Your September Review – Insight and Analysis

Your September Review

On 18th September we’re launching an exciting new lending experience to make lending to businesses through Funding Circle simpler, better and fairer for all investors. Read about the two new lending options on our blog or dive in to your monthly analysis below.

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!

August industry news

Written up in Bloomberg, Funding Circle co-founder and CEO Samir Desai met borrower By the Horns brewery to find out how the EU referendum has affected their business. Read this and more in last month’s industry news.

Monthly trends

These graphs show the most recent activity on our platform.

You’ve helped more than 8,500 small businesses access finance in the last 6 months…

Number of loans September

Totalling over £605 million lent

Value of loans

August 2017 sector breakdown

Amount lent to each sector

August sector

August 2017 regional breakdown

Amount lent to each UK region

Region August

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 31st September 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.

 

Rob McCorquodale