Marketplace lending in the UK breaks new record | Weekly Lending Review

Week 32: 3 – 7 August 2015

A record-breaking £500 million was lent to consumers and businesses through marketplaces like Funding Circle, from April to June 2015 for the first time in history. Here’s our round-up of last month’s industry news.

News you should know

We’re making some improvements to the marketplace; specifically how Autobid funds new loans. Until now, Autobid could fund up to half of each available loan at the minimum bid rate. As more money is being lent through Autobid than ever before, we’re increasing this so 65% of new loans can be funded by Autobid at the minimum rate. Should this change again in the future, we’ll let you know in the Weekly Lending Review. This update should not affect your lending experience, but if you have any questions about this please get in touch or visit our forum.

New loans available to you

There are currently 50 loan requests on the marketplace which are all available for you to lend to.

The total value of new loans listed on the Funding Circle marketplace was £13,119,840, averaging at £73,331 per loan. The largest loan value was £400,000 and the smallest loan value was £5,000.

Business loans still available for bidding on:

Weekly marketplace trends

These graphs show the most recent activity on the marketplace. The dates on the graph should be read as ‘week beginning’, for example: 3-Aug represents the week of 3rd – 7th August 2015.

The average gross yield graph is reported weekly and shows a rolling two week average of gross yields. This calculation assumes you reinvest your interest each month and therefore includes the compound interest you earn. You can view the latest gross interest rates accepted on the marketplace on our statistics page.

Weekly average gross yield (2 weeks rolling)

WLR 32 yield

Number of loans, value of loans and amount lent are reported weekly.

Number of listed loans per week

WLR 32 loans listed

Listed loan value per week

WLR 32 value

Total amount lent

WLR 32 amount lent

Loan parts available to buy from other investors

WLR 32 loan parts

Loans defaulted last week

Retail business. Loan 8268. Risk band C

This Manchester business was established in 2011 and has entered liquidation.

Courier company. Loan 5423. Risk band D

This Cheshire business was incorporated in 2007 and has been placed in administration.

Indian restaurant. Loan 1751. Risk band B

This Birmingham business has been running since 1998 and is 2 months in arrears.

Ecological consultants. Loan 3751. Risk band D

This Wiltshire business was established in 2010 and has entered liquidation.

All affected investors have been notified.

Our collections and recoveries team are working to recover the outstanding amounts for all of these loans. Read how our collections and recoveries process works on our blog.

Enjoy lending, The Funding Circle Team

A record-breaking £47.5 million lent to businesses in July! | Weekly Lending Review

Week 31: 27 – 31 July 2015

A record-breaking £47.5 million was lent to businesses across the UK through the Funding Circle marketplace in July, thanks to your lending.

There are a wide variety of opportunities on the marketplace for you to lend to, including a property developer building 4 new homes in Wigan and a fundraising business looking to expand. Remember, by lending to businesses your capital is at risk.

New loans available to you

There are currently 46 loan requests on the marketplace which are all available for you to lend to.

If you are lending to less than 100 businesses (and are not part of the 100 club) you may be missing out on a more stable return. We’ve created a short video which runs through the basics of diversification, which simply means lending small amounts of money to lots of different businesses, and how you can diversify at Funding Circle.

The total value of new loans listed on the Funding Circle marketplace was £11,440,520, averaging at £84,304 per loan. The largest loan value was £515,480 and the smallest loan value was £5,000.

Business loans still available for bidding on for the next 3 days or more:

Weekly marketplace trends

These graphs show the most recent activity on the marketplace. The average gross yield graph is reported weekly and shows a rolling two week average of gross yields. This calculation assumes you reinvest your interest each month and therefore includes the compound interest you earn. Number of loans, value of loans and amount lent are reported weekly. The dates on the graph should be read as ‘week beginning’, for example: 27-July represents the week of 27th – 31st July 2015.

Weekly average gross yield (2 weeks rolling)

WLR 31 Yield

Number of listed loans per week

WLR 31 Loans Listed

Listed loan value per week

WLR 31 Loan Value

Total amount lent

WLR 31 Amount Lent

Loan parts available to buy from other investors

WLR 31 Loan parts

News you should know

We’re making some small changes to our investor terms and conditions this week, mainly to clarify how the marketplace works and to comply with regulation. More information about the specific changes can be found on our blog.

If you have any questions please contact our customer service team who will be happy to help.

Loans defaulted last week

IT recruiter. Loan 4315. Risk band D

This Hertfordshire business was established in 2007 and is 5 months in arrears.

Video game retailer. Loan 8570. Risk band B

This Angus business was incorporated in 2012 and has ceased trading.

All affected investors have been notified.

Our collections and recoveries team are working to recover the outstanding amounts for all of these loans. Read how our collections and recoveries process works on our blog.

Enjoy lending, The Funding Circle Team

 

A fantastic benefit from our partner, Virgin Trains | Weekly Lending Review

Week 28: 6 – 10 July 2015

Earlier this year we announced our partnership with Virgin Trains, and brought members of the Funding Circle community 20% off train travel on the Virgin Trains West Coast Mainline. We’re pleased to announce the offer has been extended until 29th December 2015. You can read more about the announcement, and how to book on the blog.

New loans available to you

There are currently 75 loan requests on the marketplace which are all available for you to lend to.

The total value of new loans listed on the Funding Circle marketplace was £11,599,200, averaging at £59,002 per loan. The largest loan value was £500,000 and the smallest loan value was £5,000.

Business loans still available for bidding on for the next 3 days or more:

Weekly marketplace trends

These graphs show the most recent activity on the marketplace. The average gross yield graph is reported weekly and shows a rolling two week average of gross yields. This calculation assumes you reinvest your interest each month and therefore includes the compound interest you earn. Number of loans, value of loans and amount lent are reported weekly. The dates on the graph should be read as ‘week beginning’, for example: 6-July represents the week of 6th – 10th July 2015.

Weekly average gross yield (2 weeks rolling)

WLR 28 - yield

Number of listed loans per week

WLR 28 - listed

Listed loan value per week

WLR 28 - loan value

Total amount lent

WLR 28 - amount lent

Loan parts available to buy from other investors

WLR 28 - loan parts 2

News you should know

Lend to more businesses in these 3 easy steps.

Following the introduction of the E band, you may wish to update your autobid settings by following the 3 easy steps below. You can read more about our new risk band on the blog.

(1) Log back into your account and navigate to Autobid.

(2) If your Autobid is on:

Take a note of your current settings
Click ‘Turn Autobid Off’
Use the ‘Advanced Settings’ to include the E risk band
Click ‘Turn Autobid On’

(3) If your Autobid is off:

Use the ‘Advanced Settings’ to include the E risk band
Click ‘Turn Autobid On’

Providing more information around defaulted loans

If you have any defaulted loans you may have noticed we apply a RAG (Red, Amber, Green) rating system, also known as a traffic light system, in the loan comments on your dashboard. This is to help you assess the quality of your defaulted loans, and your expected return over a certain period of time.

Loan defaulted last week

E-cigarette supplier. Loan 11038. Risk band B

This Cardiff business has been running since 2011, and is entering insolvent liquidation. All affected investors have been notified.

Our collections and recoveries team are working to recover the outstanding amounts for all of these loans. Read how our collections and recoveries process works on our blog.

Enjoy lending, The Funding Circle Team

 

You’re helping even more small businesses | Weekly Lending Review

Week 27: 29 June – 3 July 2015

It was an exciting week at Funding Circle as we introduced a sixth risk band, to help even more small businesses access finance, whilst offering you more lending opportunities on the marketplace. More than £10 million made its way to businesses across the UK in just one week alone, thanks to your lending.

New loans available to you

There are currently 75 loan requests on the marketplace which are all available for you to lend to.

As part of lending to businesses, some may be unable to fully repay their loans, which is why diversification is so important. We’ve created a short video which runs through the basics of diversification and how you can diversify at Funding Circle.

The total value of new loans listed on the Funding Circle marketplace was £8,709,500, averaging at £66,484 per loan. The largest loan value was £588,000 and the smallest loan value was £5,000.

Business loans still available for bidding on for the next 3 days or more:

Weekly marketplace trends

These graphs show the most recent activity on the marketplace. The average gross yield graph is reported weekly and shows a rolling two week average of gross yields. This calculation assumes you reinvest your interest each month and therefore includes the compound interest you earn. Number of loans, value of loans and amount lent are reported weekly. The dates on the graph should be read as ‘week beginning’, for example: 29-June represents the week of 29th June – 3rd July 2015.

Weekly average gross yield (2 weeks rolling)

Yield 2 27

Number of listed loans per week

Loans listed 27

Listed loan value per week

Loan value 27

Total amount lent

Amount lent 27

Loan parts available to buy from other investors

Loan parts 27

News you should know

Following the introduction of the E band, C- has been renamed to D

C- has been renamed to D to make our risk grading easier to understand. The new risk band structure is: A+, A, B, C, D, E,  where A+ is lowest risk.

Providing more information around defaulted loans

If you have any defaulted loans you may have noticed we apply a RAG (Red, Amber, Green) rating system, also known as a traffic light system, in the loan comments on your dashboard. This is to help you assess the quality of your defaulted loans, and your expected return over a certain period of time.

Loans defaulted last week

Industrial fastening stockist. Loan 3824. Risk band A

This Cambridgeshire business was incorporated in 2001 and is entering insolvent liquidation.

Building design. Loan 1839. Risk band B

This London business has been running since 1997 and has entered administration.

Vehicle recovery and repairs. Loan 3564. Risk band D

This Durham business was established in 2012 and has ceased trading.

Sports optics supplier. Loan 3788. Risk band D

This Surrey business was incorporated in 2010 and has ceased trading.

Agricultural contractor. Loan 6127. Risk band D

This County Fermanagh business has been running since 2014 and is 3 months in arrears.

Tarpaulin manufacturer. Loan 5387. Risk band A

This Suffolk business was incorporated in 2007 and has entered insolvent liquidation.

Digital agency. Loan 1372. Risk band C

This London business was established in 1996 and is 3 months in arrears.

All affected investors have been notified.

Our collections and recoveries team are working to recover the outstanding amounts for all of these loans. Read how our collections and recoveries process works on our blog.

Enjoy lending, The Funding Circle Team

 

Furnishing the set of Downton Abbey, thanks to over 2,000 people | Weekly Lending Review

Week 26: 22 – 26 June 2015

The Stripes Company, based in Chester, supplied delightful deckchairs and sun shelters for the set of Downton Abbey! A striped fabric specialist, they have borrowed over £175,000 across 3 Funding Circle loans since 2011 to help with cashflow. Founder Maria discusses her experience of Funding Circle on the blog.

New loans available to you

There are currently 47 loan requests on the marketplace which are all available for you to lend to.

As part of lending to businesses, some may be unable to fully repay their loans, which is why diversification is so important. We’ve created a short video which runs through the basics of diversification and how you can diversify at Funding Circle.

The total value of new loans listed on the Funding Circle marketplace was £11,375,820, averaging at £64,811 per loan. The largest loan value was £430,000 and the smallest loan value was £7,500.

Business loans still available for bidding on for the next 3 days or more:

Weekly marketplace trends

These graphs show the most recent activity on the marketplace. The average gross yield graph is reported weekly and shows a rolling two week average of gross yields. This calculation assumes you reinvest your interest each month and therefore includes the compound interest you earn. Number of loans, value of loans and amount lent are reported weekly. The dates on the graph should be read as ‘week beginning’, for example: 22-June represents the week of 22nd – 26th June 2015.

Weekly average gross yield (2 weeks rolling)

WLR 26 Yield

Number of listed loans per week

WLR loans listed

Listed loan value per week

WLR 26 Loan value

Total amount lent

WLR 26 Amount lent

Loan parts available to buy from other investors

WLR 26 Loan parts

News you should know

We’re introducing a new risk band and renaming C-

We’re excited to announce that we’re introducing a sixth risk band, E, to help more small businesses access finance, whilst offering investors more borrowers to lend to. These loans will be listed on the marketplace over the coming weeks.

Within the next few weeks, C- will also be renamed to D to make our risk grading easier to understand. The new risk band structure will be: A+, A, B, C, D, E,  where A+ is lowest risk. Please note all loans parts you hold which are C- will be renamed to D shortly.

More information about the new risk band and renaming risk band C- to D can be found on our blog or if you have any questions about this update please contact us.

Providing more information around defaulted loans

If you have any defaulted loans you may have noticed we apply a RAG (Red, Amber, Green) rating system, also known as a traffic light system, in the loan comments on your dashboard. This is to help you assess the quality of your defaulted loans, and your expected return over a certain period of time.

Loans defaulted last week

Retail outlet. Loan 8629. Risk band B

This Glasgow business was established in 2008 and is entering liquidation.

Building contractor. Loan 3322. Risk band C

This Merseyside business was incorporated in 2007 and has entered insolvent liquidation.

Heating control specialists. Loan 3156. Risk band A

This Hertfordshire business has been running since 2004 and has entered insolvent liquidation.

Dairy cow herd. Loan 7966. Risk band A+

This Staffordshire business was established in 2014, and the borrower has become unresponsive.

Car accessory specialist. Loan 9129. Risk band C

This West Midlands business was incorporated in 2011 and has ceased trading.

Legal service. Loan 6344. Risk band B

This Bedfordshire business has been running since 2014 and the owner is proposing an individual voluntary arrangement.

All affected investors have been notified.

Our collections and recoveries team are working to recover the outstanding amounts for all of these loans. Read how our collections and recoveries process works on our blog.
Enjoy lending, The Funding Circle Team

We’re introducing a new risk band and renaming C- to D | Weekly Lending Review

Week 25: 15 – 19 June 2015

We’re excited to announce that we are  introducing a sixth risk band, E, to help more small businesses access finance, whilst offering UK investors more borrowers to lend to. These loans will be listed on the marketplace over the coming weeks.

Within the next few weeks, C- will be renamed to D to make our risk grading easier to understand. The new risk band structure will be: A+, A, B, C, D, E,  where A+ is lowest risk. Please note all loans parts you hold which are C- will be renamed to D shortly.

More information about the new risk band and renaming risk band C- to D can be found on our blog or if you have any questions please contact us.

Record value of new lending opportunities

There are currently 70 loan requests on the marketplace which are all available for you to lend to.

The total value of new loans listed on the Funding Circle marketplace was £13,689,600, averaging at £67,159 per loan. The largest loan value was £500,000 and the smallest loan value was £5,000.

Business loans still available for bidding on for the next 3 days or more:

Weekly marketplace trends

These graphs show the most recent activity on the marketplace. The average gross yield graph is reported weekly and shows a rolling two week average of gross yields. This calculation assumes you reinvest your interest each month and therefore includes the compound interest you earn. Number of loans, value of loans and amount lent are reported weekly. The dates on the graph should be read as ‘week beginning’, for example: 15-June represents the week of 15th – 19th June 2015.

Weekly average gross yield (2 weeks rolling)

Yield

Number of listed loans per week

Loans listed

Listed loan value per week

Loan value

Total amount lent

Amount lent

Loan parts available to buy from other investors

loan parts

Are you diversified?

We’ve created a short video about diversification, which simply means lending small amounts of money to lots of different businesses, to help you earn an attractive return in a sustainable way. Remember, by lending to businesses your capital is at risk.

Providing more information around defaulted loans

If you have any defaulted loans you will have noticed that we now apply a RAG (Red, Amber, Green) rating system, also known as a traffic light system, in the loan comments on your dashboard. The purpose of the new system is to help you assess the quality of your defaulted loans, and your expected return over a certain period of time.

Loans defaulted last week

Property management company. Loan 10116. Risk band C

This London business was established in 2010 and is entering a long-term payment plan.

Software products supplier. Loan 6194. Risk band B

This Essex business has been running since 2011 and has entered liquidation.

General engineering manufacturer. Loan 3790. Risk band B

This Stafford business was incorporated in 1970, and has entered liquidation.

Car suspension manufacturer. Loan 3258. Risk band C-

This Hampshire business was established in 2008 and is now two months in arrears.

All affected investors have been notified.

Our collections and recoveries team are working to recover the outstanding amounts for all of these loans. Read how our collections and recoveries process works on our blog.

Enjoy lending, The Funding Circle Team

 

Did you lend to this Surrey technology company? | Weekly Lending Review

Week 24: 8 – 12 June 2015

In October 2013, Pure Technology took out a business loan to help with cashflow which was funded by more than 1,200 people. Founder Danny Long discusses his experience of Funding Circle on the blog, and has a special message for those who lent to his business.

New loans available to you

There are currently 74 loan requests on the marketplace which are all available for you to lend to.

Lending small amounts of money to lots of different businesses can help you earn attractive returns in a sustainable way. We’ve created a short video which runs through the basics of diversification and how you can diversify at Funding Circle.

The total value of new loans listed on the Funding Circle marketplace was £11,604,520, averaging at £69,147 per loan. The largest loan value was £500,000 and the smallest loan value was £5,000.

Business loans still available for bidding on for the next 3 days or more:

Weekly marketplace trends

These graphs show the most recent activity on the marketplace. The average gross yield graph is reported weekly and shows a rolling two week average of gross yields. This calculation assumes you reinvest your interest each month and therefore includes the compound interest you earn. Number of loans, value of loans and amount lent are reported weekly. The dates on the graph should be read as ‘week beginning’, for example: 8-June represents the week of 8th – 12th June 2015.

Weekly average gross yield (2 weeks rolling)

yield 2

Number of listed loans per week

loans listed

Listed loan value per week

loan value

Total amount lent

Amount lent

Loan parts available to buy from other investors
loans parts

Providing more information around defaulted loans

If you have any defaulted loans you will have noticed that we now apply a RAG (Red, Amber, Green) rating system, also known as a traffic light system, in the loan comments on your dashboard. The purpose of the new system is to help you assess the quality of your defaulted loans, and your expected return over a certain period of time.

Loans defaulted last week

Battery consultants. Loan 3512. Risk band A+

This Hampshire business was incorporated in 2005 and the loan is 4 months in arrears.

Call centre recruitment services. Loan 7263. Risk banc C-

This Cheshire business has been running since 2008 and the guarantor has become unresponsive.

Motor trader. Loan 5617. Risk band B

This London business was established in 2005 and has ceased trading.

Domiciliary care services. Loan 6552. Risk band A

This Milton Keynes business has been running since 2003 and is proposing a company voluntary agreement.

E-commerce beauty company. Loan 3155. Risk band C

This Swansea business was incorporated in 2006 and is proposing a company voluntary agreement.

All affected investors have been notified.

Our collections and recoveries team are working to recover the outstanding amounts for all of these loans. Read what happens during the recoveries process on our blog.

Enjoy lending, The Funding Circle Team

 

You’ve helped lend £10.5 million to businesses | Weekly Lending Review

Week 23: 1 – 5 June 2015

Last week Funding Circle investors lent more than £10.5 million to businesses across the UK. The majority of businesses looking for funding were in the property and construction sector and the most popular reason for needing funding was to expand.

New loans available to you

There are currently 65 loan requests on the marketplace which are all available for you to lend to.

As part of lending to businesses, some may be unable to fully repay their loans, which is why diversification is so important. We’ve created a short video which runs through the basics of diversification and how you can diversify at Funding Circle.

The total value of new loans listed on the Funding Circle marketplace was £11,107,040, averaging at £94,152 per loan. The largest loan value was £630,000 and the smallest loan value was £8,000.

Business loans still available for bidding on for the next 3 days or more:

Weekly marketplace trends

These graphs show the most recent activity on the marketplace. The average gross yield graph is reported weekly and shows a rolling two week average of gross yields. This calculation assumes you reinvest your interest each month and therefore includes the compound interest you earn. Number of loans, value of loans and amount lent are reported weekly. The dates on the graph should be read as ‘week beginning’, for example: 1-June represents the week of 1st – 5th June 2015.

Weekly average gross yield (2 weeks rolling)

Yield

Number of listed loans per week

Loans listed per week

Listed loan value per week

Loan value listed

Total amount lent

Amount lent

Loan parts available to buy from other investors

Loan parts

News you should know

Spartan Motor Factors is  the fastest growing vehicle parts supplier in South Wales, with branches in Newport, Cardiff and Bridgend. They are dedicated to providing high quality vehicle parts at competitive prices to local garages. We met director Jason Farrugia who told us why he started the company and how his Funding Circle business loan has helped his company. Hear Jason’s Funding Circle story on the blog.

Providing more information around defaulted loans

If you have any defaulted loans you will have noticed that we now apply a RAG (Red, Amber, Green) rating system, also known as a traffic light system, in the loan comments on your dashboard. The purpose of the new system is to help you assess the quality of your defaulted loans, and your expected return over a certain period of time.

Loans defaulted last week

Nail and beauty products supplier. Loan 5917. Risk band C

This Tyne and Wear company was incorporated in 1998 and is now 3 months in arrears.

Industrial pipework specialists. Loan 7743. Risk band A

This Carlisle business has been running since 2010 and has entered liquidation

Engineering inspection services. Loan 9588. Risk band C-

This South Yorkshire business was established in 2007 and has entered voluntary liquidation.

Domiciliary care services. Loan 4117. Risk band A

This Milton Keynes business has been running since 2003 and is proposing a company voluntary arrangement.

Safety consultants. Loan 3931. Risk band C-

This Manchester business was incorporated in 2001 and is proposing an individual voluntary arrangement.

All affected investors have been notified.

Our collections and recoveries team are working to recover the outstanding amounts for all of these loans. Read what happens during the recoveries process on our blog.

Enjoy lending, The Funding Circle Team

 

How our collections process works | Weekly Lending Review

Week 22: 25 – 29 May 2015

Following our blog where we examined how our collections process works, we have put together a further post (part 2) which explains how and when we update you about loans which are late or defaulted.

Read more about loan comments and how the collections process works on the blog.

New loans available to you

There are currently 63 loan requests on the marketplace which are all available for you to lend to.

As part of lending to businesses, some may be unable to fully repay their loans, which is why we believe diversification is so important. We’ve created a short video which runs through the basics of diversification and how you can diversify at Funding Circle.

The total value of new loans listed on the Funding Circle marketplace was £8,242,180, averaging at £67,664 per loan. The largest loan value was £650,000 and the smallest loan value was £9,380.

Business loans still available for bidding on for the next 3 days or more:

Weekly marketplace trends

These graphs show the most recent activity on the marketplace. The average gross yield graph is reported weekly and shows a rolling two week average of gross yields. This calculation assumes you reinvest your interest each month and therefore includes the compound interest you earn. Number of loans, value of loans and amount lent are reported weekly. The dates on the graph should be read as ‘week beginning’, for example: 25-May represents the week of 25th – 29th May 2015.

Weekly average gross yield (2 weeks rolling)

Yield

Number of listed loans per week

Loans listed real

Listed loan value per week

Loan value

Total amount lent

Amount lent

Loan parts available to buy from other investors

Loan parts

Providing more information around defaulted loans

If you have any defaulted loans you will have noticed that we now apply a RAG (Red, Amber, Green) rating system, also known as a traffic light system, in the loan comments on your dashboard. The purpose of the new system is to help you assess the quality of your defaulted loans, and your expected return over a certain period of time.

Loans defaulted last week

Outdoor clothing manufacturer. Loan 2224. Risk band C

This West Yorkshire business has been running since 2007, and has reneged on their payment plan.

Online bathroom retailer. Loan 1929. Risk band C

This London business was established in 2001, and has entered administration.

Bespoke metal fabrication services. Loan 7213. Risk band A

This Tyne and Wear business has been running since 2006, and has entered administration.

Organic vegetable wholesalers. Loan 537. Risk band A

This County Armagh business was incorporated in 2001, and is now 3 months in arrears.

All affected investors have been notified.

Our collections and recoveries team are working to recover the outstanding amounts for all of these loans. Read what happens during the recoveries process on our blog.

Enjoy lending, The Funding Circle Team

 

How our collections process works (part 2)

Loan Comments

When a business falls behind with their repayments, we have a process in place to try to get them back on track which we outlined in our previous post. We will now explain how and when we update you on loans which are late, and those that have defaulted. We do this by writing loan comments which you can access in your account.

Firstly, we hope you have noticed an increase in frequency and detail in loan comments recently.

At the beginning of each fortnight, the Collections & Recoveries team takes a snapshot of all the loans and all the Defaults. We distribute these around the team so that we can check whether there has been any material activity which should be explained to you.

This means that that the longest a defaulted or late loan should be without a comment (unless we have specified a date for the next comment) will be 4 weeks. In practice, however, this will usually be around 2 weeks.

Downgraded Loans

We carry out a monthly review of all downgraded loans to see whether they should have their risk band reinstated. If we reinstate a risk band we will provide a comment to explain why we have done so.

Late Loans

If a borrower misses a payment at the beginning of one of those two week periods and we do not cure it within that period, then the loan will be given a comment the following fortnight.  We will endeavour to explain the reason that we think a loan has become late as we appreciate that it is helpful for investors who wish to buy and sell loan parts from others.

Negotiations

When a borrower enters liquidation or administration it often takes a couple of months for the guarantors to sort out their financial affairs and work out a plan for the future.  We try to work with guarantors throughout this period, but communication is often irregular and the initial forecasts can be disappointing.  That said, things often pick up, and because of our approach, guarantors either try to enter into payment plans that result in a full recovery or they seek relief through bankruptcy.

Payment plans

When a borrower or guarantor is in a payment plan and is making regular monthly payments, we will only comment when the payment comes in.  From time to time payments may slip by a few days, but we are monitoring them and will update you if we feel that there is a material risk of there being no payment or a reduced payment in that month.

Legal or insolvency proceedings

When a guarantor enters into a formal insolvency procedure (such as an individual voluntary arrangement or bankruptcy) we will try to find out what the estimated recovery is, but insolvency practitioners are often unwilling to give information outside of the prescribed reports.  These reports occur every 6 or 12 months, and there is no available information outside of that.  Likewise, court procedures can take a long time to work through, especially if the defendant is putting up a defence.  We will, where possible in these longer term cases, give you a specific date for when we will next post a comment, with a reason why that should be the next date.  Of course, if anything significant occurs before then we will let you know.

We hope this 2-part series by our collections team has been helpful in understanding more about how our collections and recoveries process works. 

Enjoy lending

The Funding Circle team

 

Did you lend to this flower essence manufacturer? | Weekly Lending Review

Week 21: 18 – 22 May 2015

Back in 2013 The Flower Essence Repertoire took out a business loan so they could buy more raw materials to increase production. Based on the picturesque Isle of Gigha, in the Inner Hebrides, the business manufactures a range of flower essences, including orchid essences from orchids in their greenhouse, exporting them worldwide.

We visited founder, Don Dennis, to find out why he started the company. Read about Don’s Funding Circle experience on the blog.

New loans available to you

There are currently 53 loan requests on the marketplace which are all available for you to lend to.

The total value of new loans listed on the Funding Circle marketplace was £9,015,500, averaging at £79,470 per loan. The largest loan value was £500,000 and the smallest loan value was £5,000.

Business loans still available for bidding on for the next 3 days or more:

Weekly marketplace trends

These graphs show the most recent activity on the marketplace. The average gross yield graph is reported weekly and shows a rolling two week average of gross yields. This calculation assumes you reinvest your interest each month and therefore includes the compound interest you earn. Number of loans, value of loans and amount lent are reported weekly. The dates on the graph should be read as ‘week beginning’, for example: 18-May represents the week of 18th – 22nd May 2015.

Weekly average gross yield (2 weeks rolling)

Yield

Number of listed loans per week

Loans listed

Listed loan value per week

Loan value

Total amount lent

Amount lent

Loan parts available to buy from other investors

loan parts

Providing more information around defaulted loans

If you have any defaulted loans you may have noticed that we now apply a RAG (Red, Amber, Green) rating system, also known as a traffic light system, in the loan comments on your dashboard. The purpose of the new system is to help you assess the quality of your defaulted loans, and your expected return over a certain period of time.

Loans defaulted last week

Aquatic and pond suppliers. Loan 3401. Risk band B

This Essex business was established in 2011 and has agreed to nominal payments. All affected investors have been notified.

Master subcontractor. Loan 8316. Risk band C

This Essex business was incorporated in 2004, and has ceased trading. All affected investors have been notified.

Cake baking and decorating company. Loan 10357. Risk band B

This Lancashire business has been running since 2011, and has been unresponsive. All affected investors have been notified.

Cleaning product supplier. Loan 8122. Risk band B

This Bedfordshire business was established in 2003, and is now 4 months in arrears. All affected investors have been notified.

Our collections and recoveries team are working to recover the outstanding amounts for all of these loans. Read what happens during the recoveries process on our blog.

Enjoy lending, The Funding Circle Team

What are you doing this weekend? | Weekly Lending Review

Week 20: 11 – 15 May 2015

Whether it’s a staycation in Scotland or Saturday night in Somerset, we’ve put together the Top 5 Funding Circle Weekend Retreats so every weekend will feel like a Bank Holiday. Our handy guide will help you explore Britain and support small businesses along the way.

New loans available to you

There are currently 74 loan requests on the marketplace which are all available for you to lend to.

As part of lending to businesses, some may be unable to fully repay their loans, which is why we believe diversification is so important. We’ve created a short video which runs through the basics of diversification and how you can diversify at Funding Circle. Remember, by lending to businesses your capital is at risk.

The total value of new loans listed on the Funding Circle marketplace was £13,895,060, averaging at £79,954 per loan. The largest loan value was £450,000 and the smallest loan value was £5,000.

Business loans still available for bidding on for the next 3 days or more:

Weekly marketplace trends

These graphs show the most recent activity on the marketplace. The average gross yield graph is reported weekly and shows a rolling two week average of gross yields. This calculation assumes you reinvest your interest each month and therefore includes the compound interest you earn. Number of loans, value of loans and amount lent are reported weekly. The dates on the graph should be read as ‘week beginning’, for example: 11-May represents the week of 11th – 15th May 2015.

Weekly average gross yield (2 weeks rolling)

Yield

Number of listed loans per week

Loans listed

Listed loan value per week

Loan value

Total amount lent

Amount lent

Loan parts available to buy from other investors

Loan parts

News you should know

Have any technical questions for us about the website? Our VP of Engineering David, will be answering your questions on our community forum. Ask your questions here.

Providing more information around defaulted loans

If you have any defaulted loans you may have noticed that we now apply a RAG (Red, Amber, Green) rating system, also known as a Traffic Light system, in the Loan Comments on your dashboard. The purpose of the new system is to help you assess the quality of your defaulted loans, and your expected return over a certain period of time.

Loans defaulted last week

Business telephone supplier. Loan 2882. Risk band C

This London business was established in 1995, and has placed itself in insolvent liquidation. All affected investors have been notified.

Financial management organisation. Loan 4131. Risk band B

This Birmingham business has been running since 2000, and entered administration in February 2015. All affected investors have been notified.

Art gallery. Loan 4803. Risk band C

This London business was incorporated in 2005, and is 3 months in arrears. All affected investors have been notified.

Security training company. Loan 4697. Risk band C

This Buckinghamshire business was established in 2009, and is proposing a Company Voluntary Arrangement. All affected investors have been notified.

Business consultancy service. Loan 6669. Risk band C

This London business was incorporated in 2008, and has entered into liquidation. All affected investors have been notified.

Energy services company. Loan 7765. Risk band B

This Belfast business was established in 1991, and is proposing a Company Voluntary Arrangement. All affected investors have been notified.

Accountant. Loan 1523. Risk band A

This Hampshire business has been running since 1998, and is one month in arrears. All affected investors have been notified.

Our collections and recoveries team are working to recover the outstanding amounts for all of these loans. Read what happens during the recoveries process on our blog.

Enjoy lending, The Funding Circle Team

How our collections process works (part 1)

Lending to businesses can deliver attractive returns to investors while helping established British businesses to access the finance they need to grow. As part of lending to businesses, some will be unable to fully repay their loans, which is why we believe diversification is so important.

When a business falls behind with their repayments, we have a process in place to try to get them back on track. We have spent some time with our Collections and Recoveries team to find out more about how they do this, and wanted to share this with you.

In this post and the next, we explain in detail how our collections and comments process works, which we hope you will find useful.

THE COLLECTIONS & RECOVERIES PROCESS

(i)                 Late Payment

We typically find out if a direct debit has failed 3 days before the payment date.  At this point we automatically send an email to the borrower, and we try to retake the direct debit.  We will also  phone the borrower to ensure that the relevant account is in funds.

We will be informed of the second direct debit failing within 4 business days of taking it.  Such failure results in us sending a formal demand letter to the borrower and the guarantors.

We then spend the next 6 days phoning and emailing the borrower and the guarantors to arrange a manual payment to clear the arrears.

Unless we are arranging a payment plan, if the loan is still late 7 days after the payment date we will charge an administration fee of 15% of the arrears, and send another demand letter.  The purpose of the fee is to encourage borrowers to get the loan back to fully performing, and not to prioritise other creditors over their debt to Funding Circle investors. The fee, if received, goes towards our irrecoverable third party costs for recovery action which we start.

We will continue to contact the borrower and guarantor through phone calls and emails.

It is important to note that behind the scenes we work hard to contact borrowers and guarantors. We use a variety of techniques including tracing other phone numbers and addresses, and checking other business interests. We believe that it is in both our interests to resolve each late payment or defaulted loan as quickly as possible and have money repaid to you.

Depending on the circumstances, if we have had no contact from the borrower or the guarantors for at least 17 days we may then decide to Default the loan.

(ii)               Defaulted loans

When the loan is defaulted we demand full payment of the full outstanding liability from the borrower and the guarantors.  This has the effect of crystallising the debt of the guarantors, and enables us to commence legal action (or formal insolvency action) against them.

Most of our recoveries are through the guarantors, and so our enforcement action will end up in one of the four ways set out below.

1. Payment plans

We will always seek to agree a fair and affordable payment plan with borrowers and guarantors.  We want guarantors to get back on their feet and repay the loan in full over time, and usually we will not agree to an early settlement figure for less than 100p in the £.  We always ask for contractual interest to be paid too. This strategy appears to be quite successful although it can be frustrating for investors initially as often payments are small at the start of a payment plan, and take several months until they increase.  If the payments are below a certain threshold, we will require security on the guarantor’s property.

2. Individual voluntary arrangements

We do not accept informal settlements and will only allow the debt to be reduced if the guarantor enters into an Individual Voluntary Arrangement (IVA).  The reason for this is that an insolvency practitioner, who is an officer of the court, is standing behind the IVA and is responsible for ensuring that the proposal is fair and accurate.  This is not the case in an informal arrangement. Also, an IVA is designed to give people another chance, and we need to respect the legal purpose behind this procedure.

3. Bankruptcy

Sometimes bankruptcy can be the right option for an individual.  When a guarantor is made bankrupt, we will always try to get an insolvency practitioner from our panel appointed as Trustee in Bankruptcy (i.e. the person who takes controls of the bankrupt’s assets and carries out various investigations).  However, sometimes this is not possible.  When an individual enters bankruptcy it is very rare that there will be a material recovery for investors.

4. Court Action

Sometimes court action may result in us appointing High Court Enforcement Officers (i.e. bailiffs) to agree a payment plan with a guarantor, or we seek to obtain a charge on their property and then an Order for Sale. This is very much the last resort for us.

We will always stop any legal action in its tracks if the guarantor starts communicating with us again. That said, if we have any reason to believe that a guarantor is deliberately trying to deceive us (rather than simply being afraid to face up to his or her responsibilities), we will always take legal action or commence bankruptcy proceedings rather than try to negotiate or approve an IVA.

What’s next?

We hope this has been helpful in understanding more how the collections process works. Stay tuned for the next installment where we’ll run through how we update you: loan comments.

Are you diversified? | Weekly Lending Review

Week 19: 4 – 8 May 2015

Our aim at Funding Circle is to help you have the most enjoyable experience possible, by earning attractive returns in a sustainable way.

We’ve created a video which runs through the basics of diversification, why we believe it’s so important and how you can diversify at Funding Circle. Learn more about diversification here.

New loans available to you

There are currently 50 loan requests on the marketplace which are all available for you to lend to.

The total value of new Funding Circle loans was £7,722,420, averaging at £69,039 per loan. The largest loan value was £450,000 and the smallest loan value was £5,000.

Business loans still available for bidding on for the next 3 days or more:

Weekly marketplace trends

These graphs show the most recent activity on the marketplace. The average gross yield graph is reported weekly and shows a rolling two week average of gross yields. This calculation assumes you reinvest your interest each month and therefore includes the compound interest you earn. Number of loans, value of loans and amount lent are reported weekly. The dates on the graph should be read as ‘week beginning’, for example: 4-May represents the week of 4th – 8th May 2015.

Weekly average gross yield (2 weeks rolling)

Yield

Number of listed loans per week

Loans listed

Listed loan value per week

Loan value

Total amount lent

Amount lent

Loan parts available to buy from other investors

Loan parts

Providing more information around defaulted loans

If you have any defaulted loans you may have noticed that we now apply a RAG (Red, Amber, Green) rating system, also known as a Traffic Light system, in the Loan Comments on your dashboard. The purpose of the new system is to help you assess the quality of your defaulted loans, and your expected return over a certain period of time.

Loans defaulted last week

Jewellery and gift shop. Loan 4608. Risk band B

This Bath business was incorporated in 2007, and has entered insolvent liquidation. All affected investors have been notified.

Film editing company. Loan 5904. Risk band B

This Derbyshire business has been running since 2008, and has entered insolvent liquidation. All affected investors have been notified.

Engine supplier. Loan 6521. Risk band A

This Lancashire business was established in 2002, and has entered insolvent liquidation. All affected investors have been notified.

Medical research company. Loan 3485. Risk band A

This Welsh business was incorporated in 2002, and the guarantor has proposed an individual voluntary arrangement. All affected investors have been notified.

Digital language tools. Loan 8883. Risk band A

This London business has been running since 2011, and the business is entering into a company voluntary arrangement. All affected investors have been notified.

Our collections and recoveries team are working to recover the outstanding amounts for all of these loans.

Enjoy lending, The Funding Circle Team

You’ve helped build over 400 new homes! | Weekly Lending Review

Week 18: 27 April – 1 May 2015

Funding Circle investors have now lent more than £50 million to small businesses who develop property, helping to build over 400 new homes across the country!

New loans available to you

There are currently 54 loan requests on the marketplace which are all available for you to lend to.

The total value of new Funding Circle loans was £7,661,060, averaging at £59,852 per loan. The largest loan value was £565,000 and the smallest loan value was £6,200.

Business loans still available for bidding on for the next 3 days or more:

Weekly marketplace trends

These graphs show the most recent activity on the marketplace. The average gross yield graph is reported weekly and shows a rolling two week average of gross yields. This calculation assumes you reinvest your interest each month and therefore includes the compound interest you earn. Number of loans, value of loans and amount lent are reported weekly. The dates on the graph should be read as ‘week beginning’, for example: 27-Apr represents the week of 27th April – 1st May 2015.

Weekly average gross yield (2 weeks rolling)

Yield

Number of listed loans per week

Loans listed

Listed loan value per week

Loan value

Total amount lent

Amount lent

Loan parts available to buy from other investors

Loan parts

Providing more information around defaulted loans

If you have any defaulted loans you may have noticed that we now apply a RAG (Red, Amber, Green) rating system, also known as a Traffic Light system, in the Loan Comments on your dashboard. The purpose of the new system is to help you assess the quality of your defaulted loans, and your expected return over a certain period of time.

Loans defaulted last week

Blacksmiths. Loan 4027. Risk band A

This Perthshire business has been running since 2003, and has entered liquidation. All affected investors have been notified.

Refurbishment and building support business. Loan 2739. Risk band A

This Derbyshire business has been incorporated since 2003, and has entered insolvent liquidation. All affected investors have been notified.

Building contractors. Loan 4578. Risk band B

This Staffordshire business has been running since 1999, and their payment plan has overrun. All affected investors have been notified.

Our collections and recoveries team are working to recover the outstanding amounts for all of these loans.

Enjoy lending, The Funding Circle Team

$150 million investment to fuel growth | Weekly Lending Review

Week 17: 20 – 24 April 2015

Last week we were delighted to announce that we had completed a $150 million equity investment. This latest round of funding will help us to continue to improve our offer for both borrowers and investors; helping more businesses borrow, and improving the investment experience for all of our investors. Read more about the announcement on the blog.

New loans available to you

There are currently 73 loan requests on the marketplace which are all available for you to lend to.

The total value of new Funding Circle loans was £8,907,920, averaging at £65,499 per loan. The largest loan value was £400,000 and the smallest loan value was £5,000.

Business loans still available for bidding on for the next 3 days or more:

Weekly marketplace trends

These graphs show the most recent activity on the marketplace. The average gross yield graph is reported weekly and shows a rolling two week average of gross yields. This calculation assumes you reinvest your interest each month and therefore includes the compound interest you earn. Number of loans, value of loans and amount lent are reported weekly. The dates on the graph should be read as ‘week beginning’, for example: 20- Apr represents the week of 20th – 24th April 2015.

Weekly average gross yield (2 weeks rolling)

Yield

Number of listed loans per week

Loans listed

Listed loan value per week

Loan Value

Total amount lent

Amount Lent

Loan parts available to buy from other investors

Loan parts available

Positively perfect picnic ideas from your favourite Funding Circle businesses

Summer is coming. The weather is slowly improving and we have two May Bank Holidays to look forward to. Make it a summer to remember by showing your support to small businesses across the country with our positively perfect picnic ideas. Read about preparing the perfect Funding Circle picnic on the blog.

Providing more information around defaulted loans

If you have any defaulted loans you may have noticed that we now apply a RAG (Red, Amber, Green) rating system, also known as a Traffic Light system, in the Loan Comments on your dashboard. The purpose of the new system is to help you assess the quality of your defaulted loans, and your expected return over a certain period of time.

Loans defaulted last week

Digital Media Agency. Loan 5069. Risk band A

This Bedfordshire business has been running since 1999, and has entered into administration. All affected investors have been notified.

Restaurant. Loan 5219. Risk band C-

This Argyll business has been incorporated since 2012, and is late in its repayments. All affected investors have been notified.

Our collections and recoveries team are working to recover the outstanding amounts for all of these loans.

Enjoy lending, The Funding Circle Team

 

Over £600 million lent through the marketplace | Weekly Lending Review

Week 16: 13 – 17 April 2015

This week we were delighted to hit the 10,000 loans to UK businesses milestone. We also passed £600 million lent through the Funding Circle marketplace since 2010!

You are now helping to lend  more than £40 million a month to established small businesses, and the Funding Circle marketplace is currently one of the largest net lenders to small businesses in the UK. Since launch, your lending has created an estimated 24,000 jobs.

New loans available to you

There are currently 74 loan requests on the marketplace which are all available for you to lend to.

The total value of new Funding Circle loans was £6,280,940, averaging at £64,700 per loan. The largest loan value was £460,000 and the smallest loan value was £5,000.

Business loans still available for bidding on for the next 3 days or more:

Weekly marketplace trends

These graphs show the most recent activity on the marketplace. The average gross yield graph is reported weekly and shows a rolling two week average of gross yields. This calculation assumes you reinvest your interest each month and therefore includes the compound interest you earn. Number of loans, value of loans and amount lent are reported weekly. The dates on the graph should be read as ‘week beginning’, for example: 13-Apr represents the week of 13th – 17th April 2015.

Weekly average gross yield (2 weeks rolling)

Yield

Number of listed loans per week

Loans listed

Listed loan value per week

Loan value

Total amount lent

Amount Lent

Loan parts available to buy from other investors

Loan parts

Providing more information around defaulted loans

If you have any defaulted loans you may have noticed that we now apply a RAG (Red, Amber, Green) rating system, also known as a Traffic Light system, in the Loan Comments on your dashboard. The purpose of the new system is to help you assess the quality of your defaulted loans, and your expected return over a certain period of time.

Loans defaulted last week

Rawdon Motors. Loan 3588. Risk band B

This Yorkshire business has been running since 2011, and has entered into an individual voluntary arrangement. All affected investors have been notified.

Open Business Services Limited. Loan 7915. Risk band C

This Middlesex business has been incorporated since 2012, and is late in its repayments. All affected investors have been notified.

Our collections and recoveries team are working to recover the outstanding amounts for all of these loans.

Enjoy lending, The Funding Circle Team

 

Picture story: how over 5,000 people are helping build homes in London

Back in April 2014, we expanded the types of loans we offer to include property loans and in the past 12 months, £45 million has been lent to small businesses in the property sector.

London-based property development company Medina Capital Investments has borrowed £890,000 from over 5,000 people through Funding Circle since September 2014. They are part of the way through the development they’re working on in West London, and are expecting to complete the construction and sale of 2 family homes by March 2016.

We visited Nidal Al-Khail, founder of Medina Capital Investments, to look at the site where the homes are being built. Here’s the story of his business and his experience of Funding Circle in Nidal’s own words:

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Property development loans were available between April 2014 and April 2017. If you work in the property industry and are looking for finance, we may still be able to help you with an unsecured loan up to £350,000 with a personal guarantee, or a secured loan up to £1 million.

Get an instant quote online or speak to our dedicated team today on 0800 048 8747.