Spring-clean your Funding Circle account

Last week marked the start of Spring—the clocks went forward, the days get longer and with a bit of luck, the weather gets warmer!

For many people, spring represents the time to have a good clean out in their homes, but it is a good opportunity to get your financial house in order as well. Your Funding Circle account is no exception, so here are four tips to help you get the most out of your investment.

1. Give yourself the best chance of earning a stable return

Our data shows that investors who diversify by lending small amounts to many businesses are more likely to earn a stable return. From time-to-time some of the businesses you lend to won’t be able to repay their loans, so lending small amounts minimises the effect this could have on your return. We suggest you lend to at least 100 businesses, with no more than 1% of your portfolio lent to each one.

 More information on the benefits of diversification can be found on our statistics page. You can see the maximum percentage you have lent to any one business in the My Loan Parts section of your Summary page.

2. Make sure your funds are working hard

You can earn great returns by directly lending to businesses through Funding Circle, but your money earns nothing if it is sat idle. Each month you will receive either a principal and interest payment (the amount you lent plus the interest earned), or an interest-only payment from the businesses you lend to. Ensuring these repayments are lent out to new borrowers can maximise your earning potential.

Doing this regularly can be time consuming, however our Autobid tool will automatically lend your repayments out to new borrowers, leaving you to get on with your day!

3. Check your Autobid settings

It’s good practice to review your Autobid settings regularly to ensure they still meet your lending criteria. While logged in, the Autobid page will allow you to turn the tool on or off and manage your diversification options. The Advanced Settings will also allow you to choose which risk bands to lend to and set the gross interest rates for buying loan parts from other investors. Remember, diversification across both risk bands and businesses can help you earn a stable return.

4. Grow your portfolio for the long-term

Setting up a standing order can be done quickly and allows you to set aside a little each month towards your financial future. Making even a modest regular contribution can have a considerable long-term effect on your Funding Circle account. For example, if an investor with £10,000 in their Funding Circle account was to set up a standing for £100 a month, after 30 years they could have an account worth nearly £200,000.*

Remember, past performance is not a guarantee of future performance, and by lending to businesses your capital is at risk.

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

*Returns are at our estimated annualised return of 6.9%** (as of 6th March 2017), 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 £199,084.63. Returns are calculated using a compound interest calculator.  

**This estimated return is a weighted estimate of the annual return after fees and bad debts that investors could earn from lending money to businesses seeking loans as of 6th March 2017. It is calculated by taking the gross interest rate less fees and estimated bad debts that will occur in the future for each of the last 3000 loans accepted on the marketplace. The average return is weighted by loan amount, compounded and before tax. The return is updated daily. See the full calculation here.

Read between the lines: What does the Budget mean for you?

Over the next few months we will be bringing you a regular column from Simon Read, a personal finance expert with extensive experience in helping people make the most of their money. Simon has written extensively on personal finance issues for a number of national UK newspapers. Previously he was personal finance editor at The Independent, and is currently an expert on BBC1’s Right on the Money show.

Each month Simon will cut through the jargon to help you understand what is happening in the wider financial world. This month, we caught up with him to get his reaction to last week’s Spring Budget and what it means for you.

 

We’ll be hearing regularly from Simon over the next few months, so watch this space!

Enjoy lending,

The Funding Circle team

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

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

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

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

Improving the way we talk to you

You told us that monthly and weekly updates were a little too much, so to better suit your needs we’ll now be updating you fortnightly with more in-depth information.

In-depth updates, every two weeks

Up first, we’re replacing your current Weekly Lending Review with two monthly blogs, which will still contain all the information you like to read, from the amount lent to businesses each month, how to make the most of your investment, and any recent defaults. However, we’re giving it all a spring clean and adding some new features.

Each month your new round-up will be split into two:

  • Your investment update will focus on the Funding Circle marketplace, from businesses you could lend to, to how much was lent last month, some new statistics and information from our experts.
  • Your lending impact will showcase success stories from recent borrowers, how your lending has helped them achieve their goals, insight into how things work at Funding Circle, and an opportunity to hear from other investors.

These refreshed blogs will be launching later this month.

Coming soon

Quick on the heels of the blog update, you’ll soon notice a refreshed look for your newsletters. Mirroring your new marketplace round-up blogs, the newsletters will be split into two:

  • An update on your investment and a round-up of what’s going on at Funding Circle at the beginning of each month.
  • What impact your lending is having on the UK economy mid-month, and showcase some of the extraordinary business owners you’re helping.

There’s lots of other improvements still to come, but for now we hope you like the new look and feel of our communications.

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.

How investor returns change over time

To help guide you on what you can expect from your lending experience, we wanted to show how a typical investor account could perform over a five-year period.

Performance over time

At Funding Circle, we show projected returns for both of the lending options available to investors. These are the annual returns investors could expect to earn once loans have been repaid. 

However, we don’t expect you to arrive at your projected return right away. During the course of your lending, your return will change. It will be affected by bad debt (businesses being unable to repay loans) and the recoveries you may receive (funds recovered from defaulted loans). Recoveries can take years, and the effect of bad debt is usually concentrated in certain phases. 

The below chart shows the typical stages a return will go through over a 5 year period. In this example, an investor has lent across all new loans taken out between 2012-2014, without reinvesting repayments. 

Phase 1 – Returns are at their highest initially

For the first few months the return is at its highest. This is because very few borrowers have been unable to repay their loans in the first 6 months.

Phase 2 – Bad debt causes a dip

We robustly assess every business you lend to, however, there will always be a small proportion who are unable to repay their loans in full. This is called bad debt. It can occur anytime, but it has the biggest effect between 6-18 months after lending starts. As you can see on the graph, it usually causes returns to dip during this period.

Phase 3 – Returns improve as recoveries and interest take effect

Although Phase 2 can be alarming, as you can see on the graph, typically returns pick up again. Although you will likely still experience bad debt, you’ll start to receive recoveries on some of the unrepaid funds and compound interest helps to boost your return over time. 

Think long term to get the best return

It’s important to accept bad debt as a normal part of lending. In most cases it will cause a dip in your return, and potentially some bumps along the way. However, by thinking long term, you can still earn attractive, inflation-beating returns.

The above chart is based on loan performance data over 5 years for all loans taken out between 2012-2014. As you are lending to your own portfolio of loans your return may differ. Past performance is not a guide to future performance and capital is at risk. Not covered by the Financial Services Compensation Scheme. 

Not your average small business

We think small businesses are pretty special. From butchers to bakers, IT consultants to accountants, small business owners and their employees across the UK are doing extraordinary things on a daily basis.

Finch House
To open a new cafe and bakery, Finch House borrowed £125,000 back in 2015.

Small companies make big business

Small businesses aren’t actually that small. When it comes to driving the UK economy forward they pack a pretty impressive punch. Small businesses in the UK, usually defined as any business with less than 250 employees, make up half of our GDP and 60% of private sector employment. You can find more small business facts in our Small business, Big impact infographic.

Tri dosha
To create a new product range of skincare products, Tri-Dosha borrowed £21,060 from 152 investors.

Under the umbrella term small business is an incredible array of exceptional people and industries. You can meet borrowers from a range of sectors in our industry insights series, including retail, hospitality and manufacturing. As you’ll see, the average Funding Circle borrower is usually someone quite remarkable.

While we love telling individual stories, in this post we’re taking a step back and looking at the numbers behind the businesses. Not including property specialists, here’s what the average of all our Funding Circle borrowers looks like….

The significance of the number 8

Our average borrower employs 8 people — enough to make a netball team and have a super sub. To apply for a loan, businesses need to have a minimum of 2 years trading history. However, the average Funding Circle borrower has been around for much longer — 8 years. This means our average business was established in 2009, the year Matt Smith was named as the new Doctor Who, Michael Jackson died, and Barbara Windsor retired from Eastenders. It also means many started life during the worst financial crisis for a generation, so our small business owners are clearly made of stern stuff!

Mill View Plant Centre
To expand and open a coffee shop, Mill View Plant Centre borrowed £100,000 in 2015.

 Helping businesses unlock their potential

There’s a variety of reasons businesses need finance. Whether it’s simply to get a cash boost or unlock their potential we’re on hand to help. Our simple application form can be filled out in just 10 minutes.

Over half of businesses take out a loan through Funding Circle to expand, including hiring staff or opening new premises, like Andy Walker from Teasdale Motorcycles. Being able to expand his business when the time was right helped Andy triple his turnover and grow the team by 10!

Teasdale
To expand and move premises, Teasdale Motorcycles borrowed £167,000

The second most popular reason for borrowing at 34% is working capital. This might be businesses buying stock for a busy season ahead or keeping up with increasing demand like Beech’s Fine Chocolates in Preston, who’ve been manufacturing high quality gourmet chocolates in Lancashire since 1920.

Beeches chocolates
To keep up with demand, Beech’s Fine Chocolates borrowed £250,000 in 2016.

As well as covering a wide range of industries, our borrowers are also based all over the country. 24% are in the South East, 14% in Midlands and 12% in North West.

So will 2018 be the best year for small businesses?

We’ve been championing small businesses since 2010, helping more than 20,000 UK businesses access over £2 billion in finance. Now we’re planning how we can help even more in the years to come. We’ve seen businesses are seizing new growth opportunities in 2017, however, with their affinity to the number 8, 2018 could be an even better year for our Funding Circle business community. Watch this space!

Grow your business with a Funding Circle loan today

We offer unsecured loans up to £350,000, with a personal guarantee, for a range of business purposes including expansion, refurbishment, cash flow and stock purchases.

Key loan features include:

  • Rates from 4.9%
  • Loans from 6 months to 5 years
  • ​Funds in as little as 1 week​
  • No early repayment fees​ — if you pay back early you pay back less

If you’re looking for business finance, check your eligibility online in just 30 seconds.

The data in this blog is correct as of February 2017

We’re celebrating £2 billion lent to UK businesses

It’s been six and a half years since Funding Circle was launched with a big idea, to revolutionise the way small businesses access finance. This week we’re proud to announce that we’re celebrating £2 billion in lending to small UK businesses.

£2 billion lent to UK businesses including Celia's

The numbers behind £2 billion

21,000 businesses have benefited from Funding Circle finance since 2010, and an estimated 40,000 jobs have been created as a result of this. Job creation makes a real difference to the economy, showing the direct impact Funding Circle investors are having on the UK. A total of £107.5 million* has also been earned in interest by 58,000 investors, after fees and bad debt.

What it really means

Reaching £2 billion is more than just a milestone. It means investors can get a good return on their money — whether they’re saving for retirement, a new house or for a rainy day.

And it means more business owners can go on to do extraordinary things; like Celia pictured above, who used her loan to open an award-winning cafe in Somerset. Find out what other extraordinary things our borrowers have achieved after accessing finance in this short video. 

 

If you’re interested in lending to companies like Celia’s, you can earn a current estimated return of 7%* per year^. Join the 58,000 people who are already lending.

If you’re looking for business finance, our fast, hassle-free loans can be with you in just one week. You can check your eligibility in 30 seconds. 

Your actual return may be higher or lower as your capital is at risk when lending to businesses.

*Correct as of 16 February 2017

^Correct as of 23 February 2017

£2 billion lent and your new marketplace round-up coming soon | Weekly Lending Review

Week 7: 13 – 17 February

You and other investors have lent a fantastic £2 billion to more than 20,000 British businesses. That’s thousands of jobs created, homes built, and energy driven into the UK economy. Thank you for your continued support.

Your new marketplace round-up

Following our recent survey, we’ll be publishing a new and improved marketplace round-up next month. Coming in March, the new fortnightly blog will still contain all the information you like to read, but will have a refreshed look and some new features. 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.

New loans available to you

Last week, the total value of new loans listed on the marketplace was £25,914,328, averaging at £71,704 per loan. The largest loan value was £490,000 and the smallest loan value was £5,150. There are also thousands of loan parts available for you to buy which will help you become diversified.

Business loans available to bid on:

 How to make the most of your investment

To help you earn a more stable return and make the most of your investment at Funding Circle, spread your lending across hundreds of businesses so you’re only lending a small amount to each one. Watch our 90 second video below to find out more about diversification at Funding Circle.

Weekly marketplace trends

These graphs show the most recent activity on the marketplace. The number of loans, value of loans and amount lent are reported weekly.

Number of listed loans per week

WLR 7-17 Loans listed

Listed loan value per week

WLR 7-17 Loan value

Total amount lent

WLR 7-17 amount lent

Loan parts available to buy from other investors

WLR 7-17 loan parts

Loans defaulted last week

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 16th February 2017.  For further information on why Funding Circle defaults loans you can read our FAQ here.

Our collection and recoveries team are working to recover the outstanding amounts and will provide updates in the loan comments section on your summary page. You can also read more about how our collections and recoveries process works (part one and part two) on our blog.

Enjoy lending, the Funding Circle team

We’re on hand to help | Weekly Lending Review

Week 6: 6 – 10 February

If you have any questions about your account our dedicated team are here to help. Whether you normally speak to Sophie, Fran, Hannah or Daisy, meet your Investor Support team and find out what they get up to each day.

New loans available to you

Last week, the total value of new loans listed on the marketplace was £25,788,400, averaging at £65,452 per loan. The largest loan value was £494,540 and the smallest loan value was £5,150. There are also thousands of loan parts available for you to buy which will help you become diversified.

Business loans available to bid on:

Gross interest rates are before fees and bad debts. Your actual return may be higher or lower as by lending to businesses, your capital is at risk.

How to make the most of your investment

To help you earn a more stable return and make the most of your investment at Funding Circle, spread your lending across hundreds of businesses so you’re only lending a small amount to each one. Watch our 90 second video below to find out more about diversification at Funding Circle.


 

Weekly marketplace trends

These graphs show the most recent activity on the marketplace. The number of loans, value of loans and amount lent are reported weekly.

Number of listed loans per week

 WLR 6 loans listed

Listed loan value per week

 WLR 6 loan value

Total amount lent

 WLR 6 amount lent

Loan parts available to buy from other investors

WLR 6 loan parts

News you should know

In last month’s industry news, read how financial technology took centre stage at the recent G20 conference, with Bank of England Governor Mark Carney describing how “Consumers will get more choice, better-targeted services and keener pricing.”

Loans defaulted last week

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 9th February 2017.  For further information on why Funding Circle defaults loans you can read our FAQ here.

Our collection and recoveries team are working to recover the outstanding amounts and will provide updates in the loan comments section on your summary page. You can also read more about how our collections and recoveries process works (part one and part two) on our blog.

Enjoy lending, the Funding Circle team

Meet the Investor Support team

At Funding Circle we are committed to providing you with the best possible lending experience. We have some exciting improvements planned for 2017, including the opportunity for you to earn tax-free returns with the launch of the Funding Circle ISA, subject to us receiving full authorisation from the Financial Conduct Authority (FCA).

If you ever have a question about Funding Circle or are looking for help with your account, our Investor Support team are on hand to help. We recently sat down with the team to share with you a bit more about who they are and what they get up to each day.

Brief overview of the Investor Support team:

We have nine members in our Investor Support team. Clare manages the team and has been with Funding Circle since 2012, while Sophie joined in 2015 and is the team supervisor. Fran, Georgia, Georgie, Daisy, Hannah, Lottie and Rachel make up the rest of the team.

Hi everyone, can you tell us about your role and what you do to help investors?

Clare: “We are the point of contact for new and existing investors, and act as their voice within the business. Day-to-day we speak to investors over the phone and via email ‒ dealing with a wide range of queries from account access issues, through to detailed analysis of an investor’s account performance.”

What’s your favourite part of working at Funding Circle?

Sophie: “Having the opportunity to improve investors’ experience by using their feedback to make product improvements.”

Daisy: “I love the culture here!”

Hannah: “Working for an exciting, innovative company with big ambitions for the future.  There is a real desire to challenge ourselves to constantly improve and do more.”

Lottie: “Working at a company that is reshaping a notoriously traditional industry.”

What is it about the role that you enjoy?

Georgie: “Being able to speak to someone new everyday.”

Georgia: “Helping investors to understand how Funding Circle works, and reassure them when they have concerns. It is a great feeling knowing you have made a positive impact on somebody’s day, and I enjoy speaking with a wide range of different people.”

Hannah: “The role is incredibly varied and unpredictable as we have to react to the issues and queries investors may have.”

Rachel: “Getting to know what investors want and how we can better improve the platform.”

Sophie: “Never having the same day twice, you never know what’s around the corner. Also the vast variety of personalities we get to speak and write to!”

Have there been any particular customer experiences that have stood-out for you?

Georgia: “Receiving a handwritten letter from an investor, thanking us for our help guiding him through a process he found particularly difficult. It was a lovely surprise that they had taken the time to get in touch with us to say thank you”

Lottie: “Meeting an investor and a borrower together, on one of our case studies.”

(You can see all our case studies on our blog.)

Sophie: “Building rapport with investors who get in touch with us regularly, and hearing about how they enjoy lending through Funding Circle.”

What would you say is the toughest part of the job?

Georgie: “Telling someone you can’t do something for them straight away, for example when it might take a few days to get an answer. I find that tough.”

Georgia: “Managing investors’ expectations, for example if we experience a technical issue or there’s something they would like improving.”

Sophie: “It’s hard to tell an investor something you know they might not like to hear.”

Rachel: “I agree. For example, we get a lot of questions from investors asking when we’ll be launching the Funding Circle ISA. We’re excited for it too, but until we’ve received full authorisation from the FCA we can’t provide a timeframe. Hopefully we’ll be able to answer it soon!”

What do you enjoy outside of Funding Circle?

Georgia: “I like running and baking, which is probably a good combination so I can run off all the cake!”

Daisy: “I like to visit museums.”

Hannah: “In my spare time I enjoy playing sport, mainly football or hockey, spending time with my friends and family, and travelling as often as I can.”

Georgie: “Playing tennis, lacrosse and rugby. Spending time with my family and friends and my dogs.”

Lottie: “My extra curricular hobbies are exploring London, watching classic films, and learning about new technology.”

Rachel: “I’m a real foodie! I’m also partial to the occasional board game.”

If you ever need assistance, you can reach us at contactus@fundingcircle.com. Alternatively you can give us a call on 0207 401 9111, Monday –   Friday 9am-6pm.

Enjoy lending,

The Funding Circle team

Picture story: Home sweet home in South London

Last year, we visited London property specialist HWJ Developments Ltd who were in the midst of refurbishing a 1930s detached house in South London. Business owner Henry Jamieson has over 15 years of experience, and his previous projects include a range of residential and commercial buildings, from Red Dog Restaurants in Hoxton and Clapham to art galleries in Mayfair and residential properties throughout central London from Wandsworth through to Camden.

The brand new 3,487sqft 5 bedroom house is situated in suburban London just 20 minutes by train from London Bridge or Victoria. Henry explained he was particularly excited when he found the house for sale on the internet as ‘the proportions of the building are very rare, it’s as wide as it is deep.’ However, the property had been affected by subsidence due to an overgrown oak tree and so the foundations needed completely redoing.

After acquiring the property and receiving planning permission late in 2015, Henry and his team of 15 full-time staff spent just under a year re-configuring the house. The building process went smoothly — Henry told us his philosophy for any development is “Aim for the best, but assume the worst, so that if the worst comes up you’re ready and will still make a profit.” Once the building was complete, the property was ‘dressed’ to bring it to life. This gives potential buyers an idea of how they might use the space, including a laid table and beautiful hand blown glass lighting in the kitchen diner.

To extend and refurbish this new family home in South London, HWJ Developments Ltd borrowed in December 2015. In this picture story, take a tour of the property and meet Henry:

Home sweet home

Property developer Henry

Property space

Henry quote

Stairs property

Development

Bathroom

Taps

Garden

Dressed property

Kitchen

Living room

Front of house

Thank you to investors

property finance contact

Accessing flexible finance allowed Henry to keep working and moving forward with his project. He added Funding Circle were a “joy to work with” and “made everything exceptionally easy to understand.” If, like Henry, you need property finance for your business, then you can email our property finance team directly to start your application.

Alternatively if you’re looking to lend to companies like Henry’s, then you can join 50,000 people who are already lending. Remember, by lending to businesses your capital is at risk.

Amour, liebe, love… | Weekly Lending Review

Week 4: 23 – 27 January

As we roll into February, New Year’s resolutions behind us and scoffing chocolate very much on the agenda for February 14th, we’ve put together a 6-step guide to help you make Valentine’s day extra special for your loved ones this year. All the businesses featured have been able to thrive thanks to your lending.

Record amount of new loans available to you

Last week, there was a record value of £30,784,970 new loans listed on the marketplace, averaging at £71,344 per loan. The largest loan value was £446,480 and the smallest loan value was £5,150. There are also thousands of loan parts available for you to buy which will help you become diversified.

How to make the most of your investment

To help you earn a more stable return and make the most of your investment at Funding Circle, spread your lending across hundreds of businesses so you’re only lending a small amount to each one. Watch our 90 second video below to find out more about diversification at Funding Circle.

Business loans available to bid on:

Gross interest rates are before fees and bad debts. Your actual return may be higher or lower as by lending to businesses, your capital is at risk.

Weekly marketplace trends

These graphs show the most recent activity on the marketplace. The number of loans, value of loans and amount lent are reported weekly.

Number of listed loans per week

 loans listed WLR 4

Listed loan value per week

 

Total amount lent

 

Loan parts available to buy from other investors

 

News you should know

Following a recent review of our property loan offering, we‘re increasing the interest rate on certain property loans and will begin to list some loans at a higher risk band than A+ or A. You can read more about this change on the blog.

Loans defaulted last week

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 26th January 2017.  For further information on why Funding Circle defaults loans you can read our FAQ here.

Our collection and recoveries team are working to recover the outstanding amounts and will provide updates in the loan comments section on your summary page. You can also read more about how our collections and recoveries process works (part one and part two) on our blog.

Enjoy lending, the Funding Circle team

 

How Andy turned his passion into a successful career | Weekly Lending Review

Week 3: 16 – 20 January

To help his business expand, motorbike specialist Andy borrowed £167,000. Find out about Andy’s passion for bikes and how investors, like you, have helped him triple turnover and hire 10 new members of staff in this short video.

Teasdale motors

New loans available to you

There are currently 6 loan requests on the marketplace, and thousands of loan parts available for you to buy which will help you become diversified.

The total value of new loans listed on the Funding Circle marketplace was £29,189,674, averaging at £71,230 per loan. The largest loan value was £490,000 and the smallest loan value was £5,125.

Business loans available to bid on:

Gross interest rates are before fees and bad debts. Your actual return may be higher or lower as by lending to businesses, your capital is at risk.

Weekly marketplace trends

These graphs show the most recent activity on the marketplace. The number of loans, value of loans and amount lent are reported weekly.

Number of listed loans per week

 WLR 3 loans listed

Listed loan value per week

 WLR 3 loan value

Total amount lent

 WLR 3 amount lent

Loan parts available to buy from other investors

 WLR loan parts

Loans defaulted last week

Guitar shop. Loan 6134. Risk band B

This Devon business was established in 2006 and has convened a meeting of their creditors.

Digital marketing agency. Loan 26170. Risk band B

This Oxfordshire business has been running since 2009 and is entering insolvency.

Car showroom. Loan 19938. Risk band C

This Yorkshire business was established in 2016 and has proposed an individual voluntary arrangement.

Catering suppliers. Loan 8172. Risk band C

This Cambridgeshire business has been running since 2007 and is 3 months in arrears.

Property maintenance business. Loan 14542. Risk band A

This Middlesex business was established in 2012 and has breached their payment plan.

Marketing agency. Loan 15067. Risk band B

This Tyne and Wear business has been running since 2007 and will shortly become 90 days late.

Farm. Loan 11030. Risk band B

This County Armagh business has failed to make agreed repayments.

Railway specialist. Loan 4476. Risk band B

This Worcestershire business has been running since 2006 and is 90 days in arrears.

Marketing agency. Loan 24582. Risk band C

This Essex business was established in 2013 and has ceased trading.

Construction company. Loan 18794. Risk band B

This Derbyshire business has been running since 2010 and has appointed a liquidator.

Benefits of diversification

Lending to businesses can deliver attractive returns, while helping businesses access the finance they need to grow. However, from time-to-time some businesses will be unable to repay their loan, which is why lending a small amount to lots of different businesses is so important. Watch our 90 second diversification video below to find out more.

Our collections and recoveries team are working to recover the outstanding amounts for all of the loans described above and they will provide you with updates in the loan comments section on your summary page. Read how our collections and recoveries process works (part one and part two) on our blog.

Enjoy lending, the Funding Circle team

What a start to the year! | Weekly Lending Review

Week 2: 9 – 13 January

It’s been a busy start to the year at Funding Circle, as the government-owned British Business Bank committed an additional £40 million to UK businesses and last week we were excited to announce we’ve raised a further £80 million to invest in building our technology platform. Read more about this and other updates on the blog.

New loans available to you

There are currently 11 loan requests on the marketplace, and thousands of loan parts available for you to buy which will help you become diversified.

The total value of new loans listed on the Funding Circle marketplace was £19,936,835, averaging at £78,877 per loan. The largest loan value was £615,720 and the smallest loan value was £5,150.

Business loans available to bid on:

Gross interest rates are before fees and bad debts. Your actual return may be higher or lower as by lending to businesses, your capital is at risk.

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 (The calculation is AGY = (1 + (two week rolling weighted average rate/12))^12 – 1). You can view the latest gross interest rates accepted on the marketplace on our statistics page.

Weekly average gross yield (2 weeks rolling)

WLR 2-17 yield

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

Number of listed loans per week

WLR 2-17 loans listed

Listed loan value per week

WLR 2-17 loan value

Total amount lent

WLR 2-17 amount lent

Loan parts available to buy from other investors

WLR 2-17 loan parts

Loans defaulted last week

Flooring shop. Loan 26083. Risk band D

This Northamptonshire business was established in 2011 and has ceased trading.

Energy assessors. Loan 15575. Risk band C

This Glamorganshire business has been running since 2008 and is being placed into liquidation.

Business development specialist. Loan 16980. Risk band A+

This Essex business was established in 2007 and is 3 months in arrears.

Roofing company. Loan 7304. Risk band C

This Bristol business has been running since 2011 and has proposed a payment plan.

Couriers. Loan 10341. Risk band B

This Kent business was established in 2009 and is entering liquidation.

Management consultancy. Loan 13690. Risk band B

This Birmingham business has been running since 2012 and is 3 months in arrears.

Farm. Loan 11030. Risk band B

This County Armagh business has become unresponsive after missing repayments.

Turnkey specialist. Loan 20636. Risk band A+

This Suffolk business was established in 2012 and is 2 months in arrears.

Digital marketing agency. Loan 9900. Risk band A+

This Norfolk business has been running since 2009 and is 2 months in arrears.

Benefits of diversification

Lending to businesses can deliver attractive returns, while helping businesses access the finance they need to grow. However, from time-to-time some businesses will be unable to repay their loan, which is why lending a small amount to lots of different businesses is so important. Watch our 90 second diversification video below to find out more.

Our collections and recoveries team are working to recover the outstanding amounts for all of the loans described above and they will provide you with updates in the loan comments section on your summary page. Read how our collections and recoveries process works (part one and part two) on our blog.

Enjoy lending, the Funding Circle team

 

Funding Circle raises further £80 million in equity funding

We’re excited to announce that we have raised a further £80 million in equity capital, which will allow us to continue to invest in building a technology platform that delivers the best customer experience to investors and borrowers across the world.

This investment was led by Accel, alongside existing Funding Circle investors including Baillie Gifford, DST Global, Index Ventures and Temasek. It follows a ~£100 million investment in 2015, and means that Funding Circle is now the best capitalised small business direct lending platform in the world.

You can read the full press release in our media centre. We’re also delighted that the Chancellor of the Exchequer was able to provide a statement on today’s news:

Chancellor of the Exchequer, Philip Hammond, said: “Funding Circle has become a real success story for British Fintech and news that it has attracted £80 million of investment is further evidence of the growing importance of this industry. This is another vote of confidence in a UK firm that plays an important role in our economy – helping businesses to grow and create jobs.”

This new investment follows a successful 2016 for investors lending through Funding Circle. Over the past 12 months, investors have lent over £1.1 billion globally to small businesses globally, with approximately £400 million lent in the last three months alone, a record-breaking amount for any small business direct lending platform. The last quarter also saw Funding Circle UK reach profitability. By lending directly to small businesses looking for finance, you are helping to create jobs and lead the way in building a better financial world.

We’re expecting 2017 to be another year of growth, and we will continue to invest in providing retail investors like you with an even better lending experience. You can expect to see some exciting improvements over the next 12 months, so watch this space!

Enjoy lending,

The Funding Circle team

Look round 14 new family homes | Weekly Lending Review

Week 1: 3 – 6 January

Last month, we met property specialist Richard Southgate who borrowed £1.2 million to build 14 new family homes in the West Midlands. Meet Richard, take a tour of the site and find out why  investors Pat and Dave lend to businesses through Funding Circle in this short video.

New loans available to you

There are currently 9 loan requests on the marketplace, and thousands of loan parts available for you to buy which will help you become diversified.

The total value of new loans listed on the Funding Circle marketplace was £17,690,668, averaging at £79,885 per loan. The largest loan value was £525,046 and the smallest loan value was £5,225.

Business loans available to bid on:

Gross interest rates are before fees and bad debts. Your actual return may be higher or lower as by lending to businesses, your capital is at risk.

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 (The calculation is AGY = (1 + (two week rolling weighted average rate/12))^12 – 1). You can view the latest gross interest rates accepted on the marketplace on our statistics page.

Weekly average gross yield (2 weeks rolling)

WLR 17-1 yield

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

Number of listed loans per week

 WLR 17-1 loans listed

Listed loan value per week

 WLR 17-1 loan value

Total amount lent

 WLR 17-1 amount lent

Loan parts available to buy from other investors

 WLR 17-1 loan parts

News you should know

To be in with a chance of winning £1,000 cash prize, enter the Moneywise Customer Service Awards 2017 today. The awards gives you the opportunity to showcase financial providers you rate most highly, based on customer service experience, and we’d really appreciate your vote.

Loans defaulted last week

Retail display specialist. Loan 1617. Risk band C

This Surrey business was established in 2007 and has organised a meeting of creditors.

Medical consultants. Loan 3786. Risk band C

This Warwickshire business has been running since 2005 and is 3 months in arrears.

Shop. Loan 17383. Risk band D

This Oxfordshire business was established in 2010 and has become unresponsive after missing a repayment.

Plumber. Loan 23263. Risk band C

This Monmouthshire business has been running since 2003 and is being placed into liquidation.

Developers. Loan 11152. Risk band A+

This West Lothian business was established in 2008 and has become unresponsive after missing repayments.

Logistics business. Loan 5892. Risk band A+

This Essex business has been running since 2010 and is being placed into liquidation.

Builder. Loan 11656. Risk band C

This Lancashire business was established in 1997 and is being placed into liquidation.

Manufacturer. Loan 20283. Risk band B

This Manchester business has been running since 2009 and has become unresponsive after missing repayments.

Cleaners. Loan 5857. Risk band A

This West Midlands business was established in 2005 and is being placed into liquidation.

Consultancy. Loan 19846. Risk band A+

This Cumbria business has been running since 2011 and is 3 months in arrears.

Lighting specialist. Loan 14977. Risk band D

This East Sussex business was established in 2009 and has ceased trading.

Medical consultants. Loan 3786. Risk band C

This Warwickshire business has been running since 2005 and is 3 months in arrears.

Metal manufacturer. Loan 9376. Risk band D

This West Midland business was established in 1962 and is being placed into administration.

Window cleaners. Loan 11245. Risk band B

This Sheffield business has been running since 2005 and is over 90 days late.

Benefits of diversification

Lending to businesses can deliver attractive returns, while helping businesses access the finance they need to grow. However, from time-to-time some businesses will be unable to repay their loan, which is why lending a small amount to lots of different businesses is so important. Watch our 90 second diversification video below to find out more.

Our collections and recoveries team are working to recover the outstanding amounts for all of the loans described above and they will provide you with updates in the loan comments section on your summary page. Read how our collections and recoveries process works (part one and part two) on our blog.

Enjoy lending, the Funding Circle team

Happy 2017! | Weekly Lending Review

Week 52: 27 – 30 December

Happy New Year! Thanks to your lending, more than 9,900 UK businesses accessed over £800 million through Funding Circle in 2016, in comparison to just over £530 million in 2015.

To put those fantastic figures into context, a report published in 2016 calculated that since 2010 Funding Circle investors have helped:

  • boost economic activity (measured by GVA) by £2.7 billion
  • create over 40,000 jobs
  • build approximately 2,200 family homes

This shows the measurable impact your lending is now having on the UK economy.

Looking ahead to 2017, there are plenty of businesses for you to lend to so keep your eye on the marketplace over the coming days and weeks for lots more lending opportunities.  Thank you for your continued support.

New loans available to you

There are currently 17 loan requests on the marketplace, and thousands of loan parts available for you to buy which will help you become diversified.

The total value of new loans listed on the Funding Circle marketplace was £5,669,434, averaging at £81,314 per loan. The largest loan value was £434,740 and the smallest loan value was £5,125.

Business loans available to bid on:

Gross interest rates are before fees and bad debts. Your actual return may be higher or lower as by lending to businesses, your capital is at risk.

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 (The calculation is AGY = (1 + (two week rolling weighted average rate/12))^12 – 1). You can view the latest gross interest rates accepted on the marketplace on our statistics page.

Weekly average gross yield (2 weeks rolling)

WLR 52 yield

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

Number of listed loans per week

WLR loans listed 52

Listed loan value per week

WLR loan value 52

Total amount lent

WLR amount lent 52

Loan parts available to buy from other investors

WLR loan parts 52

News you should know

The government-owned British Business Bank is now lending a further £40 million directly to small businesses through Funding Circle. Read the announcement to find out more.

There were no loans defaulted over Christmas week

Enjoy lending, the Funding Circle team

British Business Bank lends further £40m to small businesses

The government-owned British Business Bank will today begin lending a further £40 million directly to small businesses through the Funding Circle platform. This follows an initial £40 million investment by the British Business Bank in 2014, and a £20 million investment made by the UK government in 2013 through the Business Finance Partnership.

The British Business Bank aims to support economic growth by increasing choice of finance for small and medium sized businesses. Over 10,000 businesses have benefited from the combined £60 million in lending to date, supporting the creation of an estimated 30,000 jobs*. Since March 2013 over £5 million in interest, after fees and bad debt, has been earned on behalf of the UK taxpayer.

Before we launched in 2010, small businesses were reliant on a small number of high street banks for finance. Over the past six years, a diverse range of investors have for the first time been able to lend directly to these businesses.

The British Business Bank is lending alongside 55,000 people, local councils, financial institutions and the European Investment Bank. To date, you have lent over £1.7 billion to more than 18,000 UK small businesses, providing a £2.7 billion boost to the UK economy.* This new commitment is recognition of the success of the programme to date, and the role investors lending through Funding Circle are playing in supporting the backbone of the British economy.

How will the British Business Bank lend on the platform?

The British Business Bank will continue to lend directly through the partial loan marketplace to UK businesses that meet their lending criteria. The bank will lend on the same terms as other investors in the loan.

Over the past few months you have lent to a record-breaking number of small businesses, with over £300 million lent in the last quarter of 2016. We expect 2017 to be another year of growth, with significantly more lending opportunities for investors than in previous years. To help meet this demand, the British Business Bank will increase the proportion they lend to each eligible business from 10% to 20% ‒ similar to when the UK government first began lending through Funding Circle through the Business Finance Partnership. This will allow more loans to be listed to the partial loan marketplace, resulting in a wider range of businesses for you to lend to and to diversify across.

The proportion the British Business Bank lends on each eligible loan may change in future, however it will not exceed 20% of any one loan. You can read more about the British Business Bank’s involvement in our FAQs.

If you have any questions about today’s news, please get in touch.

Enjoy lending,

The Funding Circle team

* Source: ‘Small Business, Big Impact’ research, Cebr, 2016

Your Funding Circle Guide to Christmas 2016 – Pt 4

Another Christmas has come and gone, and we’ve all had a great time seeing family and friends, singing carols, and eating our body weight in turkey and chocolates. The big day may now be over, but we hope you’re still very much in the holiday mood. In our guide so far we’ve already looked at ideas for presents, Christmas supplies, and stocking fillers. Now for the final part we’re showcasing ideas from our marketplace for amazing things to do over the rest of the holiday season.

Christmas activities

Wookey Caves & Winter Wonderland

Are you looking for a seasonal spectacular to cap off your holidays? Alongside their world famous caves, at Wookey Hole in Somerset you can pay Santa a visit at their Winter Wonderland. With live reindeer, a Christmas Circus show, and a 4D theatre, you can really have a trip to remember. To open up new caves and help with working capital, Wookey Caves borrowed £260,000 in 2015.

Butterfly Jungle Experience

Leave winter behind with a trip to The Butterfly Jungle Experience at Hall Place in Kent. You can walk among the free flying butterflies and exotic flowers in this slice of rainforest, learning about their lifecycle and observing them at their special feeding stations. With hundreds of butterflies to see, this is a experience to remember for all the family. To expand into new premises, Butterfly Jungles borrowed £50,000 from Funding Circle in 2016.

Xtreme Karting

If you’re after a more high octane day out, then Xtreme Karting could be the one for you. Based in Edinburgh and Falkirk, they offer both junior and adult karting as well as simulated combat experiences, so there’s plenty of adrenaline pumping action to wake you up from your food coma! Xtreme Karting used Funding Circle to help grow their business.

Kidz About Play Park

If the kids are getting restless and you’ve gone through all your favourite Disney films four times already, why not take them out to Kidz About Play Park in Swindon? They can play on the giant play frame and bouncy castle assault course, plus there’s a separate section for babies and toddlers. Kidz About borrowed £95,000 over two loans to invest in a new adventure golf course.

Are you interested in lending to businesses like these?

Lend alongside 55,000 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?

We’ve helped more than 19,000 businesses access finance for a range of finance needs, including hiring staff, opening new shops and working capital. Get your instant quote today.

Enjoy lending. The Funding Circle team

Your Funding Circle Guide to Christmas 2016 – Pt 3

A quick look at the advent calendar tells us that the main event is now only days away — where did December go?? Hopefully you’ve been getting stuck into the mince pies and mulled wine, and have already sorted everything for your Christmas holiday. We’ve been helping out with suggestions for presents as well as food, drink and decorations, but if you’ve still got some shopping left to do, this week we’ll be sharing some great ideas from our marketplace for last minute stocking fillers.

Christmas stocking fillers

Psychobabel & Skoob Books

We all have at least one friend who loves to read, the one who’s already read every suggestion you’ve ever given them. Now you can surprise them with one of the rare books from Psychobabel & Skoob. They have over 110,000 rare, used, and out of print books in their London store and available online, so you can find a truly unique gift this Christmas. Psychobabel & Skoob borrowed £25,000 from Funding Circle to improve their warehouse facilities and online ordering.

Crocodile Toy Shop

Whether it’s Lego, a magic set, or your new favourite stuffed penguin, opening up new toys on Christmas morning is guaranteed to put a smile on your face. Cirencester’s Crocodile Toy Shop has been supporting play times for over 30 years, and they could help you find that missing piece for the stocking this Christmas. To help improve stock levels, Crocodile Toy Shop has borrowed £150,000 over two loans from Funding Circle.

Nothing But Tea

Coming in from the cold to a warming brew is one of winter’s great pleasures, so why not up your game with a delightful box of loose leaf tea from Nothing But Tea? The family-run tea shop have a wealth of experience in tea and stock over 200 different types! We’d recommend their Dessert Tea Collection, which includes a Rooibos Creme Brulee, Pear Marzipan Tart and a Honeybush Chocolate Cake tea. To increase stock levels to ensure prompt service, Nothing But Tea borrowed £10,000 in February 2011.

Farm & Pet Place

Is your cat lord of the household? Do you love your dog more than your in-laws? If so, you need to make sure they don’t miss out this Christmas. Farm & Pet Place have a huge range of pet toys and treats, as well as equine, agriculture and garden ware, so you can give your animals some extra love this year. Farm & Pet Place borrowed £215,000 to refurbish their flagship store in Abergele.

Swagger & Swoon

Do you know a man who prides himself on looking sharp? Whether he’d love something for his carefully sculpted beard or his ever growing range of dashing cravats, Swagger & Swoon can help you out. They’ve been supplying high quality men’s accessories and grooming products for 12 years, and are taking online Christmas orders up until 22nd December! To expand their product range and improve their online experience, Swagger & Swoon borrowed £10,000 from Funding Circle in 2016.

That’s all for this week. Next up on our guide we’ll be showcasing ideas for great things to do over the Christmas holiday.

Are you interested in lending to businesses like these?

Lend alongside 55,000 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?

We’ve helped more than 19,000 businesses access finance for a range of finance needs, including hiring staff, opening new shops and working capital. Get your instant quote today.

Enjoy lending. The Funding Circle team

Highlights from 2016

As the new year approaches, we wanted to take a moment to share with you some of our highlights from an incredible 2016.

Together, you have now helped over 24,000 businesses access nearly £2.4 billion across the UK, US, Germany, Spain and the Netherlands. In the UK alone, you have lent £725 million to over 8,000 businesses in 2016.

We have connected with our colleagues from across the US and Europe to bring you this short video. You’ll be able to hear from members of the team, their personal highlights and some of the borrowers you may have lent to.

 

From everyone at Funding Circle, we would like to wish you a merry Christmas and a happy New Year, and thank you for helping to build a better financial world.

Enjoy lending,

The Funding Circle team