Introducing your new statistics page

At Funding Circle we are committed to providing you with access to easy to understand loan performance information. Today marks the next phase of this commitment as we launch a new and improved statistics page, which will be updated every three months and will provide you with a clearer and more accessible view of how loans are currently performing.

Exploring your new statistics page

Alongside our global lending figures, your new statistics page is designed to allow you to easily understand three key areas of information:

  • Lending – How much have investors in the UK lent to businesses?
  • Returns – How are loans currently performing in the UK?
  • Businesses – What kind of UK businesses are you lending to?

Providing you with the full picture of loan performance

The performance information we provide you on our statistics page uses our most up-to-date estimates, or projections. It’s important to remember that over an investment period there will always be some businesses who are unable to repay their loans. To reflect this, our projections are updated every three months using the actual performance data experienced so far. You can see an example of how this works in the chart below:


The projected return is the return we estimate loans will achieve over their lifetime. This is an annualised number and is updated every three months. It is calculated using the actual return received to date, plus the estimated return for outstanding loans that have not yet been fully repaid.

The return is shown as a range to reflect that the actual number of businesses who are unable to repay their loans could be higher or lower than estimated. As loans are repaid, the range of return shown will narrow and will be updated to reflect actual performance. Full explanations of all our statistics can be found in our definitions section on the statistics page.

Presenting you with data in a relevant format

It’s important that the data we provide continues to be presented in a way that’s relevant to investors’ needs. As part of this latest update we have withdrawn the downloadable loanbook.

While the loanbook was a useful resource for early-investors lending through Funding Circle, as the platform has grown and become popular with a broader group of investors, the number of people downloading it has fallen significantly. For example, approximately only 0.3% of investors downloaded the loanbook in the last month. It’s important that you are still able to access loan-by-loan information on the businesses you are lending to, which you can download from your Funding Circle account.

Validating our performance data

As part of our commitment to providing transparent loan information to investors, we have partnered with AltFi Data. AltFi Data are independent and well-respected industry experts with deep knowledge of online lending, and they will provide independent verification of the figures we provide to you. They will review the loan information every three months to ensure it is accurate and up to date.

If you have any questions or would like more information, please don’t hesitate to get in touch.

Enjoy lending,

The Funding Circle team

May Round-Up

Welcome to May’s round-up. This month we have usual stories and advice, plus thoughts on the Royal Wedding from a bridal boutique you’ve helped to fund. Read on below to find answers to more of your most asked questions, plus we look at bad debt, defaults and why you shouldn’t be afraid of them.

Business owner quote of the month

“This has provided a cash flow lifeline to my business, enabling me to fund new staff members and build my business” — Andrew.

Investor quote of the month

“I am really enjoying being a lender and love the way I can watch my investment grow” — Diane.

7 steps to planning your dream wedding

To celebrate the coming together of Prince Harry and Meghan Markle, we bring you 7 businesses to plan the wedding of your dreams. From finding the perfect dress to booking the ideal honeymoon, these businesses have all been able to flourish thanks to your lending.

With the wedding only a day away, we also spoke to bridal boutique and Funding Circle borrower Froufrou for their thoughts on Meghan’s dress:

“We’re hoping she goes more demure and stylish compared to the more traditional gown of Kate Middleton. We love the embellished gowns from potential designers Ralph & Russo, but whatever she chooses will be breathtakingly beautiful!”

Top 5 investor questions answered – part 2

Our investor support team are on hand to help with any queries you have about your account, how lending works or Funding Circle in general. Continuing from last month’s article, we have more of the answers you’re looking for in your top questions answered – part 2.

Bad debt, defaults and why not to be afraid of them

In this blog, we describe what these terms mean and discuss how you can reduce their impact to still earn a good return at Funding Circle. Find out more here.

April round-up

In case you missed, here’s our April round-up. In this blog you can find industry news, business success stories, your top 5 questions answered and changes and opportunities for the new tax year from Simon Read.

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

Enjoy lending, the Funding Circle team

April Round-Up

In this month’s round-up you can find industry news, business success stories, your top 5 questions answered and finally changes and opportunities for the new tax year from Simon Read. Read on below to find out more.

Trustpilot quote of the month

“We really like what Funding Circle are doing. From our initial enquiry, funds had cleared into our bank within 7 working days. We can now focus on growing our business. Thank you Funding Circle – for doing the work the banks should be doing!”

Bobbin Bicycles shows how to keep the export wheels turning

It’s great to see one of the businesses in our community featured in The Sunday Times, highlighting how selling overseas can help small businesses thrive.

Founded in 2007, Bobbin Bicycles supply a range of trendy leisure bicycles for everyday cyclists across the world. In 2016, they borrowed £250,000 through Funding Circle to buy stock for their new online sales channel. They’ve recently come back for second loan of £150,000 for working capital. Thanks to your support, we can continue to help small businesses, like Bobbin Bicycles, and push the economy forward.

Top 5 investor questions – answered

Our investor support team are on hand to help with any queries you have about your account, how lending works or Funding Circle in general. We spoke to the team to find out the most common questions you were asking. Here are your top 5 questions answered.

March industry news

In this issue, we discuss how technology has sparked a cultural shift within financial services, and how businesses are turning away from banks for financial support. Read more on this in our industry news.

A new tax year means new opportunities – Simon Read

To help you get the most from your finances, we regularly bring you a column from Simon Read, a personal finance expert. In this issue, Simon discusses how the new tax year can bring new opportunities.

March’s Lending Impact and Borrower Stories

In case you missed it, here’s last month’s post. In March’s lending impact we met Michaela, the founder of Arapina Bakery, in our latest case study video.

By lending to businesses, your capital is at risk.

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

Enjoy lending, the Funding Circle team

Your top questions – answered

Our investor support team are on hand to help with any queries you have about your account, how lending works or Funding Circle in general. We spoke to the team to find out what were the most common questions you were asking. Read on below to find the answers to your top 5 questions.

1. Can I move money from a Classic to an ISA account?

Unfortunately you can’t transfer either loan parts or available funds from your Classic account to your ISA.

ISA regulations state that investors can only make cash subscriptions into an Innovative Finance ISA. Instead, you must first sell your loan parts to other investors, then withdraw the funds raised into your nominated UK bank account. You can then transfer the funds into your ISA account.

Likewise if you have available funds in your Classic account, you are unable to transfer directly to your ISA. Again, you will have to withdraw and transfer in from your bank account.

The same is true if you want to move funds from your ISA to your Classic account.

2. Why can’t I sell all my loan parts?

Although the majority of loan parts will typically be sold within 24 hours, to ensure all investors are protected and treated fairly, we have specific rules and restrictions on which loans can be sold. Investors can’t sell loan parts that:

– Have had their risk band removed (for example when a CCJ has been registered against the business)
– Are late (currently behind on repayments) or are in default
– Have only one payment remaining

The first two restrictions are often temporary. If a business gets back on track with their repayments and there are no remaining issues, we can reinstate the risk band and the loan part can be sold.

As a result, investors can only sell loans that are in good health, which helps to protect the investors who buy them.

3. Why is my money not being lent out?

Our automatic lending tool is designed to help more than 70,000 investors lend their funds to businesses quickly and fairly. We have a dedicated team who monitor the balance between the supply of investor funds and demand from businesses. Liquidity has been excellent in recent months with approximately 97-99% of the total amount of investors’ funds lent out to businesses at any time.

It’s important that the remaining available funds are allocated fairly, so all investors have the chance to lend their funds to businesses. To help achieve this, the lending tool is more likely to match investors who have a large proportion of their funds available.

It’s worth noting that the lending tool will typically start matching your available funds once they reach 0.5% of your portfolio, and you will usually have a small proportion of funds not lent at anytime. Lending will be slower at weekends as new loans are only listed within working hours, but you may still purchase loan parts that are being sold by other investors.

In addition, if you are lending through our Conservative lending option, it can take longer to lend all of your funds out to businesses as you are only lending to our A+ and A risk bands, rather than across all businesses.

4. Why do I get negative interest at the beginning of lending?

This is a common occurrence when investors first start lending and is not a cause for concern.

When lending through Funding Circle, you will typically lend the majority of your funds to businesses who are taking out a new loan. However, you will also use some of your funds to purchase loan parts that are being sold by other investors.

As loan parts are often sold mid-way between repayments, it’s important that both the seller and buyer of a loan part receive the interest owed for each day they hold it for.

As a result, when you buy a loan part, you’ll pay the seller the amount of interest owed to them since the business last made a repayment. This interest will be taken from your available funds, and may show as a negative amount on your account total if you are just starting to lend. When the business makes their next repayment, you’ll receive a full month’s worth of interest.

5. Can I split my funds between Conservative and Balanced?

Only one lending option can be applied to your account at a time, so funds cannot be lent out using both Conservative and Balanced options simultaneously.

However, you could lend out half your funds using one option, then switch to the other and lend out the rest. This would split your funds across the two options, although any repayments would then be lent according to your current lending option.

If you’d like to change your lending option, you can do so at any time via the “Lending settings” tab.

More information can be found in our investor guide. Remember, by lending to businesses your capital is at risk.

Your April Review – Insight and Analysis

In March, you and other investors lent over £123 million to UK businesses, allowing them to achieve their business goals. Dive in below for your monthly analysis.

Last month, you helped over 1,800 UK businesses grow and take new opportunities — thank you for your continued support! Together we can continue to drive energy into the UK economy.

How Funding Circle is keeping the little guys in the loop City A.M.

“When I step into the lively hive that is Funding Circle’s office, it’s a breath of fresh air” says Katherine Denham, writer at City A.M. This article highlights our culture, our team and how our investors are supporting thousands of small businesses across the county.

These graphs show the most recent activity on our platform.

You’ve helped more than 10,500 small businesses access finance in the last 6 months…

 

Totalling over £701 million lent

March 2018 sector breakdown

Amount lent to each sector

March 2018 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. 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. Our automatic lending tool will help you diversify by splitting your investment across lots of businesses. We suggest lending £2,000 or more, so you can lend to at least 100 businesses, with no more than 1% going to each one.  

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 29th March 2018  For further information on why Funding Circle defaults loans you can read our FAQ here.

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

Up next in April 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 suggestions we’d love to hear them.

Enjoy lending, the Funding Circle team

*Data from CEBR report

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.

March’s Lending Impact and Borrower Stories

In this month’s lending impact, we bring you our latest case study video featuring an award-winning bakery. We’ve also got your Easter weekend covered, with five booming businesses who can help you have a great weekend. Dive in below.

We’re pleased that so many of you are already benefiting from tax-free returns with the Funding Circle ISA. Thanks to your support, we can continue to help businesses take opportunities, create new jobs and drive energy into the economy.

Trustpilot quote of the month

“When others turned their back, Funding Circle helped us turn our dreams into reality. Thanks to their trust in us we are now able to expand our business and move things forward. We can’t thank them enough. If you wish to fulfil your business ambitions then there’s only one place to go, FUNDING CIRCLE!”


In January we introduced Michaela, the founder of healthy lifestyle bakery, Arapina. Originally from Crete, Michaela grew up eating natural and healthy home cooked food. After moving to London, Michaela’s passion for food led her to trade in food markets in 2013. She began with one single product – the Arapina chocolate cake – but as demand kept growing so did their menu. In May 2017, Arapina accessed finance through Funding Circle to expand their business and have since doubled their turnover. Watch the case study video to learn more about their exciting journey.

Make the most of your Easter break with friends and family

The long Easter weekend is nearly here! Here are five Funding Circle borrowers who can help you make the most of the long break. From visiting a chocolate factory to feeding the farm animals, there’s something for everyone. All of these businesses were able to flourish thanks to your support.

February’s Lending Impact and Borrower Stories

In case you missed it, here’s last month’s post. In February’s lending impact we met Jake, the founder of Bristol Bicycles. Additionally, we announced that the University of Huddersfield has lent to over 2,000 UK business through our platform. Finally, we listed five Funding Circle borrowers to keep the Winter Olympics spirits high.

Up next

At the beginning of April we’ll publish our Insights and Analysis blog to review March’s activity, including statistics from across the platform and helpful tips to 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 suggestions we’d love to hear them.

Enjoy lending, the Funding Circle team

Your March Review – Insight and Analysis

Last month you and other Funding Circle investors lent over £113 million to UK businesses to help them grow and develop. Dive in below for your monthly analysis.

We’re also very proud to announce we are 16th in The Sunday Times 100 Best Companies to Work For 2018. You can see the full list here.

In February, you and other investors helped over 1,700 UK businesses take new opportunities and reach their goals — thank you for your continued support!

Meet our Collections and Recoveries Team

Our aim at Funding Circle is for you to earn stable returns when lending directly to businesses. Dive into our Q&A with Andrew Jackson, Head of Collections and Recoveries in Europe, to find out how the team has evolved over the years to ensure the best possible outcome for you and other investors.

These graphs show the most recent activity on our platform.

You’ve helped more than 10,200 small businesses access finance in the last 6 months…

Totalling over 678 million lent

February 2018 sector breakdown

Amount lent to each sector

February 2018 regional breakdown

Amount lent to each UK region

LoansDefaultedLastWeek

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. Our automatic lending tool will help you diversify by splitting your investment across lots of businesses. We suggest lending £2,000 or more, so you can lend to at least 100 businesses, with no more than 1% going to each one.  

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 1st March 2018  For further information on why Funding Circle defaults loans you can read our FAQ here.

Collections

HowItWorks

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

Up next in March we’ll be looking at the impact your lending is having on the UK economy. We’ll also bring 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 suggestions we’d love to hear them.

Enjoy lending, the Funding Circle team

*Data from CEBR report

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.

February’s Lending Impact and Borrower Stories

In this month’s lending impact, find out how our partnership with Huddersfield University has helped UK businesses grow and develop. Next, meet the founder of Bristol Bicycles in our case study video and finish by discovering five Funding Circle businesses to keep you in the winter Olympic spirit.

GreatMonthFor

The University of Huddersfield has lent to over 2,000 UK business through its partnership with Funding Circle. In 2013, the university became the first to lend directly to businesses through the platform.

The partnership has created many opportunities for students through entrepreneurship scholarships. One of the many businesses to benefit from the university’s lending is Ushiwear, a British clothing brand owned by husband and wife, Neil and Jilly Kapusi. Read more on our blog.


Meet Jake, the founder of Bristol Bicycles. Ten years ago, Jake launched his own business, offering an affordable and high quality bicycle workshop. A few years on, Jake began designing and manufacturing his own line of bicycles and in 2015 launched Bristol Bicycles.

To support the growth of his business, Jake received expert coaching from Gary, a Business Coach at ActionCOACH. Having worked with Funding Circle for over 18 months, Gary recommended finance through Funding Circle to help boost cash flow and expand Bristol Bicycles further. Watch the case study video to find out how this partnership has allowed Jake to achieve his business goals.

Get into the Olympic spirit!

Last Sunday marked the end of the 2018 Winter Olympics, but the fun doesn’t have to stop there! We’ve put together a list of five Funding Circle borrowers to keep your spirits high. From synthetic ice rinks to ski and snowboard gear, all of these businesses were able to expand thanks to your lending. Dive in here.

January’s Lending Impact and Borrower Stories

In case you missed it, here’s last month’s post. In January’s lending impact we introduced the founder of Arapina and listed five businesses to help you stay in shape in 2018.

Up next

At the beginning of March we’ll publish our Insights and Analysis blog to review February’s activity, including statistics from across the platform and helpful tips to 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 suggestions we’d love to hear them.

Enjoy lending, the Funding Circle team

A thriving bike shop, thanks to you and ActionCOACH

Following his passion for bikes, 10 years ago Jake Voelcker took a leap and launched his own business: Jake’s Bicycles. His friendly and approachable workshop in the heart of Bristol offers affordable and high-quality service for all levels, from occasional riders to sports enthusiasts.

After a few years of strong growth, Jake saw the potential to inspire even more people to get into cycling. Through his experience servicing bikes and discussions with customers, he started designing and manufacturing his own line of bicycles with the goal to provide a comfortable cycling experience. In March 2015 he launched his own brand, Bristol Bicycles, entirely hand built and assembled in his workshop, offering the high attention to detail that mass production factories can’t replicate.

However, building a successful business is far from simple and external support was necessary to identify key focus areas. Gary, a Business Coach at ActionCOACH, has now been working with Jake for more than a year, providing guidance on how to develop the brand as efficiently as possible.

Based on the business evolution and Jake’s objectives, Gary quickly realised Bristol Bicycles needed a cash flow boost to grow. Having worked with Funding Circle for over 18 months, he did not hesitate to recommend us and was confident Jake would get a fast decision on his application.

Learn more about Jake and Gary’s experience using Funding Circle in the video below.

Since partnering in 2016, our relationships with the different business coaches from ActionCOACH has allowed many small businesses access more than £4 million in lending. We look forward to helping even more together in the years to come.

Are you interested in lending to businesses like Bristol Bicycles?

Lend alongside 77,000 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.

Partner with Funding Circle

We work with a wide range of corporate and bank partners to help UK businesses access much needed finance. Email our Partnerships team at ukpartners@fundingcircle.com to find out how we can work together.

Your February Review – Insight and Analysis

YourFebReview

Last month Funding Circle investors, like you, lent over £117 million to UK businesses to help them grow and develop.

Dive in below for your monthly analysis and read the latest blog by Simon Read, a personal finance expert. With extensive experience in helping people making the most of their money, Simon discusses saving for your summer holiday.

JanLendingFigures

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!

FebLendingBlock

Read between the lines: Saving for your summer holiday

Are the short nights and cold days making you want to book a holiday away in the sun? Dive in for Simon Read’s top tips for ensuring you can plan and save efficiently for the holiday you’ve been dreaming of.

MonthyTrends

These graphs show the most recent activity on our platform.

You’ve helped more than 9,700 small businesses access finance in the last 6 months…

 

FebVolume

Totalling over £650 million lent

 

FebValue

January 2018 sector breakdown

Amount lent to each sector

FebSector

January 2018 regional breakdown

Amount lent to each UK region

FebRegion

LoansDefaulted

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. Our automatic lending tool will help you diversify by splitting your investment across lots of businesses. We suggest lending £2,000 or more, so you can lend to at least 100 businesses, with no more than 1% going to each one.  

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 2nd February 2018For further information on why Funding Circle defaults loans you can read our FAQ here.

Collections

HowItWorks

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

Up next in February 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

*Data from CEBR report

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.

January’s Lending Impact and Borrower Stories

JanInvestorImpact

This month’s lending impact is all about kick-starting a healthy new year. First, we meet Arapina, an award winning bakery offering guilt-free sweet treats made from all natural ingredients. Next up, get in shape with five Funding Circle businesses who were able to grow thanks to your lending.

GreatMonthFor

This month we’re proud to announce we took home 3 awards at the AltFi Awards 2017. This included the coveted Editor’s Choice Award, as well as P2P Business Platform of the Year and Best Clarity of Data. With your continued support, we strive to grow our success even further in 2018.

JanSuccessStory
Arapina

Meet Michaela, the driving force behind the award winning healthy lifestyle bakery, Arapina. Originally from Crete, Michaela grew up eating locally sourced, natural and healthy home cooked food. After moving to London, Michaela found it increasingly difficult to find sweet treats that satisfied both her vegan diet and her taste buds. As a result, Michaela, or “Lady M” as she’s known, set up Arapina to offer delicious guilt-free treats made from the best natural ingredients.

Since 2013, their mission has been to carve a path away from the sugary, artificial produce found in many bakeries and instead offer people a healthy, yet delicious, alternative. Originally, Arapina traded with only one type of cake – the famous chocolate Arapina. As the years progressed and crowds grew fond of Arapina’s delectable delights, they decided to expand their menu. Today, their decadent cakes and desserts cater for all dietary requirements, including dairy free, gluten free and vegan recipes.

Thanks to your continued support, Michaela and the team were able to purchase new equipment after relocating into their own production and retail unit.

Stay tuned as we’ll be bringing you a behind the scenes case study video very soon.

Yoga, Pilates or Bodybarre? How will you stay in shape in 2018?

It’s that time of year when the decision to become fitter is top of everyone’s to do list. Many of the world’s most well-known and successful entrepreneurs consider yoga, pilates and other forms of exercise as an essential ingredient for their continued success. Head to our blog to discover five businesses to help you get in shape this year. All of these businesses were able to achieve their goals thanks to your lending.

December’s Lending Impact and Borrower Stories

In case you missed it, here’s last month’s post, where we met the founder of the Creative Whisky Company in our latest case study video and took a tour through small business past, present and future.

Up next

At the beginning of February we’ll publish our Insights and Analysis blog to review January’s activity. This includes statistics from across the platform and helpful tips to 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 suggestions we’d love to hear them.

Enjoy lending, the Funding Circle team

Yoga, Pilates or Bodybarre? How will you stay in shape in 2018?

The decision to become fitter is usually top of people’s new year’s resolutions and for good reason. Many of the world’s most well-known and successful entrepreneurs consider yoga, pilates and other forms of physical fitness as an essential ingredient for their continued success. These 5 local businesses are helping the UK get in shape, so where will you start?

Record your every move at Be X Fitness

Established in 2013, this Barnsley-based fitness center offers team workouts using high tech equipment so you can get the most out of your workout. Thanks to My Zone, the connected tracking technology, users can record their every move, analyse performance and receive personalised training advice from coaches.

running-shoes

To support growth, Kevin Yates applied for a business loan through Funding Circle in November 2017. They accessed £106,000 in less than one week, meaning they could take on the next opportunity quickly.

Physio by Pea Green to keep you energised

Stephanie Smith launched Oxfordshire-based Pea Green Physio back in 2008. Eight years on she decided she wanted to expand into yoga and pilates and needed a business loan to open a studio. Pea Green now offers yoga and pilates classes alongside sports massages and rehabilitation therapy after raising £25,000 through Funding Circle.

yoga-park

Rediscover fitness with Paola’s Bodybarre

Forget what you know about traditional fitness classes and embrace Paola Di Lanzo’s multidisciplinary workout methods. From light sessions focusing on technique, alignment and flexibility, to high intensity training and weight-lifting, the wide range of classes will help you find the exercise you’re looking for. After opening her first studio in Fulham in 2014, Paola’s BodyBarre is now available in 7 other pop-ups, affiliated studios and private members clubs around London. Paula expanded the business with a £53,000 loan to open a new flagship studio in Sloane Square.

Paola's Bodybarre Studio

Yoga gets you in the right headspace

The meditation classes at London-based Yogacentric are said to improve your mental focus by connecting your mind and body. If meditation isn’t for you and you’re looking for something more active, try their hot yoga or one to one sessions. All levels are welcome.

yoga-outside

Daniel Percival came to Funding Circle in 2016 as he wanted to grow his London studio. He secured £53,200 over 5 years to finance working capital and the fit-out of a second location.

Keep moving at Alderley Pilates

Jan and Peter Bowen founded their pilates business in Cheshire 15 years ago. The studio brings talented teachers and enthusiasts of all levels together in a friendly and relaxed environment. All of their trainers are certified by Body Control Pilates, the largest European professional pilates’ organisation.

pilates-workout

Alderley Pilates first came to Funding Circle for a business loan in 2014. Finance from Funding Circle has helped them refurbish their premises and upgrade their website to grow the business.

Are you interested in lending to businesses like these?

Lend alongside 76,000 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. 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 32,000 businesses in the UK have accessed finance through Funding Circle. You could boost your cash flow, refurbish premises, hire staff and much more. Check if you qualify for a business loan online in just 30 seconds.

Make the most of your lending experience

Here are some of our key tips to help you get the most from your lending experience as a Funding Circle investor.

Set yourself up to earn a more stable return

Data at Funding Circle shows that investors who diversify by lending small amounts to many businesses are more likely to earn a stable return. To help illustrate this, the below chart shows the minimum annualised return earned by 95% of investors lending for at least a year, by the number of businesses they have lent to.

The chart shows that 95% of investors who have lent to at least 100 businesses equally for a year or more have earned at least 4% per year after fees and bad debt. In fact, since 2010 every single investor who has followed this level of diversification has earned a positive return. (Data correct as of 1st October 2017).

Becoming diversified has never been easier, as our lending tool automatically lends no more than 0.5% of your portfolio (subject to a minimum of £20) to each business. We suggest building a portfolio of at least £2,000 to help you lend to at least 100 businesses.

Check your Lending Settings are right for you

When lending through Funding Circle you can choose from one of our two lending options, Balanced or Conservative. Both options will allow you to quickly and easily build a portfolio of creditworthy businesses depending on your personal preference:

  • Balanced – lend to the full range of creditworthy businesses, aiming to achieve an attractive, stable return.
  • Conservative – focus on businesses that have been assessed as lower risk, but with a lower projected return.

It’s important that the lending option you have chosen is right for you. You can review and change your chosen option in the Lending Settings page when logged in to your account. This is also where we will display the current projected return for each option.

Boost your earning power with the Funding Circle ISA

The Funding Circle ISA is now available to all current investors (as of 3rd April 2018), subject to eligibility requirements. The ISA works just like your Classic Funding Circle account, but the interest you earn is tax-free. This could provide you with a significant boost to your earning power. For example, if a higher rate taxpayer lends £20,000 through the Funding Circle ISA and earns a one-year return of 7.2%* after fees and bad debt, their post-tax earnings after one year could increase from £864 to £1,440.

If you haven’t yet opened a Funding Circle ISA, you can do so by logging in to your account. Tax rules and relief can change depending on your personal circumstances, and you can find out more about the features and risks of lending through a Funding Circle ISA here.

Recognise bad debt as a normal part of lending

When lending to businesses there will always be some who are unable to repay their loan. We call this bad debt, and we account for it when calculating projected returns. Bad debt is rarely spread out evenly over the course of the loan term, and tends to happen during certain periods of a loan’s lifetime. You can see this from the chart below, which shows the annualised return, after fees and bad debt, earned by an example investor over a five year investment period:

In our example, based on five years of loan performance data, an investor lent £10,000 across all the loans originated through Funding Circle in 2012. Each month, the loan repayments and interest received were lent to new borrowers.

You can see that in this example most bad debt occurred during the period marked as phase 2, but then reduced as loans continued to mature and recoveries arrived. You can read more about how returns can change over time in our blog, but the important thing to remember is that a decrease in your return due to bad debt is an expected part of the lending experience, and will typically stabilise as your loans mature. Remember past performance is not a guarantee of future returns.

Think long-term

A modest regular contribution and a patient approach can have extraordinary results. For example, if you start with £10,000 in your Funding Circle account and set up a standing order for £100 a month, after 30 years you could have an account worth over £200,000**. Find out more about setting up a standing order, or see how your own portfolio could grow over time with this compound interest calculator.

It’s important to remember that as you lend to your own individual portfolio of loans your return may be higher or lower, and by lending to businesses your capital is at risk. Tax rules and relief can change depending on your personal circumstances.

We hope these tips help you get the most out of lending to businesses through Funding Circle. If you have any questions about your account, please get in touch.

Enjoy lending,

The Funding Circle team

*The projected return is an estimate of what investors could earn on the Balanced lending option (as of 10th January 2017), after fees and bad debts, but before tax. It uses the loans we expect to be funded on the platform, and the estimated bad debt rate of those loans based on our all-time loan data. See the full calculation here.

**Returns are based on the annual projected return of 7.2% for investors lending through the Balanced lending option (as of 10th January 2017). Returns are compounded monthly and are after fees and bad debt but before tax. Based on this, an account worth £10,000 with a standing order of £100 a month would be worth £213,837.61. Returns are calculated using a compound interest calculator.  

Your January Review – Insight and Analysis

YourJanuaryReview

In 2017, we helped over 10,000 UK businesses borrow over £1 billion. This year we want to do even better, helping businesses and investors achieve their goals, create new jobs and drive the economy forward. Here’s to a great 2018! Dive in below for your December review.

DecemberLendingFigures

Last month, you and other investors helped over 1,400 UK businesses take new opportunities and reach their goals — thank you for your continued support!

LendingFigures

December highlight: Small business infographic

Did you know there were more than 30,000 street sellers in London in the late 1800s? Was this the start of small businesses as we know them? In case you missed it, take a tour through small business past, present and future in our shiny new infographic.

MonthyTrends

These graphs show the most recent activity on our platform.

You’ve helped more than 9,300 small businesses access finance in the last 6 months…

Volume

Totalling over £630 million lent

Value

December 2017 sector breakdown

Amount lent to each sector

Sector

December 2017 regional breakdown

Amount lent to each UK region

Region

LoansDefaulted

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. Our automatic lending tool will help you diversify by splitting your investment across lots of businesses. We suggest lending £2,000 or more, so you can lend to at least 100 businesses, with no more than 1% going to each one.  

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 4th January 2018  For further information on why Funding Circle defaults loans you can read our FAQ here.

Collections

HowItWorks

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

Up next in January 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

*Data from CEBR report

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.

 

Your December Review – Insight and Analysis

Your December Review

Your lending has reached £3 billion in the UK! November was also a record month, with £129 million lent to small businesses in the UK.

While it’s fantastic to keep growing, the important story is the impact we can have on the economy. That’s why we’re very excited to say that in Q3 this year, for the first time more net lending (total lending minus repayments) was done through Funding Circle to small businesses in the UK than the UK’s major high-street banks combined*. Thanks to your support, we can continue to have a positive impact on the economy, helping thousands of businesses expand and achieve their ambitions.

November 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!

November Block

November highlights: launching the Made to do More campaign

At Funding Circle we celebrate the big thinkers and those who decide to get up to tackle something new. Over half of Brits (56%) think they have the skills to run their own business, but only 13% believe they’re entrepreneurial. If everyone believed they were Made to do More, we could boost the economy and ignite even more opportunities. Head to our blog to find out more about our most recent campaign.

MonthlyTrends

These graphs show the most recent activity on our platform.

You’ve helped more than 9,300 small businesses access finance in the last 6 months…

 

Volume

Totalling over £650 million lent

Value

November 2017 sector breakdown

Amount lent to each sector

Sector

November 2017 regional breakdown

Amount lent to each UK region

Region

LoansDefaulted

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. Our automatic lending tool will help you diversify by splitting your investment across lots of businesses. We recommend lending £2,000 or more, so you can lend to 100+ businesses, with no more than 1% going to each one.  

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 30th November 2017.  For further information on why Funding Circle defaults loans you can read our FAQ here.

Collections

HowItWorks

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

Up next in December 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

*Bank of England data

**Data from CEBR report

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.

How to have Christmas in Lapland in 2022

Christmas is all about tradition. From turkey and cracker jokes to arguing over who gets to be the boot in monopoly, every family has their own. While we all love our favourites, what if one year you did something different? Treat the family to a Christmas they’ll never forget.

Make regular contributions to your Funding Circle account and you could be going to Lapland to meet Santa and Rudolph in their own back yard.

Christmas

According to the Bank of England, a typical household spends over £500 extra in December, so even modest savings can make a difference. With a little planning you won’t need to get anywhere near your credit card. Contribute regularly for a longer period, and you could have the Christmas of a lifetime in a few years.

In just 5 years you could have:

Christmas in a country house

Fancy hosting your own Downton Christmas special? Put away £20 a month and you could have £4,312.57 – enough to rent a country house for your extended family. You could even hire caterers so you can sit back and relax.

Christmas in Lapland

Put aside £100 a month and you could have £10,077.80. That’s enough to treat the whole family with a trip to Lapland! Meet Father Christmas and ride a reindeer-led sleigh under the starlit sky. It will be a Christmas they’ll never forget.

Christmas in Australia

Want to swap your hat and scarves for flip-flops and swimming shorts? Transfer £200 a month and you could have £17,284.33, enough to take the family for a dream Christmas holiday in Australia. Have a beach BBQ on Christmas day, soak up the sunshine, and maybe even watch a winter Ashes series (from behind the sofa).

These figures are estimates based on lending an initial £2,000 deposit through the Balanced lending option, and regular transfers for 60 months. Please note, forecasts are not a reliable indicator of future performance and your capital is at risk.  

By keeping lending active on your account over several years, you’ll see the increasing benefit of compound returns as your repayments are continually lent out again. If you add in a little extra each month it accelerates this process even more, helping to maximise your earning potential. To get started, follow these 3 simple steps to set up your standing order today.

We hope you have found this useful, and if you have any questions about your account please get in touch.

Enjoy lending,

The Funding Circle team

Remember, by lending to businesses your capital is at risk.

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.

The Funding Circle ISA is on its way!

We’re excited to announce that from Thursday 30th November we will start rolling out the ISA account to all current investors. This means soon you will be able to earn attractive, stable returns tax-free.

How will the ISA account work?

The Funding Circle ISA will work just like your existing Funding Circle account, while also providing you with:

  • A boost to your earning power – the interest you earn with an ISA is tax-free. As an example, if a higher rate taxpayer lends £20,000 through the Funding Circle ISA and earns a one-year return of 7.5* after fees and bad debt, their post-tax earnings after one year could increase from £900 to £1,500.
  • Flexibility the ISA account is a flexi-ISA. This means you can withdraw any available funds without affecting your annual £20,000 ISA subscription limit, providing you transfer them back in by the end of the tax year.

     

  • A simple investment experiencecreating an ISA account takes just a few minutes, and can be opened from your existing Funding Circle account using the same login details. Once opened, choose one of our two lending options and start lending.

     

  • An easy way to build a well-diversified portfoliowe recommend lending £2,000 or more, so you can spread your funds across at least 100 businesses for a more stable return. If you would like to start with less, we are introducing an initial minimum card transfer of £1,000 when opening an ISA account or a new Classic account.   

     

  • No fees to access your money – as with your existing Funding Circle account there are no fees for selling your loans

     

As part of this process we’re also renaming existing Funding Circle accounts as the Classic account. Remember, by lending to businesses your capital is at risk, while tax rules and relief can change depending on your personal circumstances.

Providing every investor with the best possible lending experience

Based on the conversations we have had with investors, we expect the ISA to be popular. To manage this interest in the fairest way, and to ensure there are enough lending opportunities on the platform for all investors to continue earning attractive, stable returns, we will be opening up the ISA Account to all current investors (those who created an account before 23rd November) in the following order:

  • Investors who are actively lending (have lent to a business since 1st May 2017)
  • Investors not actively lending but who have previously transferred in funds
  • Investors who have not previously transferred in funds
  • New investors and those who have opened a Classic account after 23rd November 2017

We will open the ISA to each group of investors in the order their account was created. We will keep you updated on our progress over the next few months.

We’ll email you when your ISA is ready to be opened

Once you’ve received your email confirming you can now open your ISA, you’ll be able to login to your account through our website and create an ISA account in a few easy steps, subject to eligibility criteria:

To help manage demand, initially you won’t be able to transfer any existing ISA subscriptions you hold to your ISA account. You will be able to transfer your Funding Circle ISA to another ISA provider, although it’s important to remember that loan parts that can’t be sold won’t be transferred and will no longer be eligible for tax-free interest.

Once all current investors have had an opportunity to create an account, we will launch the ISA to new investors. Following this, we will start to rollout the ability for you to transfer in existing ISA subscriptions.

Although you can manage both an ISA account and a Classic account using the same login, it’s important to remember they are separate accounts that will lend to a separate portfolio of loans.

Transferring loan parts from your Classic account to your ISA account

Due to regulatory restrictions, you are unable to transfer loan parts directly from your Classic account to your ISA account. However you can sell your loans quickly and easily to other investors, providing they aren’t late or experiencing any credit issues, before withdrawing your funds to a UK bank account and then transferring them to your ISA.

We’re pleased to be able to provide you for the first time with attractive, stable returns tax-free. You can find out more about the ISA account, and register your interest if you are not currently lending through Funding Circle, here. More information can also be found in our FAQs. If you have any questions 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 by lending through the Balanced lending option as of 23rd November, 2017. You can see how the return is calculated here. Your actual return may be higher or lower, and by lending to businesses your capital is at risk.

November’s Lending Impact and Borrower Stories

.NovemberInvestorImpact

In this month’s Lending Impact, watch our latest case study video of The Strings Club, check out the article most read by our business community, and find out how you can prepare for The Ashes with five Funding Circle borrowers.

ThisMonthsTopArticle

Do you work harder than Mark Zuckerberg?

Consider yourself a hard worker? Find out how your working week stacks up against the likes of teachers, pilots, professional footballers, small business owners and corporate CEOs in our blog.

NovemberSuccessStory
StringsClub

In our latest case study video, meet Amy, Director of The Strings Club. In 2012, Amy set up the business with one simple mission: to educate and inspire children through music. Watch the video to find out how your lending has helped Amy grow and develop her business, which is now an award-winning musical education group for children aged 4-11. 

Watch The Ashes like a true Lady or Gentleman

With the start of one of sport’s greatest rivalries this Thursday, we’ve put together a list of five businesses that will help you celebrate The Ashes in a true English manner. All of these businesses were able to expand and develop thanks to your lending. Dive in here.

October’s Lending Impact and Borrower Stories

In case you missed it, here’s last month’s post, where we met Tom & Sian, the Founders of Bobbin Bikes, and listed our top five essentials to prepare for Bonfire Night.

Up next

At the beginning of December we’ll publish our Insights and Analysis blog to review November’s activity. This will  include statistics from across the platform and helpful tips to 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

Watch The Ashes like a true Lady or Gentleman

Swap your turkey for a duck, your snowman for a nightwatchman, and make sure you’ve got your sledging boots ready to go – it’s time for The Ashes. With the start of one of sport’s greatest rivalries this Thursday, we’ve put together a list of businesses to help you celebrate in a true English manner. Each one has been able to grow or develop thanks to your lending.

Sticky pudding not a sticky wicket

Reaching the tea interval can be crucial for a batsman, and it’s an exciting moment for spectators too. We’d recommend upping your tea time credentials with something suitably scrumptious from Country Puddings in Cumbria. Lynne Mallinson, who borrowed £30,000 in 2012, started out baking from her farmhouse kitchen. Lynne has now gone on to win countless Taste Awards. As they say, the proof is in the pudding…

BritishTea

Bubbles on the boundary

If you find yourself on the boundary or even just at home chatting cricket with friends, celebrate like a true lady or gent with a glass of bubbly from Love Champagne. Established in 2007, the champagne specialists sell types for all occasions from their base in Shropshire. To expand their product range, Love Champagne have borrowed over £150,000 since 2016.

Strawberries as crisp as a new ball

A delight all year round, the great British strawberry will bring a touch of summer to your winter ashes. A traditional staple for any Englishman, they’ll help ease the pain of that inevitable top-order collapse. Stock up on your supplies from Annie’s Fruit Shop, who’ve borrowed over £240,000 across 4 loans since 2015, to create a truly delicious dish. Eton mess anyone?

BritishBulldog

Get yourself a hat-trick

Top off your cricket attire with a traditional hat from Laird Hatters, perfect for the pavilion or the stands. Whether you’re looking for a fedora or a flat cap, you’ll find something to suit your style. With rich colours and top quality British cloth, you’ll not only feel great, but you’ll most definitely stand out. To expand their range of handmade hats, Laird Hatters have borrowed £140,000 across 2 loans since 2013.

Become the next Joe Root

If all the cricket commotion has you feeling inspired, why not buy your own cricket gear from The Cornish Cricket Company? A step up from the sticks of rhubarb they practice with in Yorkshire, they sell a variety of gear and even offer coaching. To expand their business and hire more staff, The Cornish Cricket Company borrowed over £50,000 in 2017.

Are you interested in lending to businesses like these?

Lend alongside 73,000 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 30,000 businesses in the UK have accessed finance from Funding Circle. You could boost your cash flow, refurbish premises, hire staff and much more. Check if you qualify for a business loan online in just 30 seconds.