our website under ‘Announcements.’ To see a breakdown of the loans defaulted last week simply click on loans defaulted 23rd March 2017. For further information on why Funding Circle defaults loans you can read our FAQ here.
Stay tuned for mid April, when we’ll publish ‘Your Impact – Lending Impact and Borrower Stories’ which will showcase success stories from recent borrowers and how your lending has helped them achieve their goals.
Enjoy lending, the Funding Circle team
*The current estimated return is a weighted estimate of the annual return after fees and bad debts that investors could earn from lending money to businesses seeking loans today. It is calculated by taking the gross interest rate less fees and estimated bad debts that will occur in the future for each of the last 3000 loans accepted on the marketplace. The average return is weighted by loan amount, compounded and before tax. The return is updated daily. See the full calculation here.