What a month! | Weekly Lending Review

Week 47: 21 – 25 November

You and other investors lent a sensational £112.9 million to more than 1,500 UK businesses in November. Reaching £100 million lent in one month is a huge milestone for the Funding Circle community as we strive to help even more small businesses access simple and affordable finance. Thank you for your continued support.

New loans available to you

There are currently 12 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 also a record-breaking £28,019,800, averaging at £76,053 per loan. The largest loan value was £511,680 and the smallest loan value was £5,000.

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 47 yield

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

Number of listed loans per week

WLR 47 loans listed

Listed loan value per week

WLR 47 loan value

Total amount lent

WLR 47 amount lent

Loan parts available to buy from other investors

WLR 47 loan parts

Loans defaulted last week

Agricultural merchant. Loan 5637. Risk band B

This County Down business was established in 2006 and has been placed into insolvent liquidation.

Film producers. Loan 9841. Risk band B

This Somerset business has been running since 2012 and has become unresponsive after missing repayments.

Caterers. Loan 13262. Risk band C

This London business was established in 2011 and is 3 months in arrears.

Electrical contractors. Loan 9529. Risk band D

This Tyne and Wear business is 3 months in arrears.

Advertising suppliers. Loan 16172. Risk band B

This London business has been running since 2004 and is 2 months in arrears.

Technology specialist. Loan 10627. Risk band A

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

Lighting specialist. Loan 20701. Risk band E

This Hertfordshire business has been running since 1995 and was placed into administration in October 2016.

Consultancy. Loan 24571. Risk band A

This Middlesex business was established in 2011 and requested voluntary dissolution in September 2016.

Hauliers. Loan 8295. Risk band C

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

Electrics supplier. Loan 21715. Risk band A

This West Glamorgan business has was established in 2007 and is being placed into insolvent liquidation.

Coffee shop. Loan 21918. Risk band A

This Hertfordshire business has been running since 2001 and has proposed a Company Voluntary Arrangement.

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

Record-breaking week! | Weekly Lending Review

Week 46: 14 – 18 November

Last week, you and other investors helped over 460 businesses across the UK access a record £32 million to grow and prosper. Log in to view current lending opportunities on the marketplace.

Record amount of loans listed on the marketplace

There are currently 24 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 also a record-breaking £29,005,960, averaging at £69,887 per loan. The largest loan value was £537,780 and the smallest loan value was £5,000.

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)

We updated our interest rates on 7 November. Find out more about the change in our blog.

WLR 46 - yield

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

Number of listed loans per week

WLR 46 loans listed

Listed loan value per week

WLR 46 loan value

Total amount lent

WLR 46 amount lent

Loan parts available to buy from other investors

WLR 46 loan parts

News you should know

Funding Circle borrower Newton Farm Foods has been named Family Business of the Year 2016 at the British Farming Awards. Huge congratulations to Celia and the team. Find out how your lending helped the Gay family refurbish their farm shop and cafe in this short video.

Deloitte Technology Fast 50

We were delighted to be ranked 16th in the Deloitte Technology Fast 50, which ranks the country’s 50 fastest growing technology companies, driven by leading intellectual property and based on revenue growth over the last four years.

Loans defaulted last week

Joiner. Loan 1610. Risk band C

This Dorset business has been running since 1961 and was placed into administration in October 2016.

Ecohome specialist. Loan 20694. Risk band A+

This Bedfordshire business was established in 2008 and is being placed into liquidation.

Employee assistance programmes. Loan 6926. Risk band D

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

Children’s play centre. Loan 21859. Risk band B

This Cheshire business was established in 2009 and is 3 months in arrears.

Home improvements. Loan 4899. Risk band C

This Monmouthshire business has been running since 2007 and is being defaulted to crystallise the liability of the guarantor.

Lighting specialist. Loan 3930. Risk band D

This Surrey business was established in 2010 and has become unresponsive after missing repayments.

DIY products wholesaler. Loan 24783. Risk band A

This Bedfordshire business has been running since 1983 and was placed into administration in November 2016.

Sofa manufacturer. Loan 4296. Risk band A

This Tyne and Wear business was established in 2006 and been placed into administration.

Wiper blade manufacturer. Loan 3295. Risk band C

This Merseyside business has been running since 2000 and has entered a Company Voluntary Arrangement.

Hauliers. Loan 7951. Risk band B

This County Down business was established in 2004 and has ceased trading.

Consultancy. Loan 9309. Risk band C

This Middlesex business has been running since 2010 and is consulting a debt charity.

Pipework contractors. Loan 11118. Risk band B

This Cheshire business was established in 2006 and has been placed into administration.

Internet service provider. Loan 7276. Risk band A

This Surrey business has been running since 2010 and has entered a Company Voluntary Arrangement.

Estate agent. Loan 17659. Risk band A+

This Leeds business was established in 2010 and has ceased trading.

Grocery shop. Loan 7090. Risk band A

This London business has been running since 2009 and has ceased trading.

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

Our favourite winter warmers | Weekly Lending Review

Week 45: 7 – 11 November

Whether you prefer some cosy cashmere, a beautiful beanie or a long soak in a bubble bath, we’ve put together a 6 step guide to help you keep cosy this winter.

New loans available to you

There are currently 24 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 £25,379,560, averaging at £72,438 per loan. The largest loan value was £567,020 and the smallest loan value was £5,000.

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 45 yield

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

Number of listed loans per week

WLR 45 loans listed

Listed loan value per week

WLR 45 loan value

Total amount lent

WLR 45 amount lent

Loan parts available to buy from other investors

WLR 45 loan parts

Loans defaulted last week

Architects. Loan 23047. Risk band A

This Aberdeenshire business was established in 2006 and has been placed into liquidation.

Nursery. Loan 5149. Risk band C

This Cardiff business has been running since 2010 and has entered formal insolvency proceedings.

Consultancy. Loan 9309. Risk band C

This Middlesex business was established in 2010 and has consulted a debt charity.

Service station. Loan 9543. Risk band B

This North Wales business is 4 months in arrears.

Manufacturer. Loan 19010. Risk band C

This Dorset business has been running since 1961 and was placed into administration in October 2016.

Flooring specialist. Loan 20126. Risk band C

This Hertfordshire business was established in 2012 and is being placed into insolvent liquidation.

Garage. Loan 6845. Risk band B

This Yorkshire business has been running since 2014 and has proposed an Individual Voluntary Arrangement.

Building maintenance company. Loan 6359. Risk band C

This Nottinghamshire business was established in 2010 and is being placed into insolvent liquidation.

Lighting specialist. Loan 20701. Risk band E

This Hertfordshire business has been running since 1995 and was placed into administration in October 2016.

Distribution company. Loan 23220. Risk band D

This County Down business was established in 2012 and has ceased trading.

Builders. Loan 14062. Risk band B

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

Commercial cleaners. Loan 17803. Risk band A

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

Renewable energy services. Loan 18448. Risk band B

This Yorkshire business has been running since 2012 and is being placed into liquidation.

Pharmacy. Loan 8197. Risk band A

This Aberdeenshire business was established in 2001 and is 3 months in arrears.

Steel works. Loan 6689. Risk band D

This Carmarthenshire business has been running since 2006 and is being placed into a formal insolvency process.

Telecoms consultancy. Loan 24571. Risk band A

This Middlesex business was established in 2011 and has requested voluntary dissolution.

Steel specialist. Loan 15664. Risk band A+

This Lancashire business has been running since 2000 and is being placed into insolvent liquidation.

Manufacturer. Loan 17174. Risk band E

This Tyne and Wear business was established in 1999 and has entered a Company Voluntary Arrangement.

Estate agent. Loan 17659. Risk band A+

This Leeds business has been running since 2010 and has ceased trading.

Haulage company. Loan 7951. Risk band B

This County Down business was established in 2004 and has ceased trading.

DIY products wholesaler. Loan 24783. Risk band A

This Bedfordshire business has been running since 1983 and has been placed in administration.

Aluminium specialist. Loan 8846. Risk band B

This West Sussex business was established in 2010 and is being placed into insolvent liquidation.

Packaging company. Loan 22733. Risk band A

This Hampshire business has been running since 2010 and has ceased trading.

Marketing agency. Loan 19690. Risk band C

This Glasgow business was established in 2003 and has requested voluntary dissolution.

Telesales company. Loan 8786. Risk band C

This Glasgow business has been running since 2012 and has become unresponsive after missing repayments.

Fishing bait producers. Loan 15287. Risk band A

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

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

Highlights from our 5th investor evening | Weekly Lending Review

Week 44: 31 October – 4 November

This week we launched new interest rates, and posted highlights from our 5th investor evening. Take a deep dive into the key themes from the evening, including how your lending is playing a vital role in the UK economy, in this short video.

New loans available to you

There are currently 13 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 £23,385,200, averaging at £70,884 per loan. The largest loan value was £513,360 and the smallest loan value was £5,000.

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 44 yield

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

Number of listed loans per week

WLR 44 loans listed

Listed loan value per week

WLR loan value

Total amount lent

WLR amount lent

Loan parts available to buy from other investors

WLR loan parts

News you should know

We were delighted to be named ‘Specialist Lender of the Year’ at the NACFB Gala Dinner and Industry Awards last week.

Loans defaulted last week

Security company. Loan 18236. Risk band D

This Yorkshire business has been running since 2013 and is being placed into liquidation.

Builders. Loan 15098. Risk band D

This West Sussex business was established in 2009 and is being placed into liquidation.

Glazing specialist. Loan 14146. Risk band E

This Norfolk business has been running since 2011 and is being placed into liquidation.

Restaurant. Loan 6607. Risk band B

This Tyne and Wear business was established in 2007 and is being placed into liquidation.

Interior designers. Loan 20109. Risk band A

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

Petrol station. Loan 13581. Risk band C

This Hampshire business was established in 2012 and is 3 months in arrears.

Display equipment supplier. Loan 9275. Risk band A+

This Hampshire business has been running since 1992 and is being placed into liquidation.

Agricultural product wholesaler. Loan 12553. Risk band B

This Northern Ireland business was established in 2006 and is being placed into liquidation.

Audio visual specialist. Loan 20587. Risk band B

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

Recruiter. Loan 16279. Risk band A

This London business was established in 2002 and is being placed into liquidation.

IT reseller. Loan 13970. Risk band B

This Lancashire business has been running since 2011 and is being placed into liquidation.

Reptile retailer. Loan 9452. Risk band A+

This Monmouthshire business was established in 2004 and is being placed into liquidation.

Car showroom. Loan 17369. Risk band A+

This Midlothian business has been running since 1999 and is being placed into liquidation.

Lifestyle business. Loan 21214. Risk band C

This London business was established in 2009 and was dissolved in June 2016.

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

Highlights from our summer investor evening

This summer, we welcomed 60 investors to our office in London for our fifth investor evening. We always enjoy meeting you, these evenings are a great way for you to find out what we have been working on, as well as providing a forum to give feedback. We hope those who attended had a great evening ‒ we really appreciate you taking the time to visit us.

For those who weren’t able to attend, we have put together a couple of videos from the evening. The first is a quick two minute highlight video showing how the evening went.

 

We also wanted to share an extended highlights video, outlining some of the key themes of the evening:

Key Themes:

Playing a vital role in the economy

James Meekings, Co-founder and UK Managing Director, gave an overview of the positive impact your lending has had on the UK economy since 2010, along with an update on what the EU referendum means for Funding Circle. Read more on how your lending has boosted the U.K Economy by £2.7 billion since 2010.

Delivering a strong and consistent credit performance

Jerome Le Luel, our Global Chief Risk officer, discussed how we use a balanced mix of risk tools when assessing businesses to ensure we create a full picture of a borrower’s financial health.

Jerome also discussed our recent work in stress-testing the Funding Circle loanbook. You can see what could happen to your returns in the event of the UK entering a recession on our blog. Remember, by lending to businesses your capital is at risk.

Supporting Britain’s small homebuilders

Luke Jooste, head of Real Estate & Broker Introduced Finance, talked about how Funding Circle investors are providing a solution to Britain’s housing crisis, helping to bridge the funding gap that small property developers face. We’ll be discussing more on how property lending works at Funding Circle in the coming months.

Working hard to recover your investment

Andrew Jackson, head of Collections and Recoveries, shared how the recovery rate on defaulted loans has increased since bringing our Collections and Recoveries team in-house in 2014. He also spoke about our ‘survival for revival’ strategy – which often yields the best long term results for investors.

You can read more on how our collections and recoveries process works here.

We always look forward to meeting you, and will hold more of these evenings in the future. Look out for invitations in future weekly and monthly newsletters.

Enjoy lending,

The Funding Circle team

We’re changing our interest rates | Weekly Lending Review

Week 43: 24 – 28 October

We regularly review our interest rates, taking into account a number of factors including macroeconomic trends and wider competition in the marketplace. Following our recent review, we’ll be updating our interest rates on Monday 7 November 2016. Read more about the new interest rates in our blog.

Please note the new interest rates will not affect any loan parts you currently hold and there’s nothing you need to do.

New loans available to you

There are currently 5 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 £24,867,920, averaging at £79,189 per loan. The largest loan value was £572,260 and the smallest loan value was £5,000.

Business loans available to bid on:

Loan parts available for you to buy:

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 43 yield

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

Number of listed loans per week

WLR 43 loans listed

Listed loan value per week

WLR 43 loan value

Total amount lent

WLR 43 amount lent

Loan parts available to buy from other investors

WLR 43 loan parts

News you should know

We’ve been included in the Future of Fintech Awards shortlist, which lists the top 10 financial technology companies to watch. Find out more in the FT.

Loans defaulted last week

Clothes shop. Loan 1248. Risk band E

This London business has been running since 2003 and was placed into liquidation in October 2016.

Restaurant. Loan 8813. Risk band C

This Gloucestershire business was established in 2014 and was declared bankrupt in September 2016.

Hairdressers. Loan 18589. Risk band E

This Merseyside business has been running since 2011 and is being placed into liquidation.

Gas mains specialist. Loan 21322. Risk band D

This Glasgow business was established in 2011 and was placed into administration in October 2016.

Digital agency. Loan 11506. Risk band C

This London business has been running since 2009 and is 3 months in arrears.

Building maintenance service. Loan 21193. Risk band C

This West Sussex business was established in 2006 and is 3 months in arrears.

Shop. Loan 6028. Risk band B

This West Midlands business has been running since 2009 and is 3 months in arrears.

Car showroom. Loan 25739. Risk band B

This West Midlands business was established in 2011 and is being placed into liquidation.

Dairy farm. Loan 9228. Risk band B

This County Tyrone business is 3 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

Changes to Funding Circle’s UK rates

At Funding Circle, our aim is for investors to be able to earn attractive returns that reflect the level of risk involved when lending to businesses. As part of this commitment, we regularly review our rates, taking a number of factors into account including macroeconomic trends, expected bad debt rates and wider competition in the market.

Over the last six years you have helped over 17,000 small businesses access finance. This has provided us with more credit performance data, allowing us to make even more accurate pricing decisions.

Following our recent review, we wanted to let you know about some upcoming changes to the fixed interest rates on the Funding Circle marketplace.

The new rates will not affect any loan parts you currently hold, and will not apply to property loans, which are priced individually. Taking into account the rate changes across all risk bands, and the proportion of loans we expect to list in each risk band, we expect the estimated return for investors with a diversified portfolio, after fees and bad debt, to be approximately 7.0%.

As an example, If we applied these new rates to the last 100 loans accepted on the marketplace (as of 19th October 2016), we estimate that the annual return for those loans after fees and bad debt, but before tax, would be 7.0%.*

What are the new rates?

From 7th November 2016, we will begin to list small business loans in the UK at the gross interest rates below. These rates are shown before fees and bad debts.

new_rate_table_20161027

As some borrowers will have begun their application before the new rates are introduced, you may see loans listed at different rates for the same risk band and term length for up to 15 days from 7th November.

There will be no change to our estimated bad debt rates due to this change. You can see our estimated bad debt rates by risk band on our statistics page, and remember that by lending to businesses your capital is at risk.

If you use Autobid to lend to businesses, there is nothing you need to do as Autobid will continue to place bids on new loans at the new rates. The interest rates you currently have saved in your Autobid settings will still apply for buying loan parts on the secondary market. If you want to update your settings in order to buy loan parts on the secondary market at different rates, you can update them by logging into your account and navigating to Autobid.

How have the rates changed?

We are lowering rates for A+, A and B risk bands and increasing them for C (except for loans with a 6 month term, which are being lowered), D and E bands. You can see how the new rates compare to our current rates in the table below.

new_rate_table-changes-05

Why are the rates changing?

The new rates ensure we can continue to compete in an increasingly competitive market for lower-risk borrowers.

In addition, increasing the rates for some of our higher-risk bands will increase the loss coverage on those risk bands. The loss coverage is the number of times the estimated bad debt for that risk band would need to increase by, before it begins to affect the initial amount invested by investors. Loss coverage is important to consider when thinking about what might happen in an economic downturn.

The loss coverage for loans across all risk bands under the new rates will be 4.0x. Our latest stress tests estimate that in a downturn similar to the one experienced in 2008, bad debt for small business loans could increase by 2.0x. You can read more on how investor returns could be affected in an economic downturn here.

What does this mean for overall returns?

We anticipate that returns after fees and bad debt, but before tax, for investors with a well-diversified portfolio will not be significantly impacted by the new rates. There will be no change to our estimated bad debt rates due to this change. Looking at the proportion of loans we expect to list in each risk band after the new rates are introduced, we estimate that the annual return for investors across these loans, after fees and bad debt, will be approximately 7.0%.

This is similar to the estimated annual return for loans originated on the Funding Circle marketplace since 2014, seen in the table below.**

origination-date

Since the Bank of England’s decision to cut the base rate in August, we have seen a general trend of falling interest rates across the wider market. The 7% estimated return is market leading when compared to other major peer-to-peer lending platforms. Past performance is not a guide to future performance, and by lending to businesses your capital is at risk.

This blog was updated with further information on 31/10/2016 at 18:00. Please note these rates only apply to the UK marketplace.

Enjoy lending,

The Funding Circle team

*This estimated return is an estimate of the annual return after fees and bad debts that investors could earn. 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 100 loans accepted on the marketplace (as of 19th October 2016). The average return is compounded and before tax. You can see the full calculation for the current estimated return, which looks at the last 100 loans accepted on the marketplace, here.

**Data correct as of 1st October 2016. You can see the full calculations for past performance by loan origination year here.

4 ghoulishly good Halloween ideas | Weekly Lending Review

Week 42: 17 – 21 October

Halloween is just round the corner: Whether you’re looking for petrifying pumpkins, spooky sweets or creepy costumes our list of  4 hauntingly good Halloween ideas from Funding Circle borrowers will ensure you have a ghoulishly good night.

New loans available to you

There are currently 10 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 £23,333,500, averaging at £79,004 per loan. The largest loan value was £500,000 and the smallest loan value was £5,000.

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 42 yield

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

Number of listed loans per week

WLR 42 loans listed

Listed loan value per week

WLR 42 loan value

Total amount lent

WLR 42 amount lent

Loan parts available to buy from other investors

WLR 42 loan parts

Loans defaulted last week

School. Loan 18036. Risk band A+

This London business has been running since 2005 and was placed into administration in October 2016.

Marketing agency. Loan 5128. Risk band C

This Norfolk business was established in 2010 and is 3 months in arrears.

Management consultancy. Loan 4244. Risk band B

This Lancashire business has been running since 2005 and is 4 months in arrears.

Planning consultancy. Loan 9273. Risk band B

This Yorkshire business was established in 2009 and is 3 months in arrears.

Marketing material supplier. Loan 422. Risk band C

This Northamptonshire business has been running since 2007 and is 4 months in arrears.

Car dealership. Loan 12612. Risk band C

This Wiltshire business is 4 months in arrears.

Fish & chip shop. Loan 21262. Risk band C

This Ayrshire business was established in 2012 and is 3 months in arrears.

Construction training provider. Loan 16533. Risk band C

This County Durham business has been running since 1997 and was placed into liquidation in October 2016.

Restaurant. Loan 4974. Risk band A

This West Midlands business was established in 2004 and was placed into liquidation in October 2016.

Printer. Loan 8202. Risk band C

This Nottinghamshire business has been running since 2002 and is being placed into liquidation.

Drum retailer. Loan 4085. Risk band B

This Tyne and Wear business was established in 2006 and is being placed into liquidation.

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

Telegraph: how can I get 8pc for the least risk? | Weekly Lending Review

Week 41: 10 – 14 October

In your round-up of last month’s industry news, The Telegraph discusses the benefits of online lending and we’re pleased to welcome Eric Daniels, former Chief Executive of Lloyds TSB, to the Funding Circle family.

New loans available to you

There are currently 12 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 £23,743,340, averaging at £82,398 per loan. The largest loan value was £500,000 and the smallest loan value was £5,000.

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 41 yield

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

Number of listed loans per week

WLR 41 loans listed

Listed loan value per week

WLR 41 loan value

Total amount lent

WLR 41 amount lent

Loan parts available to buy from other investors

WLR 41 loan parts

News you should know

Lord Turner turns from critic to fan of online lending

Speaking at the LendIt Europe conference last week, Lord Turner, former chairman of the UK’s financial regulator, said marketplaces like Funding Circle, are ‘likely to become a stable and useful part of the credit supply system.’ Find out more in Bloomberg.

Top 10 London Startups with the Most Gender Equal Commercial Teams

This week, it was great to be ranked one of the Top 10 London Startups with the Most Gender-Equal Commercial Teams.

4 hauntingly good Halloween ideas

Stock up on decorations, sweets and costumes from these 4 small businesses to ensure a ghoulishly good night this Halloween.

Loans defaulted last week

Shop. Loan 1515. Risk band A

This Somerset business has been running since 2000 and is 3 months in arrears.

Motorcycle specialist. Loan 2427. Risk band C

This London business was established in 2007 and has ceased trading.

Videographer. Loan 17271. Risk band E

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

Online retailer. Loan 19119. Risk band D

This Hertfordshire business was established in 2012 and is being placed into liquidation.

Manufacturer. Loan 20161. Risk band C

This London business has been running since 1993 and is being placed into liquidation.

Fabric structure specialist. Loan 7424. Risk band A

This Somerset business was established in 2001 and is being placed into liquidation.

Construction company. Loan 16023. Risk band A

This Kent business has been running since 2006 and is being placed into liquidation.

Wine manufacturer. Loan 641. Risk band A

This Gloucestershire business was established in 2002 and has proposed a Company Voluntary Arrangement.

Financial advisers. Loan 20538. Risk band A+

This Yorkshire business has been running since 2007 and was placed into liquidation in May 2016.

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

Excellence award for our Collections team! | Weekly Lending Review

Week 40: 3 – 7 October

Last week, our Collections team won the Credit Excellence Award in Collections 2016 and you helped more than 190 UK businesses access much needed finance.

We also launched a fun cryptic puzzle, Brandscape, which we thought you might enjoy. Find 60 global brands in the landscape below to become a BrandscapeMaster. Play Brandscape.

brandscape image

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 £18,579,040, averaging at £74,878 per loan. The largest loan value was £555,340 and the smallest loan value was £5,000.

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 40 Yield

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

Number of listed loans per week

WLR 40 loans listed

Listed loan value per week

WLR 40 loan value

Total amount lent

WLR 40 amount lent

Loan parts available to buy from other investors

WLR 40 loan parts

Loans defaulted last week

Language school. Loan 6170. Risk band B

This Conwy business was established in 2006 and is 3 months in arrears.

Bakery. Loan 15349. Risk band A

This Antrim business has been running since 2011 and has become unresponsive after missing repayments.

Office supplies. Loan 17272. Risk band D

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

Shop. Loan 7266. Risk band C

This Fife business has been running since 2008 and was dissolved in September 2016.

Automotive parts specialist. Loan 8375. Risk band A

This Birmingham business was established in 1986 and is being placed into Company Voluntary Liquidation.

Electrical contractor. Loan 20765. Risk band B

This Essex business has been running since 2011 and has proposed a Company Voluntary Arrangement.

Construction company. Loan 7145. Risk band B

This Cambridgeshire business was established in 2002 and is being placed into liquidation.

Manufacturer. Loan 22965. Risk band A

This West Midlands business has been running since 2010 and has entered administration.

Site clearance specialist. Loan 14054. Risk band D

This Lancashire business was established in 2009 and has ceased trading.

Restaurant. Loan 22671. Risk band A

This Bristol business has been running since 2008 and has been closed for the last 2 months.

Legal cost service. Loan 12066. Risk band B

This Tyne and Wear business was established in 2009 and was placed into administration in March 2016.

Pipework specialist. Loan 15703. Risk band B

This Somerset business has been running since 2012 and is being placed into liquidation.

Building suppliers. Loan 14115. Risk band C

This Lancashire business was established in 2011 and is being placed into liquidation.

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

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

 

You lent a record £25 million last week! | Weekly Lending Review

Week 39: 26 – 30 September

Last week, you and other investors lent a record-breaking £25 million to over 330 British businesses. In one week!

Log in to view current lending opportunities on the marketplace.

Record amount of loans listed on the marketplace

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 also a record-breaking £23,848,560, averaging at £69,829 per loan. The largest loan value was £581,540 and the smallest loan value was £5,000.

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 39 yield

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

Number of listed loans per week

WLR 39 loans listed

Listed loan value per week

WLR 39 loan value

Total amount lent

WLR 39 amount lent

Loan parts available to buy from other investors

WLR 39 loan parts

Consumer Moneyfacts Awards 2017

We’ve been shortlisted at the Consumer Moneyfacts Awards 2017 for Peer-to-peer Provider of the Year, which helps the public make the most of their money by showcasing the very best products and providers available when looking at their personal finances.

Voting takes a couple of minutes and we’d really appreciate your vote. Completing the survey will also mean you’re entered into a prize draw to win £1,000! Terms and conditions apply.

Loans defaulted last week

Dairy farm. Loan 5345. Risk band A

This Carmarthenshire business was established in 2015 and has become unresponsive after missing repayments.

Print brokers. Loan 2002. Risk band B

This Dorset business has been running since 2007 and has become unresponsive after missing repayments.

Solar energy specialist. Loan 18129. Risk band B

This West Glamorgan business was established in 2013 and has become unresponsive after missing repayments.

Computer software consultancy. Loan 20241. Risk band A

This Kent business has been running since 2010 and is 3 months in arrears.

Renewable energy system installer. Loan 17131. Risk band B

This North Yorkshire business was established in 2006 and is being placed into liquidation.

Security system specialist. Loan 13034. Risk band D

This Warwickshire business has been running since 2011 and has become unresponsive after missing repayments.

Digital agency. Loan 24512. Risk band A+

This Dorset business was established in 2003 and is being placed into liquidation.

Car workshop. Loan 6282. Risk band B

This West Sussex business has been running since 2005 and is being placed into liquidation.

Jeweller. Loan 1667. Risk band B

This Derbyshire business was established in 2007 and has become unresponsive after missing repayments.

Hair salon. Loan 12136. Risk band B

This Hertfordshire business has been running since 2012 and is being placed into liquidation.

Care service. Loan 4509. Risk band D

This Kent business was established in 2009 and is 3 months in arrears.

Gas installation specialist. Loan 11529. Risk band D

This Glasgow business has been running since 2012 and is being placed into liquidation.

Taxi company. Loan 10052. Risk band C

This Cornwall business was established in 2009 and was dissolved in September 2016.

Locksmith. Loan 8605. Risk band C

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

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

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

We’ve hit £1.5 billion | Weekly Lending Review

Week 38: 19 – 23 September

You and other investors have helped lend a fantastic £1.5 billion to British businesses. Thank you for your continued support!

Record amount of loans listed on the marketplace

There are currently 20 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 a record-breaking £22,072,860, averaging at £70,198 per loan. The largest loan value was £646,360 and the smallest loan value was £5,000.

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 38 yield

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

Number of listed loans per week

WLR 38 loans listed

Listed loan value per week

WLR 38 loan value

Total amount lent

WLR 38 amount lent

Loan parts available to buy from other investors

WLR 38 loan parts

Brandscape: the cryptic puzzle from Funding Circle

Ready for a challenge? Find 60 global brands in this cryptic puzzle to become a BrandscapeMaster. To start you off we will give you one clue for free. We may have included ourselves…

brandscape

Oktoberfest: Raise a glass to these 4 glorious breweries!

Whether you’re heading to Oktoberfest or just fancy a pint, toast your friends and family with a special something from this list of Funding Circle borrowers.

Loans defaulted last week

Manufacturer. Loan 1980. Risk band B

This Hampshire business has been running since 1999 and is three months in arrears.

Restaurant. Loan 9177. Risk band C

This Yorkshire business was established in 2008 and the borrower has ceased trading.

Event support specialists. Loan 9423. Risk band A

This Buckinghamshire business has been running since 2006 and is three months in arrears.

Care home. Loan 9987. Risk band B

This Merseyside business was established in 2008 and is three months in arrears.

Manufacturer. Loan 5313. Risk band A+

This West Yorkshire business has been running since 2006 and is three months in arrears.

Restaurant. Loan 17320. Risk band C

This Manchester business was established in 2011 and is being placed into liquidation.

Game developers. Loan 21601. Risk band A

This Essex business has been running since 2010 and is three months in arrears.

Ceiling specialist. Loan 18214. Risk band A

This Manchester business was established in 2011 and is four months in arrears.

Shop. Loan 6321. Risk band B

This West Lothian business is three months in arrears.

Pet shop. Loan 9585. Risk band B

This Essex business has been running since 2003 and was placed into administration in September 2016.

Hotel. Loan 3279. Risk band C

This Nottinghamshire business was established in 2005 and was placed into liquidation in July 2016.

Marketing agency. Loan 15020. Risk band A

This London business has been running since 2007 and has been dissolved.

Jewellers. Loan 2074. Risk band C

This Surrey business was established in 2005 and was placed into liquidation in September 2016.

Web developers. Loan 23045. Risk band B

This Hampshire business has been running since 2012 and is being placed into liquidation.

Physiotherapist. Loan 13029. Risk band A

This Hampshire business was established in 2012 and is being placed into liquidation.

Kitchen manufacturer. Loan 4522. Risk band B

This Hampshire business has been running since 2007 and was placed into administration in September 2016.

Shop renovators. Loan 15165. Risk band D

This Kent business was established in 2012 and has become unresponsive after missing repayments.

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

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

 

You’ve helped lend over £1.5 billion to British businesses!

Stop press. We’ve hit £1.5 billion lent to British businesses!

It was after 5 years, 4 months and 10 days we celebrated hitting £1 billion lent, and just 9 months later we’re at £1.5 billion! Thank you for your continued support.

Butchers, bakers and candlestick makers

You and other investors have helped more than 16,000 businesses across the country, from Daron’s bakery in Kent to Candy’s doggy day care in Suffolk, access the finance they need to grow and prosper. Log in to view current lending opportunities on the marketplace.

You are making a real difference to the UK economy

Independent research published by the Centre for Economics and Business Research (CEBR) revealed that since launching in 2010, Funding Circle investors, like you, have helped create over 40,000 jobs, build approximately 2,200 family homes, like Forth Homes in Merseyside, and boost economic activity (measured by GVA) by £2.7 billion. You can download the full report here or read about the impact your lending is having on the UK economy below:

small_business__big_impact_infographic

Interested in lending to British businesses?

Lend alongside 50,000 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.

The Funding Circle team

5 back to school businesses | Weekly Lending Review

Week 37: 12 – 16 September

Whether you’re getting stuck back into schoolwork, starting a new job or just need a boost to carry you into Autumn, our back to school list including new stationery, books and a cookery school, is here to help.

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 £15,889,020 averaging at £69,708 per loan. The largest loan value was £523,820 and the smallest loan value was £5,000.

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 37 Yield

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

Number of listed loans per week

WLR 37 loans listed

Listed loan value per week

 WLR 37 loan value

Total amount lent

 WLR 37 amount lent

Loan parts available to buy from other investors

WLR 37 loan parts

Are you taking advantage of our refer a friend promotion?

If you recommend a friend to Funding Circle, and they lend £1,000 to businesses by the end of October, you could lend to British businesses on us as you’ll both earn £50 cashback paid into your accounts. Terms and conditions apply.

Loans defaulted last week

Plastics specialist. Loan 1460. Risk band B

This Cornwall business has been running since 1997 and is 4 months in arrears.

Care home. Loan 8210. Risk band C

This Kent business was established in 2005 and has become unresponsive after missing repayments.

Hairdresser. Loan 6680. Risk band C

This London business has been running since 2010 and is 4 months in arrears.

Online retailer. Loan 17754. Risk band B

This Middlesex business was established in 2010 and has been placed into liquidation.

Building restorer. Loan 14412. Risk band C

This Northamptonshire business has been running since 2002 and was placed into liquidation in January 2016.

Construction company. Loan 11199. Risk band C

This Leicestershire business was established in 2011 and is being placed into liquidation.

Scaffolding specialist. Loan 19899. Risk band A+

This Staffordshire business has been running since 2003 and was placed into liquidation in August 2016.

Sales company. Loan 18912. Risk band A

This Glasgow business was established in 2010 and is being placed into liquidation.

Car showroom. Loan 9110. Risk band A

This West Yorkshire business has been running since 2009 and is being placed into liquidation.

Software specialists. Loan 15115. Risk band A

This Gloucestershire business was established in 2011 and the borrower has decided not to take the funds.

Accountant. Loan 17089. Risk band A

This North Yorkshire business has been running since 2005 and has proposed a Company Voluntary Arrangement.

Manufacturer. Loan 15068. Risk band A

This Hampshire business was established in 2000 and was placed into administration in September 2016.

Engineer. Loan 10945. Risk band A

This West Midlands business has been running since 1977 and has been placed into administration.

Sweet manufacturer. Loan 6980. Risk band C

This Kent business was established in 2011 and is being placed into liquidation.

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

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

 

Ready, set, bake! | Weekly Lending Review

Week 36: 5 – 9 September

Last month, we visited award-winning cafe and bakery, Finch House, in Kent. Take a tour of the new shop, which 1,800 Funding Circle investors helped fit out, and meet business owner Daron in this short video.

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 £13,672,680 averaging at £60,705 per loan. The largest loan value was £381,480 and the smallest loan value was £5,000.

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 36 yield

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

Number of listed loans per week

WLR loans listed

Listed loan value per week

WLR 36 loan value

Total amount lent

WLR 36 amount lent

Loan parts available to buy from other investors

WLR 36 loan parts

News you should know

Last week, we announced the appointment of Eric Daniels, former Chief Executive of Lloyds TSB with over 40 years’ experience in global banking and financial services, to the Funding Circle Board.

Are you taking advantage of our refer a friend promotion?

If you recommend a friend to Funding Circle, and they lend £1,000 to businesses by the end of October, you could lend to British businesses on us as you’ll both earn £50 cashback paid into your accounts. Terms and conditions apply.

Loans defaulted last week

Multimedia agency. Loan 19331. Risk band C

This East Sussex business was established in 2013 and is 3 months in arrears.

Design consultancy. Loan 4886. Risk band C

This Surrey business has been running since 2008 and is proposing a Company Voluntary Arrangement.

Health and safety specialist. Loan 8169. Risk band B

This Aberdeenshire business was established in 2001 and was dissolved in August 2016.

Jewellery business. Loan 5875. Risk band A+

This Leicestershire business has been running since 1966 and is being placed into liquidation.

Creative agency. Loan 10698. Risk band C

This London business was established in 2006 and has proposed a Company Voluntary Arrangement.

Shop. Loan 8249. Risk band A

This Perthshire business has been running since 2004 and has become unresponsive after missing repayments.

Mechanics. Loan 10664. Risk band A

This Devon business was established in 2005 and has been placed into liquidation.

Letting agency. Loan 9107. Risk band D

This London business has been running since 2011 and has become unresponsive after missing repayments.

Double glazing specialist. Loan 17779. Risk band D

This Glasgow business was established in 2003 and is being placed into liquidation.

Creative agency. Loan 11763. Risk band A  

This Dorset business has been running since 2010 and is being placed into a Company Voluntary Liquidation.

Manufacturer. Loan 2681. Risk band B

This Midlothian business was established in 2009 and is 4 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. Remember, by lending to businesses your capital is at risk.

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

Digging into the data: What could happen to your returns in an economic downturn?

At Funding Circle our aim is to build a stable and sustainable platform, where you can earn predictable returns by lending to creditworthy businesses. Following the recent referendum result for the UK to leave the European Union, you may have questions about the impact any future economic uncertainty might have on your returns.

We have always made preparations to be well-equipped to weather periods of economic uncertainty, and wanted to share the results of a recent stress test we conducted.

What do we mean by ‘stress test’?

Stress tests are an integral part of any financial organisation’s risk management strategy as they provide estimates around what might happen in an economic downturn. We first conducted a stress test in 2014 to simulate what could happen to investor returns during a particularly stressed period, or recession. A recession is characterised by a sustained period ‒ typically two consecutive quarters ‒ of negative GDP growth.

What did we do?

At Funding Circle we have an experienced team of credit and risk analysts, who have many years of experience working at some of the world’s leading banks and financial institutions. Leveraging historical data available to us from leading credit reference agencies and our own database of over 15,000 UK businesses, we were able to apply a number of stressed scenarios to an example of a typical investor portfolio, to analyse the potential impact on investor returns.

Methodology

The starting point for our stress test was to create an example portfolio, and to review how we expected those loans to perform if the UK economy remained stable. To broadly reflect the proportion of loans that have been originated over the last 12 months, we tested an example portfolio made up of:

  • 70% unsecured small business loans
  • 30% secured property loans

We estimated that these loans would deliver a 7.2%* annual return after fees and losses during a stable economic environment. By conducting rigorous stress testing, we were able to simulate what would happen to these returns should the UK economy enter a period of recession.

What data did we use?

As part of our stress test, we analysed a number of factors including macroeconomic indicators and specific indicators relevant to both small business loans and property loans.

Small business loans

1) Insolvency rate

When building the model we used data from the Insolvency Service, which shows the rate at which businesses are unable to pay their debts. This is known as the insolvency rate. Looking at the graph below showing the insolvency rate of UK businesses during the 2007-08 recession, you can see that the insolvency rate was two times (2.0x) higher at the peak of the recession in 2009 than it was in 2016.

Insolvency

Source: The Insolvency Service

We used this insight to guide our understanding for what the default rate for small businesses could increase by at Funding Circle during a recession. We also investigated specific segments of small businesses that share the characteristics of Funding Circle borrowers (such as turnover, trading length and number of employees) and found that for those businesses the increase in insolvency rate was actually 1.6x during the same period – suggesting less volatility than the average market. By examining the average age of Funding Circle borrowers, we could also confirm that the majority (56%) successfully traded through the last recession.

2)Timing and duration of a recession

Two other important factors we considered when estimating the impact of a stressed scenario on small business loans were the timing and duration of a recession.

Typically, defaults on a group of loans start to occur approximately six months after loans are made. This trend then naturally decreases over time from the second year. In addition, all of the small business loans amortise as borrowers pay back a proportion of their principal along with interest each month. Both factors are likely to reduce the severity of a recession that would start later, on existing loans.

Amortisation

The age of a group of loans at the time a recession occurs influences the magnitude of the financial impact. Therefore we have stress-tested both the existing book of loans, which are less exposed due to being partially matured, and an example portfolio of brand new loans, which are potentially fully exposed to recessions through their entire lifetime.

Property loans

Property loans are secured against properties. The major factor we considered when assessing the impact of any stressed scenario on property loans is a fall in the value of house prices. The graph below shows that during the 2007-8 recession, house prices across the UK fell by an average of 19% over 18 months.

HPI

To understand risks on this portfolio, house price fluctuations have to be compared with the loan-to-value (LTV) ratio, or the value of each secured property against the amount borrowed. The below chart shows the distribution of loans by loan-to-value bands for outstanding Funding Circle property loans. Data is correct as of 31st August 2016.

LTVWe looked at what would happen to the property portfolio if house prices fell by either 10%, 20% or 30%. Outside of our base estimated default rate of 0.5% a year for property loans, in the mildest scenario (10% fall in house prices) investors would be unlikely to experience an increase in defaults as the loan-to-value on any of the property loans does not exceed 85%.  Even in an extreme scenario where house prices fell by 30%, we estimated that the majority of the outstanding property loans would be well-placed to weather a recession.

Our stress test scenarios and results

For the first scenario, we simulated a recession similar to the one experienced in 2008. The second scenario was based on data from the Prudential Regulation Authority (PRA), where we applied a number of macroeconomic changes provided by the PRA to simulate a recession significantly more severe than experienced in 2008. For both scenarios we also anticipated that the recovery rate on defaulted loans would decrease by 33% during the stressed period.

Taking the estimated annualised net return of 7.2%* in our base case as a starting point, the results were as follows:

results

The existing example portfolio is likely to be resilient in both scenarios. New loans are also likely to be resilient, although with lower returns due to the timing impact. Also, in the case of a major recession, Funding Circle would take action to mitigate losses ‒ with such benefits not factored into this simulation.

We have a number of processes in place to help anticipate and react to worsening economic conditions. We monitor, with a lot of scrutiny, both the internal performance of our loanbook and external macroeconomic conditions. Looking at factors including changes to Gross Domestic Product (GDP), income gearing (how much income there is available for a business to service debt), Consumer Price Inflation (CPI) and the overall insolvency rate for UK businesses, we should be able to identify when a downturn may be approaching.

If there were indications that economic conditions were worsening, or that our loanbook was not performing as well as it should be, we would adjust our credit assessment process to price in some of the effects of an incoming downturn on new loans. You can read more on how we assess businesses on our blog.

Remember

 

Conclusion

These results show that investor returns are likely to remain attractive even in a recession deeper and longer-lasting than was experienced in 2007-08. We’re committed to helping investors earn attractive returns by building a stable and sustainable platform, and are confident this would remain the case even during the most adverse of downturns. Diversifying, where you spread your lending across lots of different businesses, can help your portfolio be more representative of the wider pool of loans we have tested. You can find out more about this here.

We hope you’ve found the above information useful, and you can read more about the performance of Funding Circle loans on our statistics page. If you have any questions please don’t hesitate to get in touch.

Enjoy lending,

The Funding Circle team

* Estimated returns are after fees and bad debts but before tax, and please remember by lending your capital is at risk. As you lend to your own individual portfolio of loans, your actual return may be higher or lower than our estimates. You can see how we calculate our estimated annual return at origination here.

We’re back on TV! | Weekly Lending Review

Week 35: 29 August – 2 September

Last week, we launched our new 30 second TV advert. Watch it now online or keep your eyes peeled for it over the next few weeks!

New loans available to you

There are currently 7 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 £9,094,520 averaging at £63,136 per loan. The largest loan value was £392,980 and the smallest loan value was £5,000.

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 35 yield

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

Number of listed loans per week

WLR 35 loans listed

Listed loan value per week

WLR 35 loan value

Total amount lent

WLR 35 Amount lent

Loan parts available to buy from other investors

WLR 35 loan parts

Loans defaulted last week

Air conditioning specialists. Loan 14298. Risk band A

This Essex business has been running since 2001 and is being placed into liquidation.  

Caterers. Loan 6271. Risk band C

This Hampshire business was established in 2004 and was placed into liquidation in June 2016.

GP surgery. Loan 4932. Risk band C

This West Sussex business has been running since 2012 and is proposing a Partnership Voluntary Arrangement.

Garage. Loan 8876. Risk band A

This Shropshire business was established in 1913 and is 4 months in arrears.

Equipment supplier. Loan 16109. Risk band A+

This Aberdeenshire business has been running since 2010 and was placed into administration in August 2016.

Print cartridge wholesaler. Loan 11122. Risk band B

This London business was established in 1994 and has ceased trading.

IT disposal specialist. Loan 9031. Risk band C

This Flintshire business has been running since 2010 and has become unresponsive after missing repayments.

Gym. Loan 13263. Risk band B

This Nottinghamshire business was established in 2012 and is being placed into liquidation.

Painters and decorators. Loan 16292. Risk band A

This Surrey business has been running since 2005 and is being placed into liquidation.

Interior designers. Loan 10477. Risk band D

This Dorset business was established in 2002 and is being placed into liquidation.

Decorators. Loan 10325. Risk band D

This London business has been running since 2006 and has ceased trading.

Steel manufacturer. Loan 16065. Risk band C

This Manchester business was established in 1992 and is being placed into liquidation.

Outdoor space designers. Loan 2369. Risk band B

This Shropshire business has been running since 2002 and is being placed into liquidation.

Printers. Loan 17096. Risk band B

This Yorkshire business was established in 2010 and is being placed into liquidation.

Restaurant. Loan 3615. Risk band D

This Leeds business has been running since 2005 and is being placed into liquidation.

Hotel. Loan 2815. Risk band C

This Powys business was established in 2006 and is 4 months in arrears.

Marketing agency. Loan 11891. Risk band D

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

Corporate events specialist. Loan 5860. Risk band B

This Aberdeenshire business was established in 2006 and is proposing a Company Voluntary Arrangement.

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

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

Lend to 100s of businesses through Funding Circle | Weekly Lending Review

Week 34: 22 – 26 August

Last week, your lending helped 208 UK businesses access more than £14 million to grow and prosper. Of the new loans listed, the South East was the most popular business location, and property & construction was the most popular sector.

New loans available to you

There are currently 4 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 £15,111,120 averaging at £70,206 per loan. The largest loan value was £460,480 and the smallest loan value was £5,000.

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 34 yield

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

Number of listed loans per week

WLR 42 loans listed

Listed loan value per week

WLR 34 loan value

Total amount lent

WLR 34 amount lent

Loan parts available to buy from other investors

WLR 34 loan parts

Loans defaulted last week

Consultants. Loan 12168. Risk band A+

This West Midlands business has been running since 2010 and has become unresponsive after missing repayments.

Engineers. Loan 7526. Risk band A+

This Cheshire business was established in 2011 and is 3 months in arrears.

Printed fabric converter. Loan 4159. Risk band D

This London business has been running since 2004 and was placed into liquidation in December 2015.

Builders. Loan 17762. Risk band A

This West Sussex business was established in 2013 and is being placed into liquidation.

Strategic support. Loan 13022. Risk band A

This Oxfordshire business has been running since 2006 and is being placed into liquidation.  

Travel agent. Loan 8575. Risk band A+

This London business was established in 2012 and is being placed into liquidation.  

Garage. Loan 3958. Risk band D

This Monmouthshire business has been running since 2014 and was made bankrupt in August 2016.

Recruiters. Loan 10280. Risk band B

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

Sustainable development specialist. Loan 11046. Risk band A

This London business has been running since 2010 and was placed into liquidation in August 2016.

Online retailer. Loan 7971. Risk band B

This Middlesex business was established in 2010 and is being placed into liquidation.

Electrician. Loan 18421. Risk band B

This North Yorkshire business has been running since 2012 and is being placed into liquidation.

Motor business. Loan 17614. Risk band E

This Essex business was established in 2001 and was placed into administration in July 2016.

Steel manufacturer. Loan 6764. Risk band B

This Lancashire business has been running since 1984 and has become unresponsive after missing repayments.

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

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 fantastic few weeks! | Weekly Lending Review

Week 33: 15 – 19 August

What a fantastic few weeks in Rio! As the Team GB Olympians touch down after a record breaking two weeks, we’ve been inspired to keep active this summer with these 5 tip-top Funding Circle businesses.

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 £15,783,260 averaging at £75,343 per loan. The largest loan value was £477,240 and the smallest loan value was £5,000.

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 33 yield

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

Number of listed loans per week

WLR 33 loans listed

Listed loan value per week

WLR 33 loan value
Total amount lent
WLR 33 amount lent

Loan parts available to buy from other investors

WLR 33 loan parts

Loans defaulted last week

Computer games software. Loan 21256. Risk band A

This East Sussex has been running since 2003 and has become unresponsive after missing repayments.

Engineers. Loan 14966. Risk band D

This Northamptonshire business was established in 2011 and was placed into administration in August 2016.

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

6 years of small businesses making a big impact | Weekly Lending Review

Week 32: 8 – 12 August

Last week, we celebrated our 6th birthday, the inspirational stories of small business owners and their impact on the UK economy. Watch this short video to find out more.

New loans available to you

There are currently 8 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 £10,035,580 averaging at £61,192 per loan. The largest loan value was £413,620 and the smallest loan value was £5,000.

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 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 loan value

Total amount lent

 WLR 32 amount lent

Loan parts available to buy from other investors

WLR 23 loan parts

News you should know

We recently commissioned a report to help us better understand the impact lending and borrowing through Funding Circle has on the UK economy. Since 2010, Funding Circle investors and businesses have helped:

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

Read more about the key findings, from why businesses choose Funding Circle to unleashing the potential of small housebuilders.

Loans defaulted last week

Social care management. Loan 15995. Risk band A+

This Hertfordshire business has been running since 2011 and has ceased trading.

Heating contractor. Loan 16939. Risk band D

This Greater Manchester business was established in 2011 and was placed into liquidation in March 2016.

Software developers. Loan 6852. Risk band D

This South Yorkshire business has been running since 2008 and is 3 months in arrears.

Noodle restaurant. Loan 2820. Risk band C

This West Midlands business was established in 2008 and is 3 months in arrears.

Engineers. Loan 5944. Risk band A

This Staffordshire business has been running since 2004 and is 3 months in arrears.

Laminate specialists. Loan 18751. Risk band A

This East Sussex business was established in 1995 and is being placed into insolvent liquidation.

Online sofa bed shop. Loan 14439. Risk band B

This West Sussex business has been running since 2004 and is being placed into insolvent liquidation.

Roofers. Loan 11440. Risk band A+

This Hertfordshire business was established in 2008 and has been placed into liquidation.

Restaurant. Loan 4975. Risk band C

This West Midlands business has been running since 2009 and is being placed into insolvent liquidation.

Plumber. Loan 10416. Risk band A+

This Buckinghamshire business was established in 2012 and is being placed into insolvent liquidation.

Training centre. Loan 21126. Risk band B

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

Clothes shop. Loan 11150. Risk band B  

This Lancashire business was established in 2010 and was placed into administration in February 2016.

Business support. Loan 8451. Risk band B

This Kent business has been running since 2011 and has ceased trading.

Home care provider. Loan 16049. Risk band B

This Hertfordshire business was established in 2007 and is being placed into liquidation.

Hotel. Loan 20608. Risk band A+

This West Midlands business has been running since 2008 and is being placed into insolvent liquidation.

Medical services. Loan 18176. Risk band A+

This Berkshire business was established in 2008 and was placed into administration in July 2016.

Architectural joiners. Loan 12894. Risk band A+

This Oxfordshire business has been running since 1972 and is being placed into insolvent liquidation.

IT services. Loan 14148. Risk band B

This Bedfordshire business was established in 2000 and was placed into liquidation in August 2016.

Bicycle shop. Loan 12694. Risk band C

This County Durham business has been declared bankrupt.

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

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