Your July Impact – Lending Impact and Borrower Stories

In this month’s post find out how your lending has helped businesses across the UK achieve their goals. First up, meet our very first Funding Circle borrower, Sustainable Direction, to hear about their latest project on the Isle of Alderney. Then, whizz to beautiful Brighton to learn how your lending helped Christine Johnston take her business, Kite, Surf & Sup Co, to the next level.

In case you missed it, here’s last month’s post, when South East Timber & Damp told us how accessing finance in just 10 days revolutionised their business back in 2015, and we met Amy Cunnington, owner of The Strings Club, who borrowed to keep up with demand for her award-winning music courses.

Dr. John Henry Looney is passionate about helping the world do more with less

Last month, Funding Circle co-founder and UK Managing Director James Meekings visited John Henry to see how his business, Sustainable Direction Ltd, had developed since taking out their first Funding Circle loan back in August 2010.

Dr. John Henry Looney from Sustainable Direction

With a Ph.D. in Physiological, Community and Statistical Ecology, John Henry has over 30 years’ experience in delivering environmental and sustainability projects for businesses and organisations. Sustainable Direction Ltd helps businesses work with the natural world in order to increase their sustainability, efficiency and ultimately their prosperity. Watch what happened when John met James in this short video.

Did you help Christine take her business to the next level?

Meet Christine Johnston, founder of Kite, Surf & Sup Co, a successful British kitesurf school and online shop in Brighton. Former windsurfing World Champion, Christine has kite surfed for nine years and holds eight national titles.

Christine Johnston, founder of Kite, Surf & Sup Co

After years of working long hours in an office, Christine knew this way of life wasn’t for her, so in 2014 she followed her dream and founded Kite, Surf & Sup Co. Two years later, the company was awarded British Kitesports Recognised School status – the highest level a kite school can reach – giving testament to the high-quality lessons that Christine and her team offer.

To upgrade the website, launch an online marketing campaign and purchase additional stock, Christine took out a loan in March 2017. Asked about her Funding Circle experience, Christine said, “The customer service I received was excellent and within a week the funds were in my account.”

Watch this space for a video about Christine and her amazing business coming soon!

Up next

At the beginning of August, we’ll be publishing ‘Your August Review – Insight and Analysis’ which will focus on the numbers and include some helpful tips to help you make the most of your investment.

As always, if you have any questions or comments our dedicated team are here to help. And if you have any further suggestions we’d love to hear them.

Enjoy lending, the Funding Circle team.

Revisiting the first business to borrow through Funding Circle

Dr John Henry Looney is passionate about helping the world do more with less

With a PhD in Physiological, Community and Statistical Ecology, John Henry has over 30 years’ experience in delivering environmental and sustainability projects for businesses and organisations. In 2007, he decided to take the plunge and founded Sustainable Direction Ltd. John Henry and his team help businesses work with the natural world in order to increase their sustainability, efficiency and ultimately their prosperity.

Sustainable Direction Ltd is helping Alderney improve the efficiency of its energy infrastructure

The first Funding Circle borrower

John Henry also opened the way for small businesses back in August 2010 when Sustainable Direction Ltd became the first business to access finance through Funding Circle. They borrowed £12,000 from 53 investors to help demonstrate the viability of an outdoor air source heat pump.

Progression over 7 years

Sustainable Direction Ltd is now improving the energy efficiency of places like the Isle of Alderney, while investors lending through Funding Circle have helped a further 25,000 UK businesses to access finance.

Since 2010, we’ve worked tirelessly to improve our customer experience, as John Henry found when he borrowed a further £54,000 in October 2016 to hire two new members of staff and develop the business’s resources. John Henry said “We found it even easier this time…and it happened so fast, within a day or two the funds were in our account”.

Funding Circle co-founder and UK Managing Director James Meekings visited John Henry to see the development of Sustainable Direction Ltd— watch the video to find out more.

Are you interested in lending to businesses like Sustainable Direction Ltd?

Lend alongside 63,000 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.

Looking to expand your business?

More than 25,000 businesses in the UK have accessed finance from Funding Circle, helping with cash flow, refurbishment, hiring staff and much more. You can check if you qualify for a business loan online in just 30 seconds.

Your July Review – Insight and Analysis

Your July Review
If, like us, you’ve been inspired by Wimbledon, get new ideas to get active this summer with our list of 7 specialist Funding Circle borrowers who’ve flourished thanks to your lending.

Also included in this month’s post, The Telegraph looks at how our economy is dependent on the stability of small businesses. Dive in below.

June lending figures
Last month, you and other investors helped businesses to take new opportunities, create new jobs and drive energy into the UK economy — thank you for your continued support!

July investor stats

June industry News

Included in last month’s industry news, The Telegraph focuses on a recent Nesta report which shows that it’s small and medium-sized enterprises, not larger firms, that are supporting greater job creation in Britain, making up 50% of GDP and 60% of private sector employment. These businesses, like the ones you’re lending to through Funding Circle, really are the backbone of our economy.

Monthly trends
These graphs show the most recent activity on our platform.

You’ve helped more than 8,700 small businesses access finance in the last 6 months…

 June no of loans

 

Totalling over £625 million lent

June amount of loans

June 2017 sector breakdown

Amount lent to each sector
June sector

June 2017 regional breakdown

Amount lent to each UK region
June region

Loans defaulted last week
As part of lending to businesses, a small percentage will not be able to fully repay their loan. This is known as bad debt and is a normal part of business lending. 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. You can diversify automatically using our Autobid tool.

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 6th July 2017.  For further information on why Funding Circle defaults loans you can read our FAQ here.

Collections and recoveries
How it works
You can also read more about how our collections and recoveries process works (part one and part two) on our blog.

Up next in July, we’ll be looking at the impact your lending is having on the UK economy and bringing to life some of the businesses you’ve helped access finance.

As always, if you have any questions or comments our dedicated team are here to help. And if you have any further suggestions we’d love to hear them.

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.

This blog is a general summary, and should not replace financial advice tailored to your specific circumstances. Funding Circle is not authorised to, and does not, provide investment, tax, legal or regulatory advice. If you have any questions, please speak to your professional advisor or seek independent specialist advice.

Smile, direct lending comes of age. June industry news

Peer-to-peer comes of age as alternative asset class for investors – Financial Times

It’s been more than a decade since the first peer-to-peer lending company launched in the UK, opening up a new and innovative asset class to investors for the first time. Since then, we’ve seen the adoption of the industry increase at an encouraging rate. Not only are businesses benefitting from the financial support they need, but ordinary people are investing directly into the UK economy, fueling prosperous growth and job creation across the country.

Beat inflation and boost your savings – The Times

As the 100th month of low interest rates begins, investors are continually looking for better places to put their money. Getting your cash to work harder for you can be a challenge, so you might find this article in The Times useful as it lists a number of options to consider, such as investing in stocks & shares and lending to small businesses. A separate piece in the Telegraph looks at a selection of popular easy-access savings account available for your shorter-term investments. But remember, when you lend to businesses your capital is at risk.

Smile, banking is being forced out into the great wide open – The Times

Thousands of businesses have benefitted from the adoption of FinTech across the country, such as Funding Circle borrower, South East Timber & Damp, run by husband-and-wife team Annabelle and Dean Webster. In need of fast financial support, the couple approached their bank first but soon realised the process could take months. After doing some research online, they discovered direct lending and just 10 days later, they secured a cash injection for their business – all thanks to your lending.

On what kind of business growth should we focus our energies? – Daily Telegraph

In the UK, the resilience of the economy is dependent on the stability of our small businesses – who make up 50% of GDP and 60% of private sector employment. Nesta research shows that it is small and medium-sized enterprises, not larger firms, that are supporting greater job creation in Britain. This piece highlights the importance of balancing the financial support given to high-growth startups that are boosting innovation, with the support small firms and sole traders need as they continue to be the backbone of our economy.

One Year Later: Voices from Brexit’s Front Lines – Bloomberg

And finally, it’s been one year since the UK voted to leave the European Union so Bloomberg is following four CEOs over a two-year period to canvass their ongoing opinions on Brexit. An interesting comment from James Meekings, our co-founder, focuses on the need for the British Business Bank to increase the availability of funding in post-Brexit Britain. The EU has injected billions of pounds into British small businesses over the years, so it’s important that the UK Government introduces the necessary measures to prevent any potential shortfall. More on the topic in the Express.

Seven ideas to help you stay active this summer

Hello summer! Longer days means more time to get outside and try new activities. With Wimbledon kicking off next week, we wanted to share some of our favourite ways to get fit this summer, featuring businesses who specialise in keeping people active. So come along and join us on our journey across the UK as we visit some of these extraordinary companies who have flourished thanks to your support.

1. Canoeing in Scotland

Our journey begins in idyllic Scotland at an events and bespoke travel company that will help you kick-start your active summer. Sporting Scotland is run by a team of adventurous individuals who run a number of different activities including canoeing and sea kayaking down two of Scotland’s most exciting rivers, the River Spey and the River Findhorn. Both routes offer a spectacular chance to explore stunning beaches, coves, islands and cliffs. In order to refurbish their premises, Sporting Scotland borrowed over £30,000 through the Funding Circle platform in April 2017.

2. Cycling in Rugeley

If you’re an avid cyclist then our next stop is for you! Based in Rugeley, More Adventure provides high quality cycling challenges and holidays in various locations across the world. We suggest the 10 day ride from Lands End to John O’Groats – from one end of the UK to another. Nearly 1,000 miles in total, you’ll be travelling through some of the most glorious scenery England and Scotland has to offer. To help expand and explore new products, More Adventure have borrowed finance across two loans since November 2014.

3. Horseback riding in Shropshire

From Rugeley we’re heading West to stunning Shropshire to visit Live the Adventure and test our skills at horseback riding. From instructional treks for the beginners, to four day trail rides for those with a real sense of adventure, the Live the Adventure team can offer packages to suit any rider. To  develop more professional training programs the team turned to Funding Circle in 2014 and were able to secure a cash injection for their business.  

4. Golfing in Gloucestershire

Love golf? Then you’ll love the next stop on our trip across the UK. Sherdons Golf Centre, a family-run business in the Gloucestershire countryside welcomes golfers of all abilities. The centre boasts a 9 hole course as well as a clubhouse with banqueting and bar facilities – a great way to finish a long day on the course. The team at Sherdon’s were able to exercise their long-term marketing plan after borrowing finance from 474 investors in 2013.

5. Hot yoga in Bristol

The next business to visit on our journey is Yogafurie in beautiful Bristol, a hot yoga and pilates studio. Hot yoga is said to improve the circulation of oxygen and nutrients in the body which in turn fuels the mind – it’s a true full body workout. The team of superb teachers offer a range of different classes for all abilities. You could even join a teacher training or workshop if you’re a truly passionate yogi. Yogafurie was able to open a new space after borrowing £20,000 through Funding Circle.

6. Cricket in Hampshire

Next stop: Hampshire countryside. At Funding Circle, we love team sports, which is why we’re challenging you to set up your own cricket match! Don’t have the supplies? Take a trip to Chase Cricket for all of your equipment needs. Since 1996, the enthusiastic Chase Cricket team have been designing and handcrafting the very finest cricket bats for young and old in all levels of the game. To add a sales and marketing specialist to their team, Chase Cricket accessed finance from Funding Circle investors in April 2016.

7. Kitesurfing in Brighton

Our journey across the country ends in delightful Brighton where watersport lovers congregate in the summer. The Kite, Surf & Sup Company is a British Kitesports school and online shop set up in 2014. Founder Christine Johnston is a former windsurfing World Champion so her skills and expertise shines through in all of the lessons she teaches. To help increase stock and upgrade their website to help with online marketing, the kitesurfing company has borrowed finance across two loans from 127 investors.

Are you interested in lending to businesses like these?

Lend alongside over 62,000 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.

Looking to expand your business?

More than 25,000 businesses in the UK have accessed finance from Funding Circle, helping with cash flow, refurbishment, hiring staff and much more. You can check if you qualify for a business loan online in just 30 seconds.