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.
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:
- Gulet travel company is looking for a £72,920 loan
- Sussex accountancy firm requires a £200,000 loan
- Steel-work business needs a £100,000 loan
- Property developers need a loan for an Ealing development
- Office furniture wholesaler requires a £200,000 loan
- Residential property developers are looking for a £460,000 loan
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)
Number of listed loans per week
Listed loan value per week
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.