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.

£2.7 billion boost to the UK economy. August industry news

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How small firms are increasingly turning away from traditional lenders for funding

Last month, research published by the Centre for Economics and Business Research (CEBR) revealed that since Funding Circle launched six years ago, you and other investors have helped to create jobs, build homes and support regions that have faced economic hardship in the wake of the last financial crisis. To date, your committed support has helped to boost the UK economy by an estimated £2.7 billion, helping to create an estimated 40,000 new jobs across the country. Learn more about the positive impact you’re having on our blog.

Small housebuilders are the answer to the housing crisis. Here’s how we can help them

Just as small businesses are critical to the success of the British economy, so too are small housebuilders. Large housebuilders on their own are unable to keep up with the rising shortfall of dwellings across the country. In order to fill this gap, it’s crucial that small developers have adequate access to finance, yet they continue to struggle to access funding through traditional channels. Direct lending platforms are helping to alleviate this problem by matching these developers directly with investors. Research shows that to date, investors at Funding Circle have helped to build over 2,200 homes across the UK, proving the huge potential for platforms to facilitate lending to the residential construction sector.  Similar themes were also covered in Guardian.

Dinosaur banks have some fleet-footed rivals

The financial world has no doubt changed over the past decade; high street banks are unable to help the vast number of businesses in need of finance, opening the door to a proliferation of innovative technology start-ups. By cutting out the traditional middle man and linking supply directly with demand, direct lending platforms have allowed investors to earn positive returns, whilst creating thousands of new jobs across the country. This journalist has lent through the major platforms for a number of years and discusses his experience in detail. Remember, by lending to businesses your capital is at risk.

Cash, peer-to-peer, shares and bonds

Following the Bank of England’s recent decision to lower the base rate, this piece looks at some of the savings and investment options available to those who are looking to make their money work harder. As always, a diversified portfolio is the recommended approach in this Telegraph piece. To learn more about what diversification means for you at Funding Circle, take a look at our blog or read more about this topic in The Times.

14 cool apps to help you budget, save money, and invest

And finally, Business Insider has rounded up some of the best apps and services available right now that can help you do everything from sending money around the world, to applying for a mortgage online. At Funding Circle, we are very pleased to announce this month that the new and refreshed iPad app is available to download for free from the App Store! The app allows you to keep track of your account more easily and find information quickly with our simplified navigation tool. More details on in this post.

News

Your lending has boosted the UK economy by £2.7 billion

Since Funding Circle launched six years ago, investors including individuals, the government-backed British Business Bank, and a range of financial institutions have helped more than 15,000 UK small businesses access finance. Your lending has helped to create jobs, build homes and support regions that have faced economic hardship in the wake of the last financial crisis.

This was the conclusion of independent research published today by the Centre for Economics and Business Research (CEBR). The report reveals that your lending has supported the creation of 40,000 new jobs, whilst boosting the UK economy by an estimated £2.7 billion since 2010.

You can download the full report here, view our infographic, and read more about the key findings below.

Small business, big impact

Since 2010, your lending has supported the creation of approximately 40,000 jobs across the country. Not only do the businesses you lend to benefit, but companies along those businesses’ supply chains do too. The jobs you help to create also increase spending power in that area, making a further contribution to the economy. CEBR estimates that the total economic activity generated by investors lending through Funding Circle has added £2.7 billion to the UK economy1 over the past six years.

Over three fifths (61%) of borrowers surveyed as part of the report saw their revenue increase as a result of taking a loan with Funding Circle, while nearly half (47%) reported a rise in profits.

Why do borrowers choose Funding Circle?

The report finds that loans facilitated by direct lending platforms like Funding Circle now make up 6% of all new small business loans granted by platforms and the main high street banks.2

Creditworthy businesses are attracted to Funding Circle by the speed and simplicity of the application process. Nearly three quarters (72%) of borrowers found the experience of obtaining a loan with Funding Circle faster than other providers they considered. This helps to explain why 77% initially shopped around for finance, but 94% would come back to Funding Circle first in future.

eirgraph1

 

Your lending is also helping a fifth more creditworthy businesses to access finance than before, where they have previously been underserved by traditional sources of finance. 21% of businesses surveyed believe they wouldn’t have been able to access finance without Funding Circle. CEBR considers this to be due to restrictions in the wider lending environment, with many banks having exposure limits on the amount they can lend to a particular region or sector for example. These businesses are creditworthy – Funding Circle has a robust assessment process which uses a balanced set of risk tools to create a full picture of the borrower’s financial health. You can read more about how we assess loans here.

Supporting businesses in the North

Funding Circle loans are also popular among businesses in parts of the UK that have faced greater economic challenges, such as the North. The North East has the country’s second lowest Gross Value Added, which is a an indicator of economic performance and measures the value of goods and services produced in an area.

Partially due to this economic underperformance, businesses in the North East make up just 3% of all businesses in the country. However, 10% of your lending goes to businesses in the North East helping to balance economic growth across the country.

Unleashing the potential of small housebuilders

CEBR estimates that the UK currently faces a cumulative shortfall of 264,000 homes, with large developers unable to bridge this gap on their own.

eirgraph2

Small developers, like those you lend to through Funding Circle, have continued to struggle to access finance through traditional channels since 2008. Since extending the loans we offer to include property finance, we have been able to better-serve these small developers. CEBR estimates that since 2014, your lending has helped to build approximately 2,200 homes across the country, providing a potential solution to the UK housing crisis.

Conclusion

The research published today by the CEBR highlights the role Funding Circle investors have played in supporting economic growth in the UK. Small business isn’t small – it accounts for half of the UK’s GDP3 and 60% of private sector employment4. Their success, and your lending, is vital to our economy.

We hope you found this piece useful, and if you have any questions please join the conversation over on our forum or get in touch.

Enjoy lending,

The Funding Circle team

1 The CEBR estimates that the direct, indirect and induced GVA impact of Funding Circle loans is £2.7 billion. GVA, or gross value added, measures the economic contribution made by a particular economic unit such as a region, business or industry. It is used as one of the factors when calculating gross domestic product (GDP) and is a measure of the relative economic importance of a business.

2 Direct loans accounted for 6% of all new loans granted by the main high street banks and direct lending platforms to small and medium sized businesses in the last quarter of 2015 – up from 3% for the same period in 2014 – according to data from the British Bankers Association and the Peer-to-Peer Finance Association.

3 Source: http://researchbriefings.files.parliament.uk/documents/SN06078/SN06078.pdf

4 Source: http://www.fsb.org.uk/media-centre/small-business-statistics

 

Small business, Big impact: an infographic

Independent research published today by the Centre for Economics and Business Research (CEBR) revealed that since Funding Circle launched six years ago, investors including individuals, the government-backed British Business Bank, and a range of financial institutions have helped to create jobs, build homes and support regions that have faced economic hardship in the wake of the last financial crisis.

You can download the full report here and read more about the key findings below.

small_business__big_impact_infographic

Do you want to grow your business? More than 15,000 businesses in the UK have accessed finance through Funding Circle for a range of requirements. You can apply online in less than 10 minutes and check your eligibility in just 30 seconds.

Are you interested in lending to businesses through Funding Circle? Create an account online and start lending the same day. Remember, by lending to businesses your capital is at risk.

The Funding Circle team

The power of the people. July industry news

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Funding Circle Hires Former Chief of Nomura Holdings Inc

Last month we announced we will soon be welcoming Jeremy Bennett to the Funding Circle team as Global Chief Financial Officer. Former CEO of Nomura Holdings European division, Jeremy brings over three decades of experience within financial services. During the financial crisis, he was responsible for designing the £800 billion Asset Protection Scheme that provided insurance to all UK banks in 2008. Samir Desai says, “Jeremy has significant experience in building large scale financial services businesses and will play an integral role as we continue our evolution.” Press release on our blog.

Peer-to-peer lending: Everything you need to know about the leading websites

10 years ago, peer-to-peer, or marketplace lending was launched in the UK, bringing the power of people to the financial sector, which in turn has helped many small businesses and the UK economy to grow. Since then, it’s really taken off, opening up new opportunities for investors and borrowers. From reasons to use marketplace lending, to the rates and risks involved, the Telegraph looks at the top platforms in the space and highlights what each of them can offer investors.

Before you make a date, do some background checks

As part of the regulator’s ongoing work to ensure investors are properly protected when lending to small businesses through platforms like Funding Circle, the Financial Conduct Authority (FCA) is currently reviewing the existing regulations. The review was promised in 2014 to ensure the regulations kept up with innovation and developments in our dynamic sector and we will be submitting our response in September. For more information, have a look at our blog and a statement from the FCA.

Where to put £1,000 in a world of negative interest rates

Not only is it important for the FCA to understand the sector, but it’s essential for investors to familiarise themselves with the different forms of investment options available. Whether that’s investing in shares and funds or putting your money into property loans, there are many potential ways to earn attractive returns through peer-to-peer lending. But remember, these are investments, which means your capital is at risk.

Peer-to-peer property lenders promise to transform your fortunes – but is it worth putting your capital at risk?

According to figures from the P2PFA, the size of the peer-to-peer property sector has nearly doubled over the past year, making a huge difference to the number of new homes being built in the UK. Large house builders alone have been unable to keep up with rising demand, meaning that smaller builders play a crucial role in meeting this supply gap. At Funding Circle, investors are helping to alleviate the housing crisis by supporting these small developers, who have now built hundreds of homes across the country.

How marketplace lending is seducing the financial adviser

And finally, City AM discusses how marketplace lending is finally enticing the financial adviser community by offering them a powerful tool to help them diversify their client portfolios. Increasing track records at more established platforms are helping them to become more comfortable with this way of investing, allowing them to help more of their clients to earn attractive returns. Remember, by lending to businesses your capital is at risk.

News

No change following Bank of England rate decrease

As you may have seen, yesterday the Bank of England decided to cut the official base rate from 0.5% to 0.25%, a record low and the first change in seven years. A number of measures have also been introduced aimed at stimulating the UK economy, including an extension to the existing quantitative easing (QE) programme.

B.O.E

Source: BBC, Bank of England

We wanted to let you know that there will be no immediate change to the fixed interest rates on the Funding Circle marketplace. We review our rates on a regular basis, where we take into account a number of factors, including macroeconomic conditions. If there are any changes to rates, we will communicate these to you.

Over nearly six years, Funding Circle investors have earned strong, stable returns. You can read more about how returns have performed over time in our recent Digging into the Data blog post here. Remember, by lending to businesses your capital is at risk.

Enjoy lending,

The Funding Circle team.

Improvements to the way loans are listed

At Funding Circle, our aim is for investors to earn attractive returns by lending to established businesses in a quick and simple way. As part of this commitment, we have introduced a new way for businesses to accept their loan contract before their loan is listed on the marketplace.

This has two main benefits for investors:

1) Your funds earn interest as soon as the loan is 100% funded: Previously, once a loan received 100% of its required funding, the borrower would have up to five working days to accept or reject the loan. However this meant your funds were tied up during this period and not earning interest.

2) More businesses accepting loans: Previously approximately 15% of businesses would reject their loans once fully funded. By accepting their loan contract before they are listed on the marketplace, this means that when you place a bid you can have confidence that once the loan is funded it will close automatically, and your funds will not be held in loans that can be rejected by the business owner.  

As a loan reaches 100% of its required funding, it will now automatically complete and you will no longer see it listed on the loan request page. On occasions it may appear that there are fewer loan requests for you to bid on, particularly on a Monday morning or after a bank holiday weekend. However plenty of lending opportunities will be made available for you every week. You can find recent marketplace data in our weekly lending review, found on our blog.

This new improvement follows on from the introduction of fixed rate loans in October last year and we are pleased to make it available to investors after many months of work. We hope you have found this post useful, and if you any questions then please get in touch or join the conversation on the forum.

Enjoy lending,

The Funding Circle team

£100 million investment to UK businesses through Funding Circle. June industry news

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Marketplace lending platforms rush to fill funding gap

The Times considers how platforms like Funding Circle could help support small businesses following the EU referendum last month. We also want to reassure you about your ongoing relationship with us at Funding Circle, so if you missed it, take a look at our recent blog post.

Funding Circle agrees £100m deal with Europeans for small business

Ahead of the referendum, the European Investment Bank (EIB) committed to lending £100 million to businesses across the UK through Funding Circle. This new and exciting partnership is the first deployment of EIB funds through a direct lending, or peer-to-peer lending, platform and creates an important new channel to stimulate the real economy. The EIB have confirmed that the investment is unaffected by the referendum result. Further coverage in Financial Times, City AM and Business Insider, highlights how Funding Circle investors, big and small, have helped over 15,000 businesses, like Laird Hatters, to access finance.

Why the mortgage market is due to be shaken up by the tech revolution

Fintech isn’t only changing the way businesses borrow and investors lend, but it’s also shaking up the way individuals and families apply for mortgages. The mortgage industry has been lacking innovation for decades, however a new breed of digital companies are appearing, using algorithms and automation to streamline and speed up the process. From home-buying to investing, technology is transforming the way we go about our everyday lives.

Britain leads Europe in tech

There’s been a tremendous increase in the number of disruptive technology companies across Europe, and Britain is home to over a third of them! The remarkable resilience and talent within the sector is proven as the number of businesses nearing the $1 billion valuation milestone reaches an all time high this year. According to Business Insider, these are the businesses that have the ambition and rapid growth to join the expanding list of thriving fintech companies this year! Read more on the topic in City AM.

The unloved child of the ISA family

As you may know, the majority of direct lending, or peer-to-peer lending platforms, are still waiting to become fully authorised by the Financial Conduct Authority (FCA) in order to launch their Innovative Finance ISA. Although significant progress has been made, it’s important that the FCA completes this process in a thorough manner. In the meantime, we are pleased there are other ways investors can earn tax-free returns through Funding Circle. Take a look at our recent blog which discusses some great options.

UK SME Income Fund

And finally, if you are based in the UK, you can earn tax-free returns by holding shares in the Funding Circle SME Income Fund* through either a Stocks & Shares ISA or Self-Invested Personal Pension. According to recent figures, investors lending through the SME Income Fund have helped over 1,200 businesses across the UK, US and Europe to access finance.  Remember, by lending to businesses your capital is at risk.

*This blog post is provided for information purposes only and is not intended to be construed as an offer, invitation or inducement to engage in investment activity in relation to – or a financial promotion of – Funding Circle SME Income Fund. Funding Circle does not give investment advice or recommendations and this blog post should not be relied upon as such*

Digging into the Data: The evolution of the assessment process

With the United Kingdom voting to leave the European Union, we wanted to assure you that despite the current political and economic uncertainty, Funding Circle has a robust credit assessment process to seek to ensure the businesses you lend to are resilient.

In this edition of Digging into the Data we will be looking at how our credit assessment process works in more detail, its development and improvement over time, and announcing the latest changes we are making. We will also discuss how we have stress tested our loanbook to seek to ensure Funding Circle portfolios are able to weather periods of volatility.

How does our assessment process work?

When assessing a business, we use a balanced mix of risk tools to ensure we create a full picture of the borrower’s financial health. These are centred around three key pillars; statistical credit models, expert judgment and policy criteria.

Statistical credit models

We have developed proprietary statistical credit models that rank potential borrowers by order of risk, taking into account thousands of individual criteria both from publicly available data sources (like credit reference agencies) and our own database of historical data (including more than five years of information on UK companies). These statistical credit models are used to assign a risk band to the loan, from A+ to E, and identify businesses we are unable to help.

As Funding Circle has grown over the last five years and more loans have matured, this has provided us with more credit performance data, allowing us to make even more accurate statistical credit models. Since we launched in 2010, more than 14,000 businesses have been funded on the platform. We regularly update our statistical credit models to ensure we leverage this valuable experience. As you can see from the below graph*, our 2016 models benefit from being built on a population size significantly larger than what was previously available to us:

1st graph

More data allows us to determine with more precision which factors influence whether a business is more or less likely to default on a loan. This means we get better at ensuring the right businesses are approved, creating more lending opportunities for investors while increasing confidence in the predicted loan performance. This accumulation of experience over time creates a virtuous circle:

2nd graph

Expert judgement

Alongside our statistical credit models, each business is manually assessed by a member of our credit assessment team.

Our team is made up of specialist small business credit assessors, with extensive experience working at some of the UK’s most well known banks. The team reference multiple sources of data; including financials provided by the borrower and leading credit reference agencies, plus the company directors’ own personal finances.

This creates a comprehensive picture of the business’ financial position – allowing the in-house credit assessment team to raise and clarify any potential questions with the borrower before making any lending decision. If the risk of default is deemed higher than our risk bands allow for, the business will be rejected.

By combining expert judgment with statistical credit models, we can make balanced credit decisions resulting in robust credit performance. More information on the expected and actual default rates for our risk bands can be seen on the statistics page.

Policy criteria

Funding Circle receives thousands of applications from small businesses, and having a simple set of policy criteria has enabled us to filter out businesses that have a low likelihood of being approved.

Policy criteria are designed to give direction to business owners so they know whether they may be eligible for finance. This means our credit assessment team only spend time on the right type of applications. As we have accumulated more data on UK businesses over the past five years, we have found that a certain number of creditworthy businesses might have been overlooked, despite being successful and healthy businesses.

To ensure we can help more creditworthy businesses, we regularly review these policy criteria and make any necessary adjustments, retaining the criteria that have proven to identify borrowers outside of our risk appetite. Our latest set of policy criteria are:

  • A minimum of two years trading history
  • At least 1 year of filed or formally prepared accounts
  • No outstanding County Court Judgments larger than £250

With the 2016 generation of statistical credit models and the latest version of policy criteria, we expect estimated average returns to remain consistent: for loans that were originated in 2016 the estimated average return is 7.2%**, with an expected annualised loss rate of c.2%. We also expect performance by risk band to remain the same, although as always, it is important to highlight that your capital is at risk when lending to small and medium businesses.

Consistent results over time

As a result of our improving statistical credit models, our ability to determine which loans are more likely to default has increased. When Funding Circle started, loans accepted on the platform had a similar default rate to those rejected at the final stage of the assessment process. As we have incorporated a wider variety of tools and data sources this ratio has improved, so that by 2015 loans rejected at the final assessment stage were five times as likely to default as those accepted on to the platform.

The below graph shows our bad debt performance against expectations for loans originated each year since Funding Circle started. The data shows the loss rate for loans after 12 months, net of total recoveries received for those loans, for each cohort as a percentage of our expected loss rate. Please note our 2015 cohort is not included as it has not yet seen a full 12 months of performance:

3rd graph

As losses are shown net of total recoveries, previous cohorts have received an additional 12 months of recoveries than subsequent cohorts. Over the last four years, loss rates on the platform have been consistently within or below expectations, despite making changes to our assessment process and introducing higher risk bands.

For up to date information on marketplace performance, including bad debt performance over time by year of origination, please visit our statistics page.

Are we prepared for a downturn?

Following the referendum result for the United Kingdom to leave the European Union, you may have questions about the potential impact an economic downturn may have on your portfolio. Although we are unable to predict exactly what will happen in the future, we have always made preparations to ensure that we are well equipped to weather periods of economic uncertainty.

In 2014 we invited an industry leading external consultancy, Hymans Robertson, to undertake a full assessment of our loanbook. Simulating economic conditions experienced in both the 1992 and 2008 recessions, we were able to see how returns could vary if we saw another downturn in the economy. The full results can be seen on our blog, and we are currently undergoing a new stress test with the results to be published in due course.

At this stage, we don’t expect any potential fallout from the referendum result to create a credit situation worse than previous recessions, and since the performance of our loanbook has remained stable over the past two years, we think that the 2014 stress test exercise still provides a relevant view of what an economic downturn could mean for returns.

In parallel, we have also deployed contingency plans regarding our portfolio tracking and collections activities, scrutinising any sign of stress and ensuring we are ready to take action quickly if credit performance showed any sign of deterioration.

Conclusion

We are committed to enabling investors to earn consistent attractive returns, by lending directly to British businesses and helping to support economic growth. We will continue to make improvements and adjustments to our assessment process, including in response to changing conditions in the wider economy, so you can have confidence lending to businesses through Funding Circle.

We hope you found this piece useful, and if you have any questions please join the conversation over on our forum, or if you have further questions about how our credit assessment policies work, you can watch a recent interview with our Chief Risk Officer, Jerome Le Luel, here.

Enjoy lending,

The Funding Circle team

* The graph shows the number of loans originated on the platform that were at least 12 months old, as of July for each year.

** You can see how our estimated returns are calculated here.

Ways to earn tax-efficient returns | Weekly Lending Review Week 23: 31 May – 3 June

Last week, Investors helped 112 businesses across the UK access £8.35million through the Funding Circle marketplace (please note this is lower than normal due to last week’s bank holiday). 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 26 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 £8,463,740 averaging at £74,602.68 per loan. The largest loan value was £452,220 and the smallest loan value was £5,000.

Business loans available to bid on:

– Educational psychology provider for schools requires £30,000 to take on their first employee.
   Gross interest rate 9.2%

– Care home requires £88,900 to pay for training and extra staff.
   Gross interest rate 11.9%

– Logistics company requires £100,000 for working capital.
   Gross interest rate 8.3%

– Agricultural exporter requires £53,200 to purchase more stock.
   Gross interest rate 10.6%

Gross interest rates are before fees and estimated 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)

Rollingyield

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

Number of listed loans per week

Loanslistedpw

Listed loan value per week
Loanvaluelistedperweek.png

Total amount lent

Amount Listed

Loan parts available to buy from other investors

Loanparts

News you should know

As you may know, in order to launch an Innovative Finance ISA, all peer-to-peer lending platforms are required to be fully authorised by the Financial Conduct Authority (FCA). Although significant progress has been made, we do not yet have a date for when the Funding Circle ISA will be available.

There are a number of other ways you can earn tax-efficient returns in the meantime. You can read more about this on our blog.

Loans defaulted last week

Wholesaler. Loans 4616 and 9966. Risk band A

This Derbyshire business was established in 1997 and was placed into liquidation in April 2016.

Butchers. Loan 5150. Risk band C

This business located in North Wales was established in 2007 and has become unresponsive after missing payments.

Jewellery store. Loan 15850. Risk band A

This London business has been running since 2008 and has ceased trading, and is now in the process of entering liquidation proceedings.

Waste management company. Loan 185854. Risk band B

This Devon business has been trading since 1996 and entered administration in May 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

 

Collections charges for borrowers more than 90 days late

Today we are making some changes to our terms and conditions which cover charges for late paying businesses. Before placing your next bid, you’ll be asked to re-accept these terms. Further details are outlined below.

At Funding Circle, we have a robust credit assessment process in place to ensure that only creditworthy borrowers are listed on the marketplace. However, from time-to-time some businesses are unable to fully repay their loans, this is called bad debt.

When this happens our in-house Collections and Recoveries team work on investors’ behalf to help the borrower start repaying, or to recover funds by defaulting the loan and commencing recovery proceedings.

Bad debt is part of any form of lending, which is why we recommend investors diversify their lending across at least 100 businesses equally.  As of June 2016, the bad debt rate across the platform was 1.6%, while our estimated bad debt rate was 1.8%. You can see our current marketplace performance on the statistics page.

We believe that we  can deliver the best result for our investors when we carry out many of the tasks involved with the recoveries process directly, rather than outsourcing to a debt collection agency. Since we took our Collections and Recoveries team in-house in February 2014, the actual recovery rate on defaulted loans has risen from 14p/£ to 21p/£ in May 2016, and our estimated recovery rate has risen to more than 40p/£ over a five year period.

To cover the increasing costs incurred by the recoveries process, we are introducing a collections charge for some borrowers who are unable to clear their arrears.

How will the charges work?

Loans that are defaulted, or are more than 90 days late may be charged a collections charge, capped at 15% of the outstanding loan amount owed by the borrower. This will apply to loans originated on or after 6th June 2016. The collections charge is payable by the borrower, will not be deducted from what is owed to investors and will apply to all our loans, including property loans.

When a recovery payment is received from the guarantor or borrower, up to 20% of that payment will be allocated towards the collections charge. In situations where external legal costs may be involved, this figure may be higher, but will never exceed 40% of each recovery payment. As the charges are not deducted from what is owed to investors we estimate that the average repayment plan will take 10-15% longer to complete when the charge is applied.

The table below sets out the maximum amount charged to borrowers, based on the outstanding loan amount at the time of default.

collections charges

The recovery charge will be collected in addition to the amount owed to investors. Approximately 80% of all our recoveries are from guarantors who pay the debt in full (plus interest). For the remaining cases, we will stop collecting the collections charge if it becomes certain that a full recovery will not be made, for example if the guarantor terminates a payment plan and enters an IVA or bankruptcy.  In these cases there will not be a rebate of any collections charges that have been deducted. We will also not apply any collections charge if the loan is repaid in full within four months of the default date.

Why are we doing this?

We are committed to achieving market-leading results for investors and we believe that this charge will help us to do this by covering the costs incurred in the recoveries process, whilst also ensuring we are fair on our borrower community. By keeping our team in-house, we look to make as full a recovery as possible on every loan, therefore investors receive better results than if we were to outsource the recoveries process to a third party.

Updates to the Terms and Conditions

We have made some changes to our T&Cs (specifically clauses 8 and 12), clarifying when fees will be charged to borrowers. Our loan conditions have also been updated which means you’ll need to re-accept them before placing a bid, or, buying a loan part. Please view our updated terms and conditions, or contact a member of our team if you have any questions.

If you have any questions, please don’t hesitate to get in touch.

Enjoy lending,

The Funding Circle team.

We’re the Google generation of financial services. May industry news

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Revealed: the magic formula for a prosperous retirement

Retirement might not be on your mind just yet, but it’s never too early to start planning to ensure that you’re in the best financial position possible when the time comes. The goal of retirement planning is to create a method that works for you. There are many different ways to maximise your savings, depending on what you want to achieve and the risk you are willing and able to take. By properly diversifying your portfolio and spreading your money across hundreds of different loans, marketplace lending is an option that can allow you to earn steady and attractive returns.

UK peer-to-peer lenders talk up regulation after Lending Club ruckus

In the US, you may have seen that the CEO of Lending Club (a consumer lending platform) resigned due to an internal control issue at the business. The news was widely picked up by the media, dominating coverage of the industry over the last few weeks. Fortunately, the issue was discovered quickly due to the high levels of transparency within the sector. At Funding Circle we take internal controls and risk management extremely seriously and continue to invest heavily in these areas. If you have any concerns or questions, please get in touch and we would be happy to discuss further.

Christine Farnish: the ex-regulator defending the peer-to-peer industry

We’re the Google generation of financial services,” says Christine Farish, ex-regulator and former pensions boss. As current independent chair of the P2PFA, the trade body for UK peer-to-peer lending, Christine discusses regulation and the upcoming Innovative Finance ISA. Founded in 2011 by Funding Circle, Zopa and Ratesetter, the P2PFA promotes high standards of conduct and consumer protection, and publicises the benefits of marketplace lending across the country.  

Three ways to get a better return on your savings while interest rates are low

Many investors are still struggling with low interest rates and according to the Mirror, that isn’t likely to improve anytime soon. Using a marketplace lending platform however, may be the solution you’re looking for when thinking about earning attractive returns. You can start by lending as little as £20 and earn an estimated return of 7%*. Since all platforms are different, it’s essential that you understand how each one works and the potential risks involved before lending your money. Remember, your actual return may be higher or lower as by lending to businesses your capital is at risk.

Does securitisation of online loans have a future in Europe?

Towards the end of last month, we saw the first securitisation of European small business loans originated through the Funding Circle marketplace. By opening up small business lending to a wider range of investors, the platform becomes more sustainable for small businesses and investors alike. It also increases lending to the real economy and reduces small businesses’ dependency on bank lending. Further coverage was seen in Reuters.

Britain’s billion-dollar companies: rare finds or mythical creatures?

And finally, over the past few years the UK has fostered an increasing number of successful and fast-growing companies, who have helped to boost the country’s economic recovery through the creation of thousands of jobs. A question that’s often raised is, “When is your company looking to go public?” In our opinion, it’s important to focus on the development aspects first, such as building a robust platform and making the business the best it can be. Having a long-term plan in place that will allow your business to grow sustainably is vital to success.

*The estimated return as of 2nd June 2016 at Funding Circle is 7.1%. It is an estimate of the annual return after fees and bad debts that investors could earn from lending money to businesses seeking loans on 2nd June 2016 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. The average return is compounded and is updated daily.

Update on the Funding Circle ISA

Following our last update in April, we wanted to keep you up to date on our progress towards launching the Funding Circle ISA.

As you may know, in order to launch an Innovative Finance ISA, all peer-to-peer lending platforms are required to be fully authorised by the Financial Conduct Authority (FCA). We have been operating under interim permission since April 2014, and we continue to work closely with the FCA. Although significant progress has been made, it is important that the FCA completes this process in a thorough manner.

Therefore, we do not yet have a date for when the Funding Circle ISA will be available, however as soon as we do, we will let you all know.

Other ways to earn tax-efficient returns

In the meantime, if you are looking for tax-efficient returns you could consider the following:

  • The current tax year ends on 5 April 2017, so there is still plenty of time to take advantage before the subscription deadline. You can also open a Cash or Stocks & Shares ISA elsewhere and transfer it over to the Funding Circle ISA when it becomes available.
  • If you are based in the UK, you can earn tax-free returns by holding shares in the Funding Circle SME Income Fund through either a Stocks & Shares ISA or Self-Invested Personal Pension. Speak to your financial adviser for more information.
  • Thanks to the new Personal Savings Allowance introduced by the Chancellor last year, the first £1,000 of interest earned for basic rate taxpayers and the first £500 of interest for higher rate taxpayers is now free of income tax. The Personal Savings Allowance is not available for additional rate taxpayers. This applies to interest earned through Funding Circle as well as through other traditional savings accounts. More information, including a link to the full guidance from HMRC, can be found in our F.A.Q
  • If you are lending as an individual, a new bad debt relief is also available through peer-to-peer lending platforms for loans that have become irrecoverable. The tax statement available to you has been updated to reflect these changes, and more information can be found in our F.A.Q.

Remember, by lending through Funding Circle or investing in the Funding Circle SME Income Fund your capital is at risk.

We hope this update has been useful, however if you have any further questions please feel free to contact us and we’ll be happy to help

Enjoy lending,

The Funding Circle team

 

*This blog post is provided for information purposes only and is not intended to be construed as an offer, invitation or inducement to engage in investment activity in relation to – or a financial promotion of – Funding Circle SME Income Fund. Funding Circle does not give investment advice or recommendations and this blog post should not be relied upon as such*

Look out banks, soon we’ll be the biggest lender to small companies. April industry news

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Look out banks, soon we’ll be the biggest lender to small companies

Funding Circle has come a long way since the three founders, Samir Desai, James Meekings and Andrew Mullinger, rounded up £60,000 from their own pockets to get the business off the ground back in 2010. At the time, they thought there was probably space for a small player. Today Samir says, “Within two years we will be the biggest lender to small companies in the UK. We’re a huge part of the financial ecosystem now.”  With the continued support from you and other investors, we have truly been able to make a difference to small businesses across the UK.  

Milestone for European P2P securitisation

April proved to be an exciting month as the German development bank, KfW, invested in the first ever European securitisation of loans originated through the Funding Circle marketplace. They did this with support from the European Investment Fund, which provided a guarantee to their investment. Securitisation is a mechanism that provides larger investors with the ability to lend to small businesses, helping to supply much needed liquidity to the real economy. We want to create the infrastructure where any investor, big or small, can lend to small businesses, so that businesses have multiple sources of potential credit rather than relying solely on banks as they have done in the past. Further coverage can be seen in City AM and AltFi.

How to topple bureaucracy

As a company grows, so too does structure and hierarchy. The question is, “how do you create order and be more effective as a group?” Andrew Mullinger, Funding Circle co-founder, discusses the importance of keeping creativity, engagement and employee satisfaction alive in the workplace as well as implementing controls in a fair and efficient way. Handling staff in a fast-growing company can be a challenge, which is why a you need a system that suits your business’ needs.

Boss of Government-backed Business Bank is upbeat over increased lending

The Government-backed British Business Bank recently revealed a positive assessment of lending to small businesses in the UK. The flow of finance is increasing as bank lending begins to recover and alternative sources of finance are becoming better known, ultimately giving small business owners more choice in their search for finance.

Why big banks won’t be able to join the fintech boom

Another recent report shows that 63% of people who have used a fintech product are more likely to recommend them to friends than any other traditional provider. High-street banks are trying to keep up with these fast-growing new challengers, however many of the existing players are too big and burdened down by costs and an over-regulated market. Tie-ups between banks and marketplace lending platforms are increasing, which is fantastic as it allows businesses to have access to the finance they need. Check out our most recent case study on the blog that stemmed from our partnership with RBS.

The 40 coolest people in UK fintech

And to wrap up this month’s industry news, Business Insider recently put together the 40 most exciting people in the fintech scene right now, and Pam Burton, COO at Funding Circle UK, was ranked at number 5! The list features people who have been involved in successful tech companies in the past, or companies that have recently raised impressive amounts of money or scaled particularly quickly. Know anyone that deserves to be highlighted? Have your say in the comments!

Business inspiration from Leicester City

You would have been hard pressed not to have heard about Leicester City’s extraordinary Premier League title win earlier this week, an achievement scarcely believable considering the odds stacked against them. Some bookmakers quoted 5,000-1 for Leicester to win the league at the start of the season.

As a small business owner, it can sometimes feel like you are in your own David and Goliath story, but there are learnings we can apply from this ultimate sporting underdog tale to the small business world.

1. Spend wisely.

It would be inaccurate to portray Leicester City as paupers, the Deloitte Money League ranked them in the top 30 highest earning football clubs in the world for 2016. However the financial gulf between Leicester City and some of their rivals for the title was enormous, with Leicester’s wage bill around a quarter of Manchester United’s two seasons ago. For small businesses access to finance is integral for growth, but investing money in the right way is crucial to keeping ahead of the competition. Like Leicester, recruiting the right staff, with the right mentality, is crucial for success.

2. Teamwork makes the dreamwork.

Although they have some of the league’s outstanding players, a large part of Leicester’s success was driven by their ability to operate as a well drilled unit. Pundits and rival players have commented on how “The whole team all know their jobs, from front to back”, and Leicester’s tactics played to the strengths of the team. Your business may only have a small workforce compared to some of your competitors, but this provides an opportunity to really maximise the human capital available to you. Ensuring each member of staff knows their own role, and also their colleagues’, helps your business operate as a cohesive unit. In addition, setting collective goals for everyone to work towards as well as recognising that each employee will have their own individual ambitions, results in everyone pulling in the same direction.

3. Support from the top to the bottom.

From the boardroom to the changing room, each level of management within the Club looked to provide as much support as possible. For example, Leicester’s Thai owners flew a group of buddhist monks to the UK for most home games to bless the players before kick off, while the manager took the whole team out for pizza every time they achieved a clean sheet. Recognising even the smallest victory, by any employee at any level, helps build a culture that rewards and motivates your team to success.

4. Responding to setbacks.

One thing that surprised so many about Leicester’s season was just how consistent they were, responding to the inevitable bad results that occur over the course of the season instantly and decisively. Over the entire season, the longest Leicester went without a win is three games, and followed their last defeat with a ten game unbeaten streak. Likewise, when running any business setbacks are inevitable. What matters is how prepared your business is for when they occur, and most importantly, how you can apply the learnings that you and your team take from them.

We hope you have found this useful, and to find out if a business loan from Funding Circle is suitable for you, check your eligibility online in just 30 seconds.

The Funding Circle Team

The Funding Circle SME Income Fund

Last week we gave an update on the upcoming Funding Circle ISA, and explained that it is possible for investors to earn tax-free returns by investing in the Funding Circle SME Income Fund. In this piece we will look at the Funding Circle SME Income Fund in more detail, and how investors could consider including it as part of their diversified investment portfolio.

Before we go on, it is important to highlight that the Fund operates differently to investing directly on the marketplace, and any investors interested in investing in the Funding Circle SME Income Fund should first speak to a financial advisor.

What is the Funding Circle SME Income Fund?

The Funding Circle SME Income Fund is listed on the London Stock Exchange. Last November it raised £150 million from a range of investors – including asset managers, wealth managers and pension funds. Shares in the Funding Circle SME Income Fund may also be purchased by individual retail investors in the UK.

How does it work?

The Funding Circle SME Income Fund provides access to a diversified portfolio of loans originated through Funding Circle’s global geographies in the UK, USA, Germany, Spain and the Netherlands.

Rather than lending directly to businesses on the Funding Circle platform, investors purchase shares in the Fund itself, receiving income in the form of quarterly dividends. The annual target dividend yield is 6-7 pence per share once fully invested. Your actual return may be higher or lower since, like any investment in shares, your capital is at risk.

The Funding Circle SME Income Fund buys up to 35% of loans originated through the Funding Circle marketplace. Like other larger investors, it only buys whole loans and does not compete directly with individual investors, who purchase partial loans. The allocation between whole loans and partial loans remains completely random.

Including the Funding Circle SME Income Fund within your investment portfolio

For many investors, peer-to-peer lending will make up part of a diversified portfolio, with investments often spread across multiple asset classes such as equities, cash, stocks and fixed income products.

The Funding Circle SME Income Fund is an equity investment, so investors’ total return is made up of dividends received, plus appreciation (if any) in the share price of the Fund. Share prices can be subject to volatility over the short term, so the Fund can be considered a longer term investment. For individual investors, this could form part of a Self Invested Personal Pension, (SIPP).  A SIPP works like a personal pension, however investors have full control and make investment decisions on their own behalf. All earnings from investments held within a SIPP are tax-free. Investors can also include their investments in the Fund within a Stocks and Shares ISA.

How can I buy shares in the Funding Circle SME Income Fund?

The Funding Circle SME Income Fund operates as an independent company and investors are unable to buy shares directly from Funding Circle. Investors interested in purchasing shares may want to consider speaking with their financial advisor. For further information on the Funding Circle SME Income Fund, please visit its website: www.fcincomefund.com

We hope this post has been helpful. Over the next few weeks we will be discussing the benefits of tax free investing in more detail.

If you have any questions, please feel free to join the conversation on the forum.

The Funding Circle Team

*This blog post is provided for information purposes only and is not intended to be construed as an offer, invitation or inducement to engage in investment activity in relation to – or a financial promotion of – Funding Circle SME Income Fund. Funding Circle does not give investment advice or recommendations and this blog post should not be relied upon as such*

 

The Funding Circle ISA – latest news

As you may be aware, the government launches the Innovative Finance ISA in the new tax year, which will enable you to earn tax-free returns by lending to businesses directly through Funding Circle.

In order to launch an Innovative Finance ISA, all peer-to-peer lending platforms are required to be fully authorised by the regulator, the Financial Conduct Authority (FCA).  We have been working closely with the FCA on our submission and our work with them is progressing well. The FCA is close to completing their review process with us, however it will not be completed in time to launch the Funding Circle ISA on April 6, the first day of the new tax year.

We are excited to launch the Funding Circle ISA as soon as we have received full authorisation from the FCA and been approved as an ISA manager by HM Revenue & Customs, and are working closely with the FCA as it completes its review. We will keep investors updated with expected timings for launch of the ISA over the next few weeks.

In the meantime, we are pleased there are other ways investors can earn tax-free returns through the Funding Circle marketplace. Investors in the UK can hold shares in the Funding Circle SME Income Fund through either their existing Stocks & Shares ISA or Self Invested Personal Pension.

The Funding Circle SME Income Fund provides access to a diversified portfolio of Funding Circle loans across Funding Circle’s global geographies in the UK, USA, Germany, Spain and the Netherlands. The target Net Asset Value total return is 8-9% per annum, and the annual target dividend yield is 6-7 pence per share. For further information on the Funding Circle SME Income Fund, please visit the website: www.fcincomefund.com. Actual return may be higher or lower as by lending to businesses, your capital is at risk.

Information on the Funding Circle SME Income Fund can also be found on our blog.

Please contact your financial adviser with any questions about including shares in the Funding Circle SME Income Fund within your Stocks & Shares ISA or Self Invested Personal Pension.

The Funding Circle team

*This blog post is provided for information purposes only and is not intended to be construed as an offer, invitation or inducement to engage in investment activity in relation to – or a financial promotion of – Funding Circle SME Income Fund. Funding Circle does not give investment advice or recommendations and this blog post should not be relied upon as such*

Former Executive Board Member of the European Central Bank joins Funding Circle

Today we’re very pleased to announce the appointment of Jörg Asmussen to the Funding Circle board.

Jörg, a German economist and policy-maker has held a number of high-profile positions, most recently as State Secretary at the German Ministry of Labour and Social Affairs, Executive Board Member of the European Central Bank (ECB) and State Secretary at the German Ministry of Finance. We are extremely excited to be welcoming Jörg to the team.

Our ambition at Funding Circle is to build a global exchange where any investor, big or small, can lend to small businesses. Jörg’s experience and expertise will be very useful as we grow across the UK, US and Europe.

Commenting on joining the team, Jörg said: “I am pleased to join Funding Circle’s Board. The company operates at the frontier of innovation in financial services, providing business loans to small businesses in a transparent, easy to access and efficient manner, thereby helping to finance growth and create jobs. I am impressed by the high professionalism of the management team of Funding Circle and the soundness of the company’s operations throughout the whole value chain, providing a financially sound alternative for investors.”

Investors at Funding Circle continue to play a very important role in helping to rewire the financial services ecosystem by lending directly to thousands of businesses, helping them to grow. To date, you have helped to lend more than £1 billion to 13,000 businesses in the UK alone, creating an estimated 50,000 jobs.

The announcement marks another important step for Funding Circle, and you can read the full press release hereWe’re also talking about today’s news on our forum.

The Funding Circle team

The future of finance is changing for the better. January industry news.

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Bloomberg Business Innovators list 2016

In this year’s ‘Bloomberg Business Innovators list’ Funding Circle was named as one of the breakthrough businesses disrupting the way people live and work in the UK. From leading fintech start-ups to bionic hand creators, the British Business Innovators are transforming industries and changing the future for the better, according to CityAM.

UK tech sector raised $3.6bn venture capital in 2015

In 2015, the UK technology sector secured a record $3.6 billion from venture capitalists, up 70% from 2014. Funding Circle’s James Meekings was quoted saying, “Small businesses are the lifeblood of the economy. The money we raised, from some of the world’s leading investors, allows us to continue to increase the number of small businesses that can borrow through Funding Circle, both in the UK and across the world. We want to become the first choice for small business lending.” More coverage in Bloomberg, CityAM and Business Insider.

Three predictions for the City of London in 2016

Sir Roger Gifford, former Lord Mayor of London, explains his three predictions for the City of London in 2016, which includes the fintech revolution. The predictions show how the importance of financial technology is continuing to grow, with over 44,000 people currently working in the sector, and marketplace lending thriving within it.

Alternative finance must get over the final hurdles and be alternative no more

An article in The Independent discusses the move by marketplace lending platforms to establishing themselves as a genuine rival to the banks. A positive plan that is being put into place is the Government’s statutory referrals scheme. Under the scheme, banks will be required to refer businesses to alternative sources of finance instead of turning them down completely.

EY says there is a massive ‘void’ in fintech

With billions of dollars flowing into the fintech sector, Ernst and Young has run a survey to find out just how many people are using this type of technology. They found that out of 10,000 ‘digitally active consumers’ across the globe, 1 in 7 people consumers already use a financial technology product. This study links to a recent  survey by Transferwise  which predicts that in 5 years time, the amount of people using a technology provider for their financial needs will almost double.

Bye bye buy-to-let … but where next for your money?

And finally, over the past few years, there’s been a significant increase in buy-to-let in the UK, but recent Government announcements could make it less attractive. Marketplace lending is a potential option to suit landlords and other investors who are looking for a fairer and faster way to access income. This article in the Guardian highlights the positives of marketplace lending and the attractive rates you can receive if you properly diversify your investments. Learn more about what diversification can do for you on our blog, and remember, by lending to businesses your capital is at risk.

News

We’ve hit £1 billion!

And you’ve helped us reach this milestone. Thank you!

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The Funding Circle marketplace has reached a major milestone: lending £1 billion directly to small businesses in the UK.

More than half of this money was lent through the marketplace in 2015 alone, and you and other investors are on track to lend a further billion pounds within the next 12 months.

Lending directly to businesses on the marketplace means businesses can access finance which is fast, fair and fundamentally more efficient than alternatives. 

Reaching £1 billion is a fantastic achievement and this lending has resulted in an estimated 46,000 new jobs*. This is testament to the significant impact you and other investors at Funding Circle are having on UK economic growth.

Click here for more details about what £1 billion means. 

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The Funding Circle team.

 

Independent research by government think tank, Nesta, found that an average business borrowing through Funding Circle employs ~10 people and increases headcount by ~30% within 12 months of taking a loan. Nesta, Banking on Each Other, 2013.