Watch our new TV adverts

To bring the Funding Circle mission to a wider audience, we have launched a new TV advertising campaign that celebrates those who are made to do more.

Premiered during the Great British Bake Off yesterday on Channel 4, our first TV ad features Victoria, our made to do more drummer. She’ll be joined on the airways in a few days time by Sebastian, who’s showing how you can go even further in skipping.

You can see both adverts below. Please like, share, and help us spread the word, so we can keep helping businesses and investors across the UK achieve even more.


August’s Lending Impact and Borrower Stories

August Investor Impact
In this month’s post, find out how your lending has helped businesses across the UK achieve their goals. First up, meet husband and wife team Peter Robinson and Tracy Pound who borrowed this month. Then we’re headed to the beautiful Exmoor National Park to meet adventure activities specialist the Channel Group and finally we’re enjoying the last of summer at Britain’s best beaches. Dive in below.

A great month for rebrand
Peter RobinsonThis month we had the pleasure of meeting Peter Robinson, who runs award-winning insurance broker business Prizm Solutions in Staffordshire. The business was formed in 2006 when Peter saw an opportunity to radically change the way insurance was transacted.

Today, they have countless recommendations of how they’ve helped clients with their insurance needs; from motor insurance, to liability insurance and employee benefits to name a few. Prizm has also been recognised by their peers, being shortlisted for Community Broker of the Year at the UK Broker Awards 2017.

During our conversation, Peter told us that his wife, Tracy Pound who runs IT training and consultancy specialist Maximity, has been shortlisted for Business Role Model of the Year in the Women in IT awards 2017. On behalf of the Funding Circle community we’d like to wish Peter and Tracy the best of luck in their upcoming awards!

You and other investors helped Prizm Solutions borrow over £150,000 this month to acquire another business and they’ll be increasing their team to 16 people.

August's success story
Jim Channel Training

Outdoor enthusiast goes for growth

The Channel Group was started in 2012, when Managing Director Jim Whittaker and his friend Darren quit their day jobs to found a business with a simple mission: to get more people out and about in the beautiful outdoors.

Five years on, Jim and his team now offer a diverse range of adventurous activities, outdoor education and personal development programmes on the edge of the beautiful Exmoor National Park. You and other investors helped the Channel Group keep up with high demand for their courses and progress with their growth plans.  In this short video meet Jim and hear his story.

Support local this August
Make the most of the final few weeks of summer and head to one of our Britain’s beautiful beaches. From stunning north-east Scotland to the Cornish coast, join our tour of six local businesses where you can go for a bite to eat, have a refreshing drink or stay the night in these top spots.

July’s Lending Impact and Borrower Stories

In case you missed it, here’s last month’s post, when we caught with our first ever borrower on the Isle of Alderney and met business owner Christine Johnson in Brighton to find out how investors, like you, have helped take her business to the next level.

Up next

At the beginning of September, we’ll be publishing ‘Your September 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

Outdoor enthusiast goes for growth

Meet Jim Whittaker, Managing Director at Channel Group and full-time outdoor enthusiast. While teaching science and outdoor education in schools, Jim began to realise that there were things he wanted to do, such as training apprentice instructors and delivering exciting new activities, were best achieved outside of formal education. So he set out to do something about it.

In 2012, Jim and his friend Darren quit their day jobs and started Channel Group, founded with a simple mission: to get more people out and about in the beautiful outdoors. In Jim’s words, “It’s smiles on faces, it’s being in a totally natural environment, where people can just relax, express themselves and be themselves without the clutter of modern life.”  From teaching personal development programmes in Taunton to providing high-quality lessons in Minehead, the adventurous team cover all bases.

Five years on, Channel Group has grown to become a hugely successful outdoor activity business. In order to keep up with the high demand for their courses, Jim needed more passionate people to join the team. Turning to Funding Circle for support, Jim was able to progress with his growth plans thanks to you and other investors. “I can’t ever see any bank loan offer being inline with an aspiration to do some really cool stuff in the outdoors – Funding Circle is about that.”

In this short video, learn more about Jim’s passion for outdoor education:

Are you interested in lending to businesses like Channel Group?
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.

We’re launching an exciting new lending experience

Since we launched Funding Circle in 2010, our aim has been to enable investors to earn attractive, stable returns by lending directly to small businesses.

Recently, we have been reviewing how lending through Funding Circle works, with the aim of making lending simpler, better and fairer for all investors. After careful consideration, we have taken the decision to make some improvements to your lending experience.

On 18th September, we will launch a significantly improved and upgraded version of our existing Autobid and Autosell lending tools, and the option to manually choose which businesses to lend to and which loan parts to sell will be withdrawn.

How will the new lending experience work?

Investors will be able to choose one of two new lending options based on their personal preference. Both options will be available as a Funding Circle ISA, which we intend to launch later this tax year.

  • Balanced: you will automatically lend to the full range of creditworthy businesses (A+ to E), aiming to achieve an attractive, stable return. This will allow you to build a balanced portfolio similar to the makeup of small businesses in the UK today. The projected return is estimated to be 7.5% per year after fees and bad debt.
  • Conservative: you will focus on lending to businesses that have been assessed as lower risk (initially A+/A) but with a lower projected return. The projected return is estimated to be 4.8% per year after fees and bad debt.

Your actual return may be higher or lower, and by lending to businesses your capital is at risk. You can read more about the improvements we are making, and what they mean for you, on our announcement page.

As part of the improvements we are making we are also updating the interest rates at which you lend to businesses. The projected return of both lending options have taken these changes into account. We’ll be introducing these new rates on 30th August, and you can read more about them here.

As part of this change we will also be updating our Terms and Conditions. You can view a summary of the main changes here.

We always want to hear your thoughts, so please fill out the feedback form on our announcement page if you would like to give us your feedback.

Enjoy lending,

The Funding Circle team

Update to Funding Circle rates

At Funding Circle, our aim is to allow you to earn an attractive, stable return by lending directly to a diversified portfolio of creditworthy businesses. To help you achieve this, we regularly update and improve our assessment processes. This also includes regularly reviewing the interest rates at which you lend to businesses.

Following our recent review, we wanted to let you know about some upcoming changes to the interest rates on our platform and our assessment process.

What are the new rates?

From Wednesday 30th August, we will begin to list small business loans in the UK at the gross interest rates below. These rates are shown before fees and bad debt. The projected annual return for the overall Funding Circle loanbook, after fees and bad debt, will be 6.7%*.

We made an important announcement today about some improvements we are making to how lending through Funding Circle will work from the 18th September, including introducing two new lending options. Taking into account these changes, the projected annual return for these lending options, after fees and bad debt, is estimated to be:

  • Balanced – 7.5%
  • Conservative – 4.8%

Your actual return may be higher or lower, and by lending to businesses your capital is at risk.

As some borrowers will have begun their application before the new rates are introduced, you may see loans listed at different rates for the same risk band and term length up until 5th October.

How have the rates changed?

You can see how the new rates compare to our current rates in the table below:

Why are the rates changing?

When reviewing rates we take a number of factors into account, including macroeconomic trends, the expected mix of risk bands of borrowers, expected bad debt rates and wider competition in the market, which continues to be increasingly competitive for lower risk businesses. The new rates will allow you to continue to lend to established, creditworthy small businesses while earning an attractive, stable return.

Will this affect the businesses you lend to?

Over the past seven years, 64,000 investors have lent £2.5 billion to more than 25,000 UK businesses. This has provided us with significant amounts of performance data to help improve our statistical credit models and means we can provide even more accurate pricing decisions to borrowers. With these improvements to our credit models, you can expect to see an adjustment in the mix of risk bands of borrowers in the coming months. This adjustment means the new expected bad debt rate for the overall Funding Circle loanbook will be 2.3% annually.

The improvements also mean we can make updates to our policy criteria. Our policy criteria give direction to business owners and help filter out businesses that have a low likelihood of being approved, so our credit assessment team only spend time on the right type of applications. Our latest policy criteria are:

  • A minimum of two years trading history
  • At least 1 year of filed or formally prepared accounts
  • No County Court Judgments (CCJs) registered in the last 12 months, with no outstanding CCJs larger than £1000

Do you need to do anything?

The new rates will not affect any loan parts you currently hold, and will not apply to property development loans, which are priced individually.  

If you use Autobid to lend to businesses, there is nothing you need to do as Autobid will continue to place bids on new loans at the new rates until 18th September, when the new lending options will be introduced.

As a reminder, these new rates will go live on Wednesday 30th August. If you have any questions about today’s news, please get in touch.

Enjoy lending,

The Funding Circle team

*The projected return is an estimate of the annual return, after fees and bad debts, that a diversified investor could earn. It is calculated by taking the distribution of loans, across both risk band and loan term, that we expect to be funded on the marketplace.

The return is then calculated by taking the gross interest rate of these loans, then deducting the fees and estimated bad debts that will occur in the future. The average return is weighted by loan amount, compounded and before tax. See the full calculation here.

Update to our Terms and Conditions

At Funding Circle, we want all investors to have a simpler, better and fairer lending experience. To help achieve this, on 18th September we will be making a number of important improvements to how lending through Funding Circle will work. You can read more about these improvements here.

We will also be updating both our Investor and Borrower Terms and Conditions (collectively “Terms”) on 18th September, along with our Privacy Policy. We will also be making some small, related changes to the Loan Conditions. In addition, we’ve created a new Website Terms of Use.

What you need to do

The changes will go into effect for all existing investors and borrowers on 18th September 2017, and will apply to all new lending from that date.

If you are an existing investor, the next time you login to your Funding Circle account you will be prompted to read more about the changes we are making, and we’ll ask you to agree to the new Terms. Also, if you are an investor that currently chooses the individual businesses that you lend to, you will be asked to choose your new preferred lending option.

If you’re an existing borrower, it’s important that you read the new Terms because they will apply to you; however you won’t need to do anything else.

What is changing?

We’re making the following changes to our Investor and Borrower Terms:

We’re making them simpler and easier to understand

  • We’re restructuring the order, layout and sections of the Terms to make them easier to read.
  • We’re simplifying the language used to describe:
    • The process of becoming an investor or borrower.
    • How lending will work through the platform.
    • How you engage with the platform and with us.
    • The services we provide to you.
    • The security provisions for secured loans and our collections and recoveries processes.
  • To make the Terms shorter and clearer:
    • We are moving the definitions to a separate glossary to make them easier to find.
    • We’re removing some of the descriptions of how the platform works, for example how to transfer money into your account. You’ll still be able to find these in the Investor Guide and FAQs from 18th September.

We’re reflecting the new investor lending experience

  • The description of how your funds will be matched to businesses is being updated.
  • The section on how to sell your loan parts will be changing to reflect the improvements we have made, and that it will be a fully automated process.
  • From today we have become the first major lending platform to charge no fees for selling your loans, so we have removed references to sale fees from the Terms.

Your rights and our obligations

  • We are clarifying the process you can follow to cancel your Funding Circle account.
  • We’re simplifying the termination rights that apply in relation to your Funding Circle account.
  • We’re clarifying why we may make future changes to the Terms, and the way in which we’ll communicate them to you.

Changes to our Loan Conditions

  • We’re updating the terminology in the Loan Conditions to reflect the new lending experience and mirror the language of the new Terms (for example, we are removing words like “bids” and “listing”).
  • We’ve simplified the language by adding new definitions (for example, “Event of Default”, “Loan Completion Date” and “Total Amount Payable”)
  • We’re amending the section that describes the legal mechanism through which a loan part is transferred from one investor to another when loan parts are sold and bought.
  • We’ve included new circumstances where a borrower may be defaulted, for example where they are abusive to Funding Circle employees.
  • We’re rewording the fees section so it’s easier to understand.

Changes to our Privacy Policy

  • We’re simplifying the policy to make it easier to read and navigate.
  • We’re making some minor changes to our Privacy Policy so that it aligns with our Cookies Policy.
  • We’re making it easier for you to contact us to discuss your privacy rights.

New Website Terms of Use

  • We’ve created Website Terms of Use, which apply to everyone who uses our website even if you are not an investor or borrower.
  • The Website Terms of Use are designed as a set of rules and guidelines that govern your use of the website.

If you have any questions, please don’t hesitate to contact us and we’ll be happy to help.

Enjoy lending,

The Funding Circle team

Happy 7th birthday Funding Circle!

In August 2010, Funding Circle was launched by three university friends, Samir Desai, James Meekings and Andrew Mullinger above a waffle shop. Their small team of five huddled around a telephone battling for their first customers and originated £2 million of lending in their first year.

Seven years on, you and other investors have supported the growth of 32,000 small businesses across the UK, US, Germany and the Netherlands. We’re blown away by how far we’ve come together so far and that’s all thanks to your lending.

Investors earning for their future

69,000 people and organisations are lending to small businesses, including local councils, the government-owned British Business Bank, the European Investment Bank and our most recent investor, Aegon. This new strategic lending partnership will support the growth of approximately 2,600 UK businesses, creating an estimated 6,400 new jobs in the first year. A diversified investor base ensures our platform is stable and sustainable, even in times of economic stress.

Businesses driving the economy forward

32,000 businesses have accessed finance, including David’s IT business, a doggy daycare in Suffolk, and our first ever borrower, Sustainable Direction. We recently met Dr John Henry Looney, founder of Sustainable Direction, to see how his business has grown since 2010.

Small businesses like these are the driving force behind much needed job creation, which in turn fuels productivity and the economy. Lending through Funding Circle has supported the creation of approximately 80,000 new jobs across the world.

And finally, we’re proud to have launched a new look, which celebrates the people who have turned their passions into livelihoods, supporting their families and local communities.

Thank you for choosing to be on this journey with us – Funding Circle wouldn’t be where it is today without all of your support.

Meet the 12 brewers bringing back beer

At Funding Circle we celebrate the people who’ve turned their passions into livelihoods, supporting their families and local communities. Ordinary people doing extraordinary things, pushing the economy forward. This week we’re looking at some of the independent breweries that have flourished thanks to Funding Circle investors.


Up north




1) Roosters Brewery in North Yorkshire brews modern classic Yankee which scooped a silver at the 2017 International Beer Awards and Baby-Faced Assassin which achieved a gold medal at the same event. To continue investing in brewing capacity, Roosters have borrowed over £150,000 since 2015.

2) Over 500 investors helped the Worsthorne Brewing Company in Lancashire expand and keep up with growing demand for their cask ales. Established in 2011, the brewery has quickly gained a reputation for quality. Try their award-winning Old Trout or Blackthorne Stout.

Down south


Down south brewery

3) Over 800 investors helped Gloucester Brewery create an onsite bar and renovate their building. This year, the brewers are concentrating on using new world hops from New Zealand, Australia and US.

4) In the heart of the Devon countryside, Hunter’s Brewery uses only the best locally-sourced ingredients. Last year, you and other investors helped them increase brewing capacity by installing a new fermentation room.

5) Based in an old brick and flint grain store in Oxfordshire, Loddon Brewery borrowed back in 2015 to hire a new specialist member of staff. Choose from their range of beers in the brewery shop, including ‘rich, nutty and malty’ Hullabaloo and ‘highly hopped session ale’ Hoppit.

6) Named after the famous naval hero, Nelson Brewery situated in The Historic Dockyard Chatham uses the finest Kent hops to produce a wide variety of ales including their Admiral of the Fleet. The brewery borrowed in 2016 to buy new equipment and increase production.

In London


In London Brewery


London has been at the epicentre of the recent British beer revolution, with a whole host of taprooms and breweries offering tours sprouting up across the capital.

7) If you’re central, take a short walk from London Bridge and hidden under the railway arches you’ll find Brew By Numbers.The brewery, which borrowed earlier this year to finance expansion, hosts a range of events including beer and cheese evenings in their Tasting Room.

8) At By The Horns in south-west London you can find beer ‘that makes an impression’. Enjoy a pale ale in their taproom or rent out the beer hall for a special occasion. Over 1,500 Funding Circle investors helped the brewery purchase larger fermentation vessels to increase production.

9) When you’re out east, bumble across to Crate Brewery in Hackney Wick who first borrowed in 2015 to expand. While you’re there take a tour of the Brewshed or enjoy a pint and hand-rolled pizza in their fantastically up-cycled bar.

10) Based further north, check out Redemption Brewery in Tottenham and taste their range of 7 core cask ales onsite. They often have local pop-up food stalls as well so you can really make an evening of it. Redemption have borrowed over £90,000 since 2016 to support growth.

In the midlands


11) If you’re still thirsty there’s Byatt’s Brewery near Coventry who borrowed £50,000 to invest in equipment after moving to a 12 barrel brewery.

Whether you prefer cask, can, case or keg we hope you’ve enjoyed our journey across the country discovering the delights of real ale. Check back next time when we’ll be visiting even more fantastic Funding Circle borrowers.

Remember, by lending to businesses your capital is at risk. Not covered by the Financial Services Compensation Scheme.


Six of Britain’s best beaches: where to eat, drink and sleep

With just over a month of summer left, it’s time to pack those picnic blankets and head for the beach! With the pound at a record low, stats reveal that 55% of British adults will be holidaying in the UK this year and enjoying the beautiful selection of beaches we have right on our doorstep.

Starting in stunning north-east Scotland, we’ll make our way across the country right down to the breathtaking coastline of Cornwall, enjoying the sand between our toes at each stop. Along the way we’ll visit six local businesses where you can go for a bite to eat, have a refreshing drink or stay the night.

1. Aberdeen, north-east Scotland

Our journey begins in north-east Scotland at idyllic Aberdeen beach. Known for its golden sand, it’s the perfect place to go on a leisurely stroll, while watching the many surfers test their skills in the water. Afterwards, why take a drive down the impressive coast and have some dinner at The Old Brewhouse? Enjoy a warm, friendly welcome, with delicious food in an enchanting old building, steeped in history dating back to the 1600’s. To add an extension to their premises, the business accessed finance through Funding Circle in October 2016.

Aberdeen coastline, north-east Scotland

2. Bamburgh, Northumberland

After a delicious dinner in Aberdeen, we’re heading south to Northumberland, where we’ll find Bamburgh’s Castle Beach. As the name suggests, the beach boasts a remarkable castle that is known to have stood since the 6th century! With so much history to explore, why rush off? Instead, stay the night at The Granary Guest House, a boutique bed and breakfast located in the heart of Berwick-upon-Tweed. To help with working capital during the winter months, the guest house borrowed £26,000 in November 2014 from 375 investors.

Bamburgh’s Castle Beach, Northumberland

3. Borth, Dyfed

Following a good night’s sleep, you’ll be ready to hit the road to our next destination: Borth, Wales. Borth beach has a unique and ancient submerged forest, which is only visible at low tide, where stumps of oak, willow and hazel can be seen. While you’re in the area, we suggest camping for the night at Bargoed Farm, a family-run caravan park. The site is tranquil and secluded, so you can sit back, relax and enjoy the peaceful settings. To purchase hot tubs and expand the site, the business borrowed through Funding Circle in June 2017.

Ancient prehistoric forest, Borth beach

4. Holkham Bay, Norfolk

Next stop, Holkham Bay in Norfolk, one of the most unspoilt and gorgeous stretches of sand in the country. It’s also one of the largest National Nature reserves in England, which is not surprising given its rich and natural beauty. Fancy a bit of lunch while still enjoying the coastal views? Then head on over to Platten’s Fish and Chips, only a 10 minute drive from the beach. Established in 1966, the family-run fish and chips shop serves delicious food, with an even better view of the harbour. To help buy extra kitchen equipment, the shop borrowed £100,000 in November 2016.

Holkam Bay, Norfolk

5. Babbacombe, Devon

After you’ve had your fill of fish and chips, let’s travel to our next destination in Torquay, Devon. Here you’ll find beautiful Babbacombe Beach. This coastline is a haven of striking views and calm, clean waters where you can unwind and soak up the atmosphere. After a day of outdoor fun, we recommend visiting Hunter’s Brewery, a local microbrewery that’s been crafting top quality ales in the heart of Devon’s countryside since 2008. The brewery was able to install a new fermentation room after accessing finance through Funding Circle in August 2016.

Babbacombe beach, Devon, photo by Nick Potts

6. Bossiney Cove, Cornwall

And finally, our journey ends in charming Cornwall at a lovely spot called Bossiney Cove – a truly hidden gem. Only accessible during low tide, this quiet and private beach is the perfect get away from the hustle and bustle of daily life. Located nearby is our favourite restaurant in Padstow, The Basement. The team provide their customers with quality, well cooked food, sourced from local producers and with a pleasent view of the harbour. To support the development of the outdoor patio space, the team borrowed £60,000 in February 2014 from 960 investors.

Bossiney Cove, Cornwall

Are you interested in lending to businesses like these?
Lend alongside over 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 26,000 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.

How do small business owners feel about Brexit?

During the summer, we spoke to more than 1,325 small business owners to canvass their views on the impact of the recent election and ongoing Brexit negotiations. What we found was that more than two-thirds of small businesses that import goods and services expect costs to increase when Britain leaves the European Union.

When we asked owners specifically about the expected cost increase, importing small businesses told us that they expect their average costs to increase by £5,300 per month resulting in £60,000 per year of extra spending. With 214,300 small businesses currently importing goods or services in the UK, the potential impact is vast at a local and national level.

Of course, Brexit negotiations have only really just begun, so it’s still tricky to know exactly what the impact our our exit from the EU will be. What is clear is that investors lending directly to small businesses is incredibly important to our nation’s prosperity. In the UK, small businesses account for 50% of GDP and 60% of private sector employment, so your support for them is crucial!

The results weren’t all doom and gloom, however, as the majority of businesses we spoke to expect to hire at least one new member of staff over the next year. Business owners were also pleased to state that they think the general election result will soften our EU exit strategy – which the majority think will be good for their business operations.

Investors at Funding Circle include 60,000 individuals, local and national government, the European Investment Bank and financial institutions such as pension funds. By opening up small business lending to a wide range of investors, Funding Circle has improved competition in the market, supported job creation and reduced small business dependency on bank lending.

To date investors have lent £2.5 billion to more than 25,000 UK small businesses. Businesses funded through the platform typically access the capital they need in days, and independent research found that 94% of businesses would come back to Funding Circle first in future.

If you’re a small business looking for finance, visit our website to check if you qualify in just 30 seconds.

Your August Review – Insight and Analysis

August review
Each month we bring you a column by Simon Read, a personal finance expert with extensive experience in helping people make the most of their money. Last time, Simon looked at the effect rising inflation can have on your funds.

This month, fresh from filming the BBC’s Right on the Money Simon discusses how to look after the pennies with savvy financial planning. Also included in this month’s post, find out about our historic partnership with JustEat. Dive in below.

July 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 lending

July industry news

Included in last month’s industry news, The Times interview Funding Circle borrower Yilmaz Guney, who runs a Turkish Restaurant in North London, to understand how he’s benefited from Funding Circle & JustEat’s recent tie-up.

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…

 No of loans July final

Totalling over £617 million lent

 Amount of loans July

July 2017 sector breakdown

Amount lent to each sector

July sector

July 2017 regional breakdown

Amount lent to each UK region

July 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 3rd August 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 September, 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.

Read between the lines: look after the pennies…

Each month we will be bringing you a regular column from Simon Read, a personal finance expert with extensive experience in helping people make the most of their money. In his last piece, Simon looked at the effect rising inflation can have on your funds.

I filmed up and down the country for the latest series of Right On The Money for BBC1 and it proved a sharp reminder that there are lots of us that are a little careless with our cash.

By that I don’t mean to suggest that we drop notes all over the place (although my research in the streets of central London shows that many DO drop coins). But I have learned that many people spend without thinking. And by doing that, they waste money by overspending or paying too much for stuff.

I know that thinking about what you spend can be a bit tedious, but look at it this way; spend more wisely and you’ll end up better off by hundreds, if not thousands of pounds.

Then the only problem you’ll have is how to spend the money. Invest it? Take a good trip? It’ll be up to you. And that’s the point I’m trying clumsily to make. If you can be a savvy spender, it will give you choices. The more money you have, the more choices you have.

The key to all this is planning. Plan your spending. If you do that, you won’t overspend and you won’t waste money. I’ve been surprised when we’ve filmed with different families how many people don’t make a shopping list. Without it, as I know from experience, you wander around a supermarket snapping up what you think may be bargains. But that simply means you overbuy and overspend.

Here’s a truth: if you find what you think is a bargain at a supermarket, the happiest person is likely to be the supermarket manager. That’s because they know you’ve fallen for one of their marketing tricks, such as buy-one-get-one-free. All retailers are in the business of flogging you stuff you didn’t want to buy. If you leave a shop with a bargain, the shop is likely to have got the best part of the deal. If you plan your shopping then you should only buy what you know you need. If something on your list is on special offer, then give a little cheer as you actually have found a bargain. But buying a special offer because it’s a “bargain” means spending money you didn’t need to. In other words, wasting money.

If you think this sounds like saving a few pennies here and there, think again. Some of the people we filmed shopping without a meal plan and a shopping list wasted huge amounts. We helped them halve their monthly grocery bill and in one instance that cut a profligate family’s food bill from around £300 a week to just £150. That freed up an extra £7,200 a year – enough for a luxury holiday, a big step towards a deposit on a home, or a decent nest egg to invest for the future.

Look, I don’t want to teach you to suck eggs, just be a bit more sensible about how you buy eggs. Plan all your spending and you’ll end up planning a decent load of extra money for yourself as well as avoiding throwing away huge quantities of food. Think again about all your daily expenses and you could discover a fistful of extra cash you could keep for yourself.

A couple of coffees every day at £2.50 a pop, for instance, may seem like a small and justifiable expense. But if you can cut them out you could save around £1,200 a year. I love coffee, but just buy a £2.50 bag of ground coffee and make it last a week by using the hot water in the office. That costs me around £120 a year, saving me more than a grand on café-bought coffees.

Food for thought? I hope so!

To recap, Simon’s top tips to save you money are:

  • Plan in advance to avoid overspending (there are plenty of apps out there that can help, for example Money Dashboard which helps keep track of all your accounts in one place)
  • Beware of special offers – only get them if they’re already on your list
  • Cutting even the small purchases can make a difference – look at your regular outgoings and see where you can make savings   

The views expressed here belong to the author and do not represent those of Funding Circle. Funding Circle is not authorised to, and does not, provide investment, tax, legal or regulatory advice.

The information and views contained here are provided solely for informational purposes and should not be construed as legal, tax, regulatory, accounting or investment advice, or as a recommendation or an offer or invitation by Funding Circle.

To the extent permitted by law, Funding Circle does not accept any liability for any loss or damage which may arise directly or indirectly from the use of, or reliance on, such information contained here.

If you have any questions, please speak to your professional adviser or seek independent specialist advice

Welcome to our fresh new look

Today we’re really pleased to announce that Funding Circle has a new look.

In just seven years, 32,000 small businesses have financed their growth and 69,000 investors have supported their future through our platform – which is something we’re very proud of. However, the opportunity to keep progressing is huge, and there is so much more that we can do to help thousands more customers turn their dreams into reality.

The heart of our new brand

There’s a common thread that connects small business owners, investors and the people who work at Funding Circle. We share a uniquely driven yet positive attitude to work and life, a restless determination to succeed and the tenacity to get there. We call this Made to do More.

Made to do More is an articulation of the approach we’ve always had at Funding Circle. We want to celebrate the people who’ve turned their passions into livelihoods, supporting their families and local communities. Ordinary people doing extraordinary things, pushing the economy forward.

Our aim is to become the first choice for small businesses and investors globally – helping you to create more jobs and earn more for your future. We’ve come a long way together, but our journey has only just begun and we’re really excited to see what the future will bring.


UK small businesses continue going for growth. July industry news

Just Eat puts loans on takeaway menu – The Times

We’re incredibly pleased to announce that we’ve joined forces with another leading UK tech firm, Just Eat, to help fuel the growth of their 30,000 takeaway restaurants. Petra, a trendy Turkish restaurant in North London, was one of the first businesses to benefit from the unique partnership. In need of financial support to progress with an expansion opportunity, owner Yilmaz Guney, was able to move forward in just a matter of days thanks to you and other investors. “Our business is booming.” said Yilmaz. Read more in City AM.

Funding Circle CEO Says Business Boomed After Brexit – Bloomberg

Small businesses like Petra are the driving force behind much needed job creation in the UK, which in turn fuels productivity and the economy. With small businesses accounting for 60% of private sector employment, it’s heartening to see their confidence hasn’t waned since the EU referendum last year with thousands of businesses still looking to invest and grow. Check out our CEO and co-founder Samir on Bloomberg where he talks about how business is thriving.

Fintech lingo explained – Reuters

Ever have trouble deciphering all of that FinTech lingo? As the sector continues to grow and develop, we’re seeing the use of new buzzwords increase at the same speed. This helpful article in Reuters decodes and explains the lingo and terminology that FinTech companies and the wider ecosystem are increasingly using. From cryptocurrency and bitcoin, to insurtech and open banking, this piece is sure to make you an expert on all things FinTech.

Revisiting the first business to borrow through Funding Circle – Blog

And lastly, in 2010 John Henry, founder of Sustainable Direction, an environmental consultancy, was the first business to come to Funding Circle for finance. Six years later, he came back to us and borrowed a further £54,000 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.” Read his full success story on our blog.