Fixed interest rate roundup and an interview with a borrower in The Times | Weekly Lending Review

Week 41: 5 – 9 October 2015

Fixed interest rates have been on the marketplace for just over two weeks since launching on Monday 28th September, so we wanted to share some initial insights into the trends we’re seeing on the marketplace which you can read about on the blog.

Thank you to everyone who has provided feedback. If you have any additional questions you can join us on the forum or send us an email: contactus@fundingcircle.com

New loans available to you

There are currently 30 loan requests on the marketplace, and thousands of loan parts available for you to buy.

The total value of new loans listed on the Funding Circle marketplace was £12,277,540 averaging at £75,704 per loan. The largest loan value was £415,000 and the smallest loan value was £5,160.

Business loans available to bid on:

Loan parts available for you to buy:

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 dates on the graph should be read as ‘week beginning’, for example: 5-Oct represents the week of 5th – 9th October 2015.

The average gross yield graph is reported weekly and shows a rolling two week average of gross yields. This calculation assumes you reinvest your interest each month and therefore includes the compound interest you earn (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)

yield WLR 41

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

Number of listed loans per week

loans listed WLR 41

Listed loan value per week

loan value WLR 41

Total amount lent

Amount lent WLR 41

Loan parts available to buy from other investors

loan parts WLR 41

News you should know

September industry news

The Times interviewed borrower Verto Homes, who are building 21 environmentally friendly family homes in Cornwall, and Funding Circle was ranked No. 1 in Business Insider’s 17 hottest fintech companies in Britain. Read our roundup of last month’s industry news on the blog.

Things we’re talking about

Trick or Treat?

Halloween’s approaching, but don’t be afraid. We’ve put together a list of ideas to make sure your friends and family have a frighteningly good time. Pick your poison on the blog.

Loans defaulted last week

Home insulation specialists. Loan 10851. Risk band A+

This Manchester business has been running since 2003 and is looking to be placed into creditors voluntary liquidation.

Food wholesaler. Loan 1368. Risk band A

This London business was established in 2006 and the borrower has become unresponsive.

Bus service operator. Loan 11003. Risk band D

This Glasgow business has been running since 2010 and ceased trading on 26 July 2015.

Our collections and recoveries team are working to recover the outstanding amounts for all of these loans and they will provide you with updates in the loan comments section on your summary page. Read more about how our collections and recoveries process works on our blog.
Enjoy lending, The Funding Circle Team

We’re introducing fixed interest rate loans today

At the start of September we announced plans to introduce fixed interest rates for all new loans, similar to how property loans have operated on the marketplace for 18 months. This is where Funding Circle sets the interest rate of the loan before it is listed on the marketplace. Rates are based on a number of factors including the risk band and term of the loan. 

We’re pleased to announce that the first fixed interest rate loans (other than property) will be listed on the marketplace today.

The new gross interest rates are listed below, before fees and estimated bad debts. These rates do not affect any of the loan parts you currently hold, they only apply to loan requests listed from 28th September 2015.

Please note these rates do not include property loans which will be set on a case by case basis. We’ll review these rates on a regular basis and notify you if they change.

Fixed rate card

Going forward you will see the interest rate available for each new loan request on the marketplace. Loans will continue to be listed for 7 or 14 days and during this time, you can choose whether to place a bid knowing your bid cannot be knocked out by other investors. 

If you use Autobid you will have received emails over the last 4 weeks regarding this update and your current settings. You can read more about updating your settings in our Autobid blog post here. If you’re unsure about what this means for you, please contact us and we’ll be happy to help. You can call us on 0800 840 4075, or send us an email.

 

 

Updates to our T&Cs and Privacy Policy

Following our announcement of moving to fixed interest rates for all new loans, on Monday, 28th September we will be updating the terms & conditions for both investors and borrowers. We’re also taking this opportunity to update and simplify other clauses, set out below.

What you need to do

From next week, if you’re an investor you’ll be required to re-accept the loan conditions next time you place a bid or buy a loan part, as the updates below are included in the loan conditions.

If you’re a borrower, there’s nothing you need to do other than read the new conditions.

Investor T&Cs:

  • We’re changing the term ‘lender’ to ‘investor’ so the T&Cs are consistent with the website.
  • Clause 4 – we’re removing references to auctions and adding that all new loans will be listed at fixed interest rates.
  • Introduction paragraph 5 – we’re clarifying there is one borrower contract and how it works.
  • Clause 12.4 – the term novation is changing to assignment as it better describes the way in which the transfer works, on default of a loan or sale of loan part on the secondary market.  Investors will now assign their rights to another investor or to a Funding Circle company on default of a loan, and the loan conditions provide that the new investor becomes party to the loan and takes on any obligations of the transferring investor. This has no impact on you but helps with certain regulatory analyses.
  • Clause 12.4 – we are removing the option to, and the 7 day window for, opting-out of the collections process. This means our collections team will be able to start the process faster than before, and work to recover the debt outstanding on your behalf. The opt-out provision was originally included within the terms when the collections process was outsourced, and has been used twice by investors out of a total of approx. 400 loans which have defaulted since 2010. Since bringing this function in house, where we have a dedicated team of specialists working to make recoveries on your behalf, the recoveries estimates have greatly improved: the current actual recovery estimated is 19.3p in the £, in comparison to 9.2p before, and across all loans the estimated recovery within 5 years of default is 40p in the £.

Borrower T&Cs

  • Changes to clause 3 to reflect the move to fixed interest rates for all new loans, where Funding Circle sets the interest rate of a loan before it’s listed on the marketplace.
  • Changes to paragraph 4 of the introduction and clause 3.12 to clarify how the borrower contract works.
  • Change to clause 1.5 – to add a borrower warranty and representation that it does not expect the information provided to change in any material way in the next 6 months, and an undertaking to update us if any information is likely to materially change.
  • Clarification in clause 4.3 that the interest rate stated in Key Contract Terms will not change.
  • Clause 8.4 – changes to clarify that a loan is assigned rather than novated.
  • Change to clause 8.7 to reflect that if we agree a payment plan, we can verify whether you can afford this by requesting information and doing credit checks.
  • Clause 9.2(b) – clarification that we can terminate membership if there is a breach of any security document, a facility letter in connection with property loans or any other documents arising out of the loan made on the platform

Updating our privacy policy

We are also taking this opportunity to simplify our privacy policy. The new policy is shorter, easier to understand and it better explains certain practices (including in relation to when we undertake credit reference checks and how you can contact us). There are no fundamental changes to how we collect and use personal data, we’re just simplifying our documentation.

If you have any questions about the above, please don’t hesitate to contact us and we’ll be happy to help.

Enjoy lending,

The Funding Circle team

Investor evening: meet the co-founders

In the third installment of our investor evening roundup, you can hear from Funding Circle co-founders Samir Desai, James Meekings and Andrew Mullinger who spoke at the recent event hosted at our London office.

They discuss the idea behind Funding Circle, what building a sustainable marketplace means for you, and future plans for the business.

Watch video:

Andrew started off the night by explaining why the three university friends decided to quit their jobs more than six years ago, to plan what would become the UK’s largest marketplace for small businesses loans.

James followed on to discuss how building a sustainable marketplace means having a diverse mix of businesses with thousands of loans, allowing investors to be diversified.

Samir rounded off the evening and talked in depth about raising capital, how lending to businesses across geographies may be possible in the future and gave a quick update on Funding Circle US.

Have you watched our highlights video from the event?

Meet the team: highlights from our third investor evening

Last month we had the pleasure of welcoming investors into our London office. Members of the Funding Circle team gave short updates on recent developments, such as the introduction of the new risk band, and how lending through marketplaces will be included within an ISA wrapper next year.

It proved to be a great forum for debate and feedback, with many interesting and useful points raised – we hope those that attended agree, and many thanks to you for giving up your time to come and say hello.

We appreciate that not everyone is able to travel to London, so we filmed the event and will be publishing three videos on the blog in the coming weeks. The first video, below, shows highlights from the evening and you’ll also hear from other investors about their experience of lending to businesses on the marketplace:

Are you interested in becoming a Funding Circle investor?

It takes minutes to sign up online and you can use our investor information guide to help you get started. We have 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.

 

Small updates to our terms & conditions

We’re making some small changes to our investor T&Cs this week, mainly to clarify how the marketplace works and to comply with regulation. Please see below for details:

Investor terms & conditions

  • Changes to clauses 1.10 to 1.14 to clarify that money must be paid in from, and withdrawn to, a bank account in the name of the Funding Circle account holder.
  • A change to clause 5.1 to clarify that we can make changes to loan conditions in respect of future loans, as long as we notify investors of such changes and they do not adversely affect investors.
  • Changes to clauses 10 and 12 to clarify that any debt collection activity is carried out by Funding Circle Limited.
  • Amendments to clauses 13.2(a) and (e) to make clear that we can, in the interests of all investors, terminate membership of Funding Circle if our marketplace is not being used for the purposes for which it is intended.
  • Some small changes to clause 25 (clauses 25.3 and 25.4) to clarify how we hold client money and how statements are provided.

If you have any questions about these updates please get in touch and we’ll be more than happy to help.

Enjoy lending,

The Funding Circle team

 

Improving our loan communications to investors

Over the last few months we have been looking at how we can further improve the information we share with investors regarding defaulted loans.

As you may be aware, in March we launched a RAG (Red, Amber, Green) rating system, also known as a Traffic Light system, in the Loan Comments in your summary page. Our Collections & Recoveries team provide regular detailed updates on loans currently late or in default where there has been a material development. So far, the feedback we have received from investors has been positive with many telling us they find the RAG system very helpful.

A summary email

As part of our goal to continue to improve communications around defaults, this month we have also started including a summary of your account within your monthly newsletter.

This includes:

– Your average return after fees and bad debts up to the end of preceding month (i.e. June)

– The number of businesses you were lending to

– The number of defaults you experienced in the last month, if any

– The total exposure of your overall investment this represents

This information, together with the RAG rating system will now replace the bad debt communication emails that are sent out each time a default happens. These emails will be phased out over the next month.

Together, these changes provide a regular, comprehensive overview of your account activities. Investors will not receive any less information regarding their accounts than before, as all information regarding loans is included in your summary page. We will continue to default loans on a Thursday and investors can see most recent defaults by reviewing comments in their summary page from noon every Thursday.

Introducing a live Q&A

In addition to these changes, we also want to provide you with a more direct way to communicate with our Collections & Recoveries team. From August, Andrew Jackson, our head of Collections & Recoveries will host a live Q&A every month. He will answer any questions around specific loans you have, and provide you with a general update on the team’s statistics.

If you would like to submit a question, please contact community@fundingcircle.com. Due to data protection, all questions regarding loans must not contain the businesses name, so in your questions, please refer to any business by its loan ID.

The Funding Circle team

 

How can small business owners finance their marketing?

A report released by the Government revealed there are 5.2 million SMEs in the UK. Yet how many are committed to the future growth of their business?

For SME business owners committed to putting growth plans in place, funding these essential steps can often be a cause for concern.

However this needn’t be the case as there are a number of grants available to businesses, some of which also cover the essential marketing spend that goes hand-in-hand with achieving sustained business growth.

Grant support

A grant is a specified amount of money that is given to a business to help with a certain project or purpose. There are a number of grants available from the Government, The European Union, local councils and charities.

You aren’t required to pay the grant amount back, but the competition for grants is high, so you have to make sure your business plan is solid to improve your chances of being considered. (For more information about getting your business plan right, read Cognition’s blog, ‘The Marketing Elements Every Business Plan Should Have To Help Secure Financing.’)

Which grant?

There are a number of different grants available (click here to browse through the different options), all of which come with their own specific access criteria.

However, given a bit of research you’ll find that they are often dependent on the location of your business, the length of time you’ve been trading for, your business turnover and the amount of money you’d like to receive.

For a grant that helps cover your marketing activity there are a number of options available, such as Business Development Grants.

These types of grants can be used in a number of ways to help SME owners grow their business, whether they’re being used for marketing, training, or to purchase equipment. The purpose of these grants is to help relatively established businesses reach that next level, by offering them a one off payment that doesn’t need to be paid back.

Business Development Grants are available from local governments and depend on which county your firm is located. To find about more about them, click here.

You could also consider applying for a Business Growth Service grant, designed to help businesses that have the ambition, capability and capacity to improve and grow. There are a number of criteria you’ll have to pass to be eligible for this type of grant, including having fewer than 250 employees and a turnover less than £40 million. You can find more about this grant, here.

So as you can see, there are a number of options for business owners committed to growing their business, and these are just two of the different types of grants available – there are many more out there. So do your research, and make sure that the grant you apply for supports a marketing strategy that will drive forward your business growth.

By Chloe McHugh, Cognition Agency

You read more tips by downloading any of Cognition’s free eguides.

Cognition is a full-service marketing agency and a Funding Circle borrower. It’s known for its commercial approach, linking marketing activity to revenue and growth.

If you’re interested in taking out a Funding Circle business loan, you can apply online at anytime.

Connecting you with more businesses you’ve lent to. Weekly Lending Review

Week 6: 2 – 8 February 2015

It’s been a fantastic start to February as you helped lend more than £9.4 million to UK businesses last week.

Of the new loans that were listed on the marketplace, construction was the most common sector and expansion was the most popular reason for needing funding.

New loans available to you

There are currently 84 loan requests on the marketplace which are all available for you to lend to.

The total value of new Funding Circle loans was £12,093,060 averaging at £64,324 per loan. The largest loan value was £300,000 and the smallest loan value was £5,000.

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

Weekly marketplace trends

These graphs show the most recent activity on the marketplace. The average gross yield graph is reported weekly and shows a rolling two week average of gross yields. This calculation assumes you reinvest your interest each month and therefore includes the compound interest you earn. Number of loans and value of loans are reported weekly. The dates on the graph should be read as ‘week beginning’, for example: 2-Feb represents the week of 2nd – 8th February 2015.

Weekly average gross yield (2 weeks rolling)

yield

Number of listed loans per week

number

Listed loan value per week

value

30% busier because of your lending

For our first business trip of 2015 we went to Bath to visit Elizabeth Season, co-owner of the Bath franchise of Neal’s Yard Remedies. Anne, who lent to the business alongside 900 other people, came along too. They borrowed £100,000 last year to refurbish their new shop.

News you should know

No update to minimum bid rates for March

Minimum bid rates will remain at their current levels for March:

A+: 6%

A: 8%

B: 9%

C: 10.2%

C-: 12.2%

We’re here to answer the questions you have

Join us on the forum this week to ask your tech and website related questions. We’ll have David T, our VP of Engineering answering them this week.

Loans defaulted last week

Healthcare provider. Loan 6251

This directors of this London business are entering bankruptcy and they are in arrears with their repayments. All affected investors have been notified.

Agricultural supplier. Loan 3276

This Pembrokeshire business has been trading since 2000 and is in arrears. All affected investors have been notified.

IT consultancy. Loan 3409

This London business has been trading since 2009 and the borrower is proposing a CVA (Company Voluntary Arrangement). All affected investors have been notified.

Catering equipment supplier. Loan 2667

This Essex business has been trading since 2010 and is in administration. All affected investors have been notified.

Construction contractor. Loan 1849

This Hampshire business has been trading since 2008 and is in administration. All affected investors have been notified.

Transport company. Loan 1415

This Chipping Norton business has been trading since 2002 and is in arrears with their repayments. All affected investors have been notified.

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

Enjoy lending, The Funding Circle Team

 

Meet the co-founders. Weekly Lending Review

Week 2: 5 – 11 January 2015

The marketplace is already filling up with over 50 new lending opportunities available to you right now. Of the new businesses that came to the Funding Circle marketplace last week, the majority were in the property and construction sector. The highest proportion of prospective borrowers were located in the Midlands.

New loans

There are currently 51 auctions on the marketplace which are all available for you to lend to.

The total value of the new listed loans was £8,579,720 averaging at £63,553 per loan. The largest loan value was £337,000 and the smallest loan value was £5,000.

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

Weekly marketplace trends

These graphs show the most recent activity on the marketplace. The average gross yield graph is reported weekly and shows a rolling two week average of gross yields. This calculation assumes you reinvest your interest each month and therefore includes the compound interest you earn. Number of loans and value of loans are reported weekly. The dates on the graph should be read as ‘week beginning’, for example: 5-Jan represents the week of 5th – 11th January 2015.

Weekly average gross yield (2 weeks rolling)

yield

Number of listed loans per week

number

Listed loan value per week

value

No update to minimum bid rates for February

We review the minimum bid rates in the middle of every month to decide whether they should be changed or kept the same. This month, we are keeping minimum bid rates for February at their current levels:

A+: 6%

A: 8%

B: 9%

C: 10.2%

C-: 12.2%

Meet the co-founders

In the final instalment of our November investor evening round up, and following on from the property focus video, we hear from co-founders Samir Desai and James Meekings.

 

Enjoy lending, The Funding Circle Team

 

How to get a high speed broadband grant for your business

Did you know that your business could get a voucher of up to £3,000 for faster, better broadband through the Government’s Broadband Connection Vouchers scheme?

How could your business benefit?

There are a number of benefits of using superfast broadband, including:

  • The ability to do things faster so you can increase your productivity
  • Improving your customer experience
  • Granting you access to new markets

What does the grant cover?

If you’re eligible for this grant, you could receive up to £3,000 to cover the installation costs of upgrading to a faster and more reliable connection for your business. You could get a fiber optic, cable or wireless broadband connection and most businesses pay nothing but VAT and their standard monthly charge.

Find out instantly whether your area is covered in the scheme

All you need to do is enter your postcode into the eligibility checker and you’ll find out instantly whether your business is in the catchment area.

Time is running out, so make sure you visit the Connection Vouchers website to find out if your business is eligible before it’s too late!

 

Funding Circle launches first ever national TV advertising campaign

Today is an exciting day at Funding Circle as we launch our first ever national TV advertising campaign. This move represents a big step for everyone involved in the company and will help to raise awareness of the Funding Circle marketplace to business owners here in the UK.

To mark the launch, James Meekings, co-founder of Funding Circle said;

“We’re building a business at Funding Circle that is changing the global financial infrastructure. This campaign is a natural next step for us as we continue to build trust and credibility for the brand, and enables us to tell our story in a creative and exciting way.

The team at Karmarama have created a campaign which explains how we operate in visually striking and beautiful way – and we’re looking forward to seeing the results”.

The 30 second advert will run across national TV channels and you can view it here. You can also see a 60 and 10 second version of the advert on our YouTube page, and watch a short video showing how the advert was made.

We hope you enjoy them!

The Funding Circle team

Displaying estimated returns

At Funding Circle we are constantly reviewing the information we provide to investors and we’re committed to providing simple and easy to understand information about how Funding Circle works, to help investors make an informed and educated decision about lending.

One area we have been reviewing recently is how we display annual returns investors can expect to achieve. As many of you will know, traditionally we have displayed this return based on past performance of loans.

Whilst we’re happy with how we display this information, we want to do more to give investors an up-to-date representation of the returns they could earn from lending to businesses seeking loans today. Therefore, from today you will see that we are also starting to show current estimated returns. We feel this is a more accurate reflection of the rates people can expect to achieve from lending today.

This figure is calculated based on the average gross interest rate from the last 100 loans, minus our annual fee and expected annual bad debts. It is compounded and before tax. You can read more details on the calculation here. We will still continue to clearly display past returns on our statistics page.

If you have any questions please get in touch or join the conversation on the forum.

The Funding Circle team​.

 

Record £6.4m lent to coincide with our 4th birthday. Weekly Lending Review

Week 33: 11 – 17 August 2014

Last week, we welcomed over 100 new businesses to the marketplace; the majority of which were allocated an A risk band.

Investors had bids of up to 15% accepted on loans in the C risk band, and bids of up to 14.1% in loans in the A+ risk band*. We also saw a record £6.4 million lent to businesses across the UK, thanks to all of your lending.

New loans

There were 102 new business loans listed last week and there are currently 61 auctions on the marketplace.

The total value of the new listed loans was £6,836,040; that’s an average of £67,020 per loan. The largest loan value was £460,000 and the smallest loan value was £6,260.

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

Weekly marketplace trends

These graphs show the most recent activity on the marketplace. The average gross yield graph is reported weekly and shows a rolling two week average of gross yields. This calculation assumes you reinvest your interest each month and therefore includes the compound interest you earn. Number of loans and value of loans are reported weekly. The dates on the graph should be read as ‘week beginning’, for example: 11-Aug represents the week of 11th – 17th August.

Weekly average gross yield (2 weeks rolling)

yield

Number of listed loans per week

number

Listed loan value per week

value

News you should know

Update to minimum bid rates

We review the minimum bid rates in the middle of every month to decide whether they should be changed or kept the same. A number of factors are considered when reviewing the rates, including general economic conditions and costs of alternative borrowing products. This month, we have decided to increase rates by 0.2% on the C- risk band. These changes will take effect on Monday 1st September. The new minimum bid rates for loan requests listed after 9am on 1st September are as follows:

A+: 6% (no change)

A: 8% (no change)

B: 9% (no change)

C: 10.2% (no change)

C-: 12.2% (+ 0.2%)

Happy Birthday Funding Circle!

It was our 4th birthday last week and to celebrate, we published an infographic which tracks the rise of peer-to-peer business lending up to this year, when the industry became formally regulated.

2 weeks left to share £100 with a friend!

If you recommend a friend to Funding Circle and they lend at least £1,000 to businesses by the end of the offer period, you could each have £50 cashback** paid into your Funding Circle accounts. There’s only 2 weeks to go to recommend a friend to Funding Circle, so make sure you don’t miss out.

Loans defaulted last week

Radiator retailer. Loan ID 2125

This Northill business has been trading since 1997 and is in liquidation. The original loan amount was £100,000 and all affected investors have been notified.

Heating maintenance business. Loan ID 2721

This Widnes business has been trading since 1995 and is in arrears with repayments. The original loan amount was £30,000 and all affected investors have been notified.

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

 

Enjoy lending, The Funding Circle Team

 

* Based on all successful bids in loans accepted on the marketplace from 11th August – 17th August.

**Terms and conditions apply

 

Helping more businesses and £6m of new loans. Weekly Lending Review

Week 28: 7 – 13 July 2014

It was a great week for listings as 109 new lending opportunities became available to you, with the total value of over £6 million. Of the loans that were listed last week, manufacturing was the most common sector and working capital was the most popular reason for funding.

New loans

There were 109 new business loans listed last week and there are currently 84 auctions on the marketplace.

The total value of the new listed loans was £6,171,580; that’s an average of £56,620 per loan. The largest loan value was £370,000 and the smallest loan value was £5,000.

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

Weekly marketplace trends

These graphs show the most recent activity on the marketplace. The average gross yield graph is reported weekly and shows a rolling two week average of gross yields. This calculation assumes you reinvest your interest each month and therefore includes the compound interest you earn. Number of loans and value of loans are reported weekly. The dates on the graph should be read as ‘week beginning’, for example: 7-Jul represents the week of 7th – 13th July.

Weekly average gross yield (2 weeks rolling)

yield

Number of listed loans per week

number

Listed loan value per week

value

Summer special: share £100 with a friend!

If you recommend a friend to Funding Circle and they lend at least £1,000 to businesses, you could each have £50 cashback* paid into your Funding Circle accounts.

Update to minimum bid rates

We review the minimum bid rates in the middle of every month to decide whether they should be changed or kept the same. A number of factors are considered when reviewing the rates, including general economic conditions and costs of alternative borrowing products. This month, we have decided to increase rates by 0.1% on both the C and C- risk bands. The new rates will take effect on Friday 1st August. The new minimum bid rates for loan requests listed after 9am on 1st August are as follows:

  • A+: 6% (no change)
  • A: 8% (no change)
  • B: 9% (no change)
  • C: 10.2% (+ 0.1%)
  • C-: 12% (+ 0.1%)

Planned business advisory service for our borrowers

We’re planning to launch a free advisory service for Funding Circle borrowers, to help them make the most out of their Funding Circle loan. This will include a 60-90 minute session from a Funding Circle account manager and an independent business advisor of their choice, to look deeper into any business need they’d like to focus on.

Assessing more businesses on a case by case basis

As part of our ongoing work to improve and innovate the service we provide to both borrowers and investors, we are starting to review loan applications where the business has a turnover between £50k and £100k.

Loans defaulted last week

Film equipment provider. Loan ID 2009

This Guildford business has been trading since 2005 and entered administration last month. The original loan amount was £100,000 and all affected investors have been notified.

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

Enjoy lending, The Funding Circle Team

*Terms and conditions apply.

 

Cashback & £6.9m of new loans

Week 13: 24 – 30 March 2014

It was the biggest week to date for the number of loans listed on the marketplace, with 121 new lending opportunities available, totalling nearly £7 million.

Funding Circle investors have also secured interest rates of up to 13.5%, 14.6% and 15%* on loans in the A+, A and B risk bands over the past 7 days, and with 1% cashback** available on certain loan requests, it’s an exciting time to lend.

New loans

There were 121 new business loans listed last week and there are currently 91 auctions on the marketplace.

The total value of the new listed loans was £6,859,760; that’s an average of £56,692 per loan. The largest loan value was £156,260 and the smallest loan value was £10,000.

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

News you should know about

A great budget for peer-to-peer lending

In the March Budget it was revealed that peer-to-peer lending will be included in ISAs and there will be a consultation into the referral of small business leads from banks to alternative funders.

Community Forum

The forum was down last week for maintenance but it is back up and running and it has a new look too. Start talking to others on our community forum.

Loans defaulted last week

Printers and designers. Loan ID 2222

This business designs and prints marketing materials and has fallen into arrears with repayments. The original loan amount was £25,000 and all 379 investors have been notified.

Paint supplier. Loan ID 466

This South Shields business has been trading since 1974 and has fallen into arrears. The original loan amount was £50,000 and all 479 investors have been notified.

Our insolvency team are working to recover the outstanding amounts for all of these loan.

Enjoy lending, The Funding Circle Team

 

 

*Based on successful interest rate bids on all loans accepted between 25/03/2014 and 31/03/2014. See our statistics page for the latest accepted rates.

**Terms & conditions apply.

Investment through Funding Circle involves lending to small and medium sized businesses, so your investment can go down as well as up. Remember, past returns are not necessarily a guide to future returns.

Rules for peer-to-peer lending announced. Your weekly lending review

Week 10: 3 – 9 March 2014

Last week, 97 new loans were listed on the marketplace, most of which were allocated to the A risk band. The majority of businesses looking for funding were located in the South East of England and the most popular business sectors were manufacturing and property & construction.

New loans

There were 97 new business loans listed last week and there are currently 90 auctions on the marketplace.

The total value of the new listed loans was £5,285,700; that’s an average of £54,492 per loan. The largest loan value was £150,000 and the smallest loan value was £6,000.

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

Weekly marketplace trends

These graphs show the most recent activity on the marketplace. The average gross yield graph is reported weekly and shows a rolling two week average. Number of loans, value of loans and secondary market are reported weekly. The dates on the graph should be read as ‘week beginning’, for example: 3-Mar represents the week of 3rd – 9th March.

Weekly average gross yield (2 weeks rolling)

yield

Number of listed loans per week

number

Listed loan value per week

value

News you should know about

Peer-to-Peer Lending Regulation

Last week, the Financial Conduct Authority published the final rules for peer-to-peer lending which will take effect on 1st April.

The top 6 P2P industry news articles from last month

Including the Daily Telegraph kicking off a campaign which called for peer-to-peer lending to be included within a stocks and shares Isa.

Recommend a friend and share £80

If you recommend a friend to Funding Circle and they lend at least £1,000 to our great British businesses, you could each have £40 cashback* paid into your Funding Circle accounts!

Community Discussions

This week we’re talking about display suggestions for the loan request page. You can join the discussion on our community forum.

Unsure how to get started with lending?

Take 5 minutes to read through our blog which explains how to start lending to businesses through Funding Circle.

Loans defaulted last week

Camping shop. Loan ID 1950

This Swansea business has been trading since 2003 and has failed to keep up with repayments. The original loan amount was £51,500 and all 568 investors have been notified.

Windows manufacturer. Loan ID 1873

This Newark business has been trading for 6 years and went into liquidation in December. The original loan amount was £25,000 and all 238 investors have been notified.

Printing company. Loan ID 71

This Wiltshire business has been trading for 20 years and has failed to keep up with repayments. The original loan amount was £30,000 and all 253 investors have been notified.

Solicitors firm. Loan ID 3298

This St Albans legal firm has been trading for 6 years. The original loan amount was £100,000 and all 1,076 investors have been notified.

Our insolvency team are working to recover the outstanding amounts for all of these loan.

Enjoy lending, The Funding Circle Team

* Terms & conditions apply

Read last week’s lending review

iPad app & update to the annual net return. Weekly Lending Review

Week 8: 17 – 23 February 2014

Last week, a record £6.3 million worth of new loans were listed on the marketplace, available for you to lend to. The majority of loans were assigned to the A risk band and the South East of England had the most businesses looking for funding.

Investors have also secured rates as high as 15%, 14.9% and 14.7% for loans accepted in the C-, B and A risk bands respectively* so now is a great time to increase your lending to businesses across the UK.

New loans

There were 97 new business loans listed last week and there are currently 84 auctions on the marketplace.

The total value of the new listed loans was £6,313,520; that’s an average of £65,088 per loan. The largest loan value was £250,000 and the smallest loan value was £10,400.

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

Weekly marketplace trends

These graphs show the most recent activity on the marketplace. The average gross yield graph is reported weekly and shows a rolling two week average. Number of loans, value of loans and secondary market are reported weekly. The dates on the graph should be read as ‘week beginning’, for example: 17-Feb represents the week of 17th – 23rd February.

Weekly average gross yield (2 weeks rolling)

yield

Number of listed loans per week

number

Listed loan value per week

value

Our iPad app has landed in the App store

You can now download the Funding Circle app for free for use on your iPad. You won’t miss out on the end of auctions again as you can turn on alerts which will notify you of auctions closing.

Annual net return increase

Last week we updated the headline annual net return rate across the site. We have also decided to change the headline rate from a simple average to a weighted average based on the amount each investor has lent, as we think this is a better reflection of the performance of all lending.

Recommend a friend and share £80

If you recommend a friend to Funding Circle and they lend at least £1,000 to our great British businesses, you could each have £40 cashback** paid into your Funding Circle accounts!

Community Discussions

This week we’re talking about interest and fees. You can join the discussion on our community forum.

Unsure how to get started?

Take 5 minutes to read through our blog which explains how to start lending to businesses through Funding Circle.

Loans defaulted last week

Egg producer. Loan ID 1396

This Scarborough business produces free range eggs and has been trading since 2010. The original loan amount was £20,000 and all 234 investors have been notified.

Adult careers service. Loan ID 1546

This Bridlington business has been trading since 2001 and has failed to keep up with repayments. The original loan amount was £50,000 and all 571 investors have been notified.

Our insolvency team are working to recover the outstanding amounts for all of these loan.

Enjoy lending, The Funding Circle Team

 

*Based on all successful bids into loans accepted between 17/02/2014 and 23/02/2014. For further information please see our statistics page.

** Terms & conditions apply

 

Annual net returns update

Today, we’ve updated the headline annual net return rate across the site.

The previous reported headline rate was a simple average across investors and was 5.7%. This has now risen to 5.8%.

As part of this update we have decided to change the headline rate from a simple average to a weighted average based on the amount each investor has lent.

Given the range and types of investors on the site, we think this is a better reflection of the performance of all lending through Funding Circle. We also expect this approach to be in line with FCA regulation starting in April 2014. The headline rate is now showing as 6.1%, up from a comparative figure of 5.9% previously.

The weighted average for investors who are lending to more than 100 businesses with a maximum exposure of 1% of their lending to anyone business is 6.3%, and 71% of investors are earning more than 6%, up from 62% in the previous period.

net returns

You can see the full updated statistics on the statistics page.

Enjoy lending

Updates to the Terms & Conditions and Minimum Bid Rates

Weekly Lending Review 

Week 7: 10 – 16 February 2014

Last week, a record £5.4 million made its way to businesses across the UK thanks to your lending. We also saw close to 100 new business loans available for you to lend to, totalling £5.6 million.

The average gross yield for investors has been increasing steadily over the past month across all risk bands, with rates as high as 15%, 14.8% and 14.4% accepted into loans last week, in the C-, B and C risk bands respectively.*

New loans

There were 96 new business loans listed last week and there are currently 86 auctions on the marketplace.

The total value of the new listed loans was £5,632,880; that’s an average of £58,676 per loan. The largest loan value was £150,000 and the smallest loan value was £5,000.

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

Weekly marketplace trends

These graphs show the most recent activity on the marketplace. The average gross yield graph is reported weekly and shows a rolling two week average. Number of loans, value of loans and secondary market are reported weekly. The dates on the graph should be read as ‘week beginning’, for example: 10-Feb represents the week of 10th – 16th February.

Weekly average gross yield (2 weeks rolling)

yield

Number of listed loans per week

number

Listed loan value per week

value

Updates to the Terms & Conditions

We’ve made some change to our terms & conditions which will reflect (1) improvements to our debt collection processes, (2) more lending and borrowing opportunities, and (3) necessary changes for FCA regulation later this year. You can read about the changes in more detail on our blog. It’s important to have a look, as by continuing to use the Funding Circle marketplace you agree to be bound by these revised terms.

No change to minimum bid rates

We review the minimum bid rates in the middle of every month to decide whether they should be changed or kept the same. Minimum bid rates for March will remain at February levels, as the majority of loans have been clearing above these rates: 6%, 7.9%, 8.9%, 9.9% and 11.6% for the A+ to C- risk bands.

Recommend a friend and share £80

If you recommend a friend to Funding Circle and they lend at least £1,000 to our great British businesses, you could each have £40 cashback** paid into your Funding Circle accounts!

Unsure how to get started?

Take 5 minutes to read through our blog which explains how to start lending to businesses through Funding Circle.

Community Discussions

This week we’re talking about updates to the T&Cs. You can join the discussion on our community forum.

Loans defaulted last week

Berkshire restaurant. Loan ID 697

This business operates a Michelin star restaurant and has been trading since 2004.The original loan amount was £100,000 and all 727 investors have been notified.

Fish & chip restaurant. Loan ID 135

This Norfolk business has been trading since 2006 and suffered a fire at their premises last year. The original loan amount was £30,000 and all 308 investors have been notified.

Our insolvency team are working to recover the outstanding amounts for all of these loans.

Enjoy lending, The Funding Circle Team

* Based on all successful bids into loans accepted between 10/02/2014 and 16/02/2014. For further information please see our statistics page.

** Terms & conditions apply.