Get into the Olympic spirit!

Last Sunday marked the end of the 2018 Winter Olympics, with a dazzlingly choreographed closing ceremony in Pyeongchang. It’s been a real treat with some epic moments, but the fun doesn’t have to stop there.

We’ve found five Funding Circle borrowers who can help you carry on living the Olympic adventure.   

Hit the slopes

What better way to follow in your heroes’ footsteps than to book a luxury skiing holiday in the Alps? Ski Morzine have fully catered and self-catered chalets superbly located in the Portes Du Soleil. Not only will you have access to the full range of ski slopes and runs, but your evenings will be as comfortable as it gets – with free WiFi, sauna and even an ‘in-house cinema’!

Funding Circle is Ski Morzine’s preferred source of additional funding when looking to expand their portfolio of chalets.

Try something a little closer to home

The Olympics were great, but not everyone has the time to whisk themselves away to the Alps for a week. Fortunately, there’s plenty of opportunities to get involved here in the UK. Take Ice-Magic Ice Rinks, who have been supplying and renting synthetic ice rinks for the past 14 years. Maybe your upcoming event could do with something different? Perhaps an adrenaline-filled ice hockey match for your next company bonding? You could even recreate Torville and Dean in your back garden! If ice skating isn’t your forte, they also manufacture and hire curling lanes – they’ve even supplied one to Team GB! Whatever you’ve got in mind, these guys have you covered.

Look the part

Whether you’re at home or abroad, if you’re getting involved with winter sports it’s important you’ve got the right gear. Finches Emporium, a family-run sports store, have everything you need to get kitted out for the slopes. If snowboarding is more your thing, then Snowtart are one of the few South East-based snowboarding specialists outside of London.

Finches borrowed through Funding Circle in May 2014 to support an advertising campaign, while 171 investors lent to Snowtart to help them expand into international sales.

Wind down with a winter warmer

After a full day on skis, boards or skates, what better way to regale your friends with your exploits than over a bottle of organic sloe gin? Bramley & Gage offer different varieties of great-tasting spirits, gins and liqueurs. Their Six O’Clock Gin has won numerous national and international awards. To purchase a new gin still and increase their distilling power, the business has borrowed £65,000 over 2 loans since 2013.

Are you interested in lending to businesses like these?

Lend alongside 78,000 investors and support small businesses across the UK by signing up online today. You can use our investor information guide to help you get started. There are thousands of loans which you can be a part of, making it quick and easy to build a diversified portfolio. Remember, by lending to businesses your capital is at risk.

Looking to expand your business?

More than 34,000 businesses in the UK have accessed finance through Funding Circle. You could boost your cash flow, refurbish premises, hire staff and much more. Check if you qualify for a business loan online in just 30 seconds.

Your February Review – Insight and Analysis

YourFebReview

Last month Funding Circle investors, like you, lent over £117 million to UK businesses to help them grow and develop.

Dive in below for your monthly analysis and read the latest blog by Simon Read, a personal finance expert. With extensive experience in helping people making the most of their money, Simon discusses saving for your summer holiday.

JanLendingFigures

Last month, you and other investors helped businesses to take new opportunities, create new jobs and drive energy into the UK economy. Thank you for your continued support!

FebLendingBlock

Read between the lines: Saving for your summer holiday

Are the short nights and cold days making you want to book a holiday away in the sun? Dive in for Simon Read’s top tips for ensuring you can plan and save efficiently for the holiday you’ve been dreaming of.

MonthyTrends

These graphs show the most recent activity on our platform.

You’ve helped more than 9,700 small businesses access finance in the last 6 months…

 

FebVolume

Totalling over £650 million lent

 

FebValue

January 2018 sector breakdown

Amount lent to each sector

FebSector

January 2018 regional breakdown

Amount lent to each UK region

FebRegion

LoansDefaulted

As part of lending to businesses, a small percentage will not be able to fully repay their loan. This is known as bad debt and is a normal part of business lending. We believe diversification, where you lend no more than 1% of your total to each business, is the best way to reduce the impact this has on your return. Our automatic lending tool will help you diversify by splitting your investment across lots of businesses. We suggest lending £2,000 or more, so you can lend to at least 100 businesses, with no more than 1% going to each one.  

Each week, we publish a list of the loans being defaulted on the Customer support section of our website under ‘Announcements.’ To see a breakdown of the loans defaulted last week simply click on loans defaulted 2nd February 2018For further information on why Funding Circle defaults loans you can read our FAQ here.

Collections

HowItWorks

You can also read more about how our collections and recoveries process works (part one and part two) on our blog.

Up next in February we’ll be looking at the impact your lending is having on the UK economy and bringing to life some of the businesses you’ve helped access finance.

As always, if you have any questions or comments our dedicated team are here to help. And if you have any further suggestions we’d love to hear them.

Enjoy lending, the Funding Circle team

*Data from CEBR report

This blog is a general summary, and should not replace financial advice tailored to your specific circumstances. Funding Circle is not authorised to, and does not, provide investment, tax, legal or regulatory advice. If you have any questions, please speak to your professional advisor or seek independent specialist advice.

Read between the lines: Saving for your summer holiday

We regularly bring you a column from Simon Read, a personal finance expert with extensive experience in helping people make the most of their money. In his last piece, Simon looked at the cost of Christmas.

If you’re like me, the depressing weather at this time of year will make you want to have something good to look forward to – a holiday in the sun! And knowing that in a few months you could be sitting poolside sipping a cocktail, or exploring that old ruin with the sun in your eyes, is a good way to help cope with the shorter nights and rainy days.

But assuming you want – like me – to have a fantastic summer holiday to look forward to, the question is, how to pay for it? The easiest and most convenient way is to simply put it on the credit card. You can worry about paying for it later but, if you’ve been sensible, you’ll have a piece of plastic that gives you cashback or loyalty points. If you’re splashing out a couple of grand on a decent holiday, think how much cashback that’ll net you!

But, and it’s a big but, if you don’t pay off credit card debt right away, you end up being stung by high interest. And that could mean putting your dream trip on plastic proves a costly mistake. If you can’t pay off the whole amount in one go, you could box clever by opening a card with a 0% deal and transferring the debt to that. However, that’s not taking account of the balance transfer fee. Many cards charge 3% for that so if you transferred £2,000 you’d have to pay out £60 for the privilege.

So maybe sticking the holiday on a credit card is not such a good idea. In fact it’s a lousy one. The simplest and easiest way to pay for a holiday is to plan for it. You know you’re going to go away in the summer so start saving for it months ahead. In fact the best way to pay for a holiday is to have a regular savings habit into a holiday account. Work out how much you plan to spend on your breaks each year and stash a 12th of the total away each month.

That should mean that paying for trips is painless. But it does mean planning; not just planning your saving but also your spending. You know when you have big costs coming up, annual insurances or council tax for instance, as well as holidays. Your saving plan should take account of your spending needs so that you can cope with big costs without having to dip into the red or use an expensive credit card.

In other words, think about what you’re saving for in 2018. For long-term savings you want to find the best possible return on your cash, which will mean being happy about making the most of peer-to-peer opportunities, or bonds. But for short-term savings where you know you will need the cash in a matter of months, you should keep it in an account that is easy to access. That will mean sacrificing decent returns for paltry ones, but is the price you have to pay.

Sorting savings into short-term and long-term is a good way to start a sensible savings plan.

That’s especially important as it means that once you’ve accounted for all your short-term needs, for holidays and bills and so on, the rest of the cash you have available to put in a nest egg can be used to get better returns. And that will leave you laughing all the way to the river bank or beach, depending on your chosen holiday.

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

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

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

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

January’s Lending Impact and Borrower Stories

JanInvestorImpact

This month’s lending impact is all about kick-starting a healthy new year. First, we meet Arapina, an award winning bakery offering guilt-free sweet treats made from all natural ingredients. Next up, get in shape with five Funding Circle businesses who were able to grow thanks to your lending.

GreatMonthFor

This month we’re proud to announce we took home 3 awards at the AltFi Awards 2017. This included the coveted Editor’s Choice Award, as well as P2P Business Platform of the Year and Best Clarity of Data. With your continued support, we strive to grow our success even further in 2018.

JanSuccessStory
Arapina

Meet Michaela, the driving force behind the award winning healthy lifestyle bakery, Arapina. Originally from Crete, Michaela grew up eating locally sourced, natural and healthy home cooked food. After moving to London, Michaela found it increasingly difficult to find sweet treats that satisfied both her vegan diet and her taste buds. As a result, Michaela, or “Lady M” as she’s known, set up Arapina to offer delicious guilt-free treats made from the best natural ingredients.

Since 2013, their mission has been to carve a path away from the sugary, artificial produce found in many bakeries and instead offer people a healthy, yet delicious, alternative. Originally, Arapina traded with only one type of cake – the famous chocolate Arapina. As the years progressed and crowds grew fond of Arapina’s delectable delights, they decided to expand their menu. Today, their decadent cakes and desserts cater for all dietary requirements, including dairy free, gluten free and vegan recipes.

Thanks to your continued support, Michaela and the team were able to purchase new equipment after relocating into their own production and retail unit.

Stay tuned as we’ll be bringing you a behind the scenes case study video very soon.

Yoga, Pilates or Bodybarre? How will you stay in shape in 2018?

It’s that time of year when the decision to become fitter is top of everyone’s to do list. Many of the world’s most well-known and successful entrepreneurs consider yoga, pilates and other forms of exercise as an essential ingredient for their continued success. Head to our blog to discover five businesses to help you get in shape this year. All of these businesses were able to achieve their goals thanks to your lending.

December’s Lending Impact and Borrower Stories

In case you missed it, here’s last month’s post, where we met the founder of the Creative Whisky Company in our latest case study video and took a tour through small business past, present and future.

Up next

At the beginning of February we’ll publish our Insights and Analysis blog to review January’s activity. This includes statistics from across the platform and helpful tips to make the most of your investment.

As always, if you have any questions or comments our dedicated team are here to help. And if you have any suggestions we’d love to hear them.

Enjoy lending, the Funding Circle team

A helping hand to small businesses. December industry news.

Peer-to-peer lender shows how it’s done – Evening Standard

Happy new year! To date, you and other investors have helped a network of 40,000 businesses access $5 billion of finance globally, which has created an estimated 100,000 new jobs. This growth also saw Funding Circle become the first lending platform in the world to have facilitated more than $1 billion across two markets. None of this would have been possible without your continued support over the years, so thank you!

Brighton named ‘most enterprising’ UK city – Brighton and Hove Independent

To better understand the mentality of small business owners, we recently launched a survey which found that more people living in Brighton (64%) believe they have the right skills to set up a business than anywhere else in the UK. Christine Johnston, Brighton-based founder of The KiTE, SURF & SUP Co and Funding Circle borrower, said: “These results reveal what those of us who have set up businesses in Brighton have known for years. It’s not just the infrastructure that makes Brighton such an appealing place to start a business, it’s the type of people that gravitate towards the city and the culture that’s been created as a result.”

A helping hand for small businesses – MoneyWeek

Even a decade after the credit crunch, too many British small businesses still feel their potential is being hindered by a lack of access to suitable finance. Raising awareness of other avenues of finance available, such as borrowing directly from investors through lending platforms, is crucial for their development. When small businesses flourish, thrive and go even further, so does our economy. Read more about how the online lending sector is lending a helping hand to small businesses in the Independent.

The UK’s ‘alternative finance’ industry is now worth £4.6 billion – Business Insider

In 2017 alone, the UK’s alternative finance industry generated £3.3 billion of funding and grew by 43% from the previous year, according to a report from the Cambridge Centre for Alternative Finance. Of that funding, a whopping three-quarters went to start-ups and small businesses across the country, which is a 50% increase from 2015. It’s hugely encouraging to see that as the adoption of the sector continues to grow, more and more business owners and investors benefiting as a result.  

A brave new world: will open banking boost the UK FinTech sector? – Forbes

As some of you may know, Open Banking was designed to enable bank customers to authorise third parties, such as challenger FinTech players, to access their account details in order to create more competition and choice in financial services. Not only will this allow individuals to choose where they bank more easily, but it will also incentivise developers to create innovative apps from the new data streams, such as dashboards that list all your financial products in one handy place. Whilst the full potential of Open Banking is still unknown, it’s clear that it has the power to completely transform the way we bank.

Players who swapped the bit parts for starring roles – The Times

And lastly, to finish up the final industry news roundup of 2017, we were pleased to see our CEO and co-founder Samir Desai be named as one of The Times’ Ones to Watch for 2018. At Funding Circle, we’ve never been more excited to see what the future will bring, and we hope that you will continue on this journey with us. Together we’re creating jobs, supporting local communities and driving the economy forward. Here’s to a fantastic 2018!

News

Make the most of your lending experience

Here are some of our key tips to help you get the most from your lending experience as a Funding Circle investor.

Set yourself up to earn a more stable return

Data at Funding Circle shows that investors who diversify by lending small amounts to many businesses are more likely to earn a stable return. 

Becoming diversified has never been easier, as our lending tool automatically lends no more than 0.5% of your portfolio (subject to a minimum of £10) to each business. We suggest building a portfolio of at least £2,000 to help you lend to at least 200 businesses.

Check your Lending Settings are right for you

When lending through Funding Circle you can choose from one of our two lending options, Balanced or Conservative. Both options will allow you to quickly and easily build a portfolio of creditworthy businesses depending on your personal preference:

  • Balanced – lend to the full range of creditworthy businesses, aiming to achieve an attractive, stable return.
  • Conservative – focus on businesses that have been assessed as lower risk, but with a lower projected return.

It’s important that the lending option you have chosen is right for you. You can review and change your chosen option in the Lending Settings page when logged in to your account. This is also where we will display the current projected return for each option.

Boost your earning power with the Funding Circle ISA

The Funding Circle ISA works just like your Classic account, but the interest you earn is tax-free. This could provide you with a significant boost to your earning power. For example, if a higher rate taxpayer lends £20,000 through the Funding Circle ISA and earns a one-year return of 6%* after fees and bad debt, their post-tax earnings after one year could increase from £674 to £1,128.

If you haven’t yet opened a Funding Circle ISA, you can do so by logging in to your account. Tax rules and relief can change depending on your personal circumstances, and you can find out more about the features and risks of lending through a Funding Circle ISA here.

Recognise bad debt as a normal part of lending

When lending to businesses there will always be some who are unable to repay their loan. This is called bad debt, and we account for it when calculating projected returns. Bad debt is rarely spread out evenly over the course of the loan term, and tends to happen during certain periods of a loan’s lifetime. You can see this from the chart below, which shows the annualised return, after fees and bad debt, earned by an example investor over a five year investment period:

In our example, based on five years of loan performance data, an investor lent £10,000 across all the loans originated through Funding Circle in 2012. Each month, the loan repayments and interest received were lent to new borrowers.

You can see that in this example most bad debt occurred during the period marked as phase 2, but then reduced as loans continued to mature and recoveries arrived. You can read more about how returns can change over time in our blog, but the important thing to remember is that a decrease in your return due to bad debt is an expected part of the lending experience, and will typically stabilise as your loans mature. Remember past performance is not a guarantee of future returns.

Think long-term

A modest regular contribution and a patient approach can have extraordinary results. For example, if you start with £10,000 in your Funding Circle account and set up a standing order for £100 a month, after 30 years you could have an account worth over £140,000**. Find out more about setting up a standing order, or see how your own portfolio could grow over time with this compound interest calculator.

It’s important to remember that as you lend to your own individual portfolio of loans your return may be higher or lower. By lending to businesses your capital is at risk and funds are not covered by the Financial Services Compensation Scheme. Tax rules and relief can change depending on your personal circumstances. 

We hope these tips help you get the most out of lending to businesses through Funding Circle. If you have any questions about your account, please get in touch.

Enjoy lending,

The Funding Circle team

*The projected return for the Balanced lending option is 4.5-6.5%, after fees and bad debts, but before tax. Your actual return may be higher or lower. See the full calculation here.

**Based on earning 5.5% per year. Returns are compounded monthly and are after fees and bad debt but before tax. Based on this, an account worth £10,000 with a standing order of £100 a month would be worth £143,653.81. Returns are calculated using a compound interest calculator.  

Your January Review – Insight and Analysis

YourJanuaryReview

In 2017, we helped over 10,000 UK businesses borrow over £1 billion. This year we want to do even better, helping businesses and investors achieve their goals, create new jobs and drive the economy forward. Here’s to a great 2018! Dive in below for your December review.

DecemberLendingFigures

Last month, you and other investors helped over 1,400 UK businesses take new opportunities and reach their goals — thank you for your continued support!

LendingFigures

December highlight: Small business infographic

Did you know there were more than 30,000 street sellers in London in the late 1800s? Was this the start of small businesses as we know them? In case you missed it, take a tour through small business past, present and future in our shiny new infographic.

MonthyTrends

These graphs show the most recent activity on our platform.

You’ve helped more than 9,300 small businesses access finance in the last 6 months…

Volume

Totalling over £630 million lent

Value

December 2017 sector breakdown

Amount lent to each sector

Sector

December 2017 regional breakdown

Amount lent to each UK region

Region

LoansDefaulted

As part of lending to businesses, a small percentage will not be able to fully repay their loan. This is known as bad debt and is a normal part of business lending. We believe diversification, where you lend no more than 1% of your total to each business, is the best way to reduce the impact this has on your return. Our automatic lending tool will help you diversify by splitting your investment across lots of businesses. We suggest lending £2,000 or more, so you can lend to at least 100 businesses, with no more than 1% going to each one.  

Each week, we publish a list of the loans being defaulted on the Customer support section of our website under ‘Announcements.’ To see a breakdown of the loans defaulted last week simply click on loans defaulted 4th January 2018  For further information on why Funding Circle defaults loans you can read our FAQ here.

Collections

HowItWorks

You can also read more about how our collections and recoveries process works (part one and part two) on our blog.

Up next in January we’ll be looking at the impact your lending is having on the UK economy and bringing to life some of the businesses you’ve helped access finance.

As always, if you have any questions or comments our dedicated team are here to help. And if you have any further suggestions we’d love to hear them.

Enjoy lending, the Funding Circle team

*Data from CEBR report

This blog is a general summary, and should not replace financial advice tailored to your specific circumstances. Funding Circle is not authorised to, and does not, provide investment, tax, legal or regulatory advice. If you have any questions, please speak to your professional advisor or seek independent specialist advice.

 

December’s Lending Impact and Borrower Stories

DecemberLendingImpact

In this month’s Lending Impact, we look into the past, present and future of small businesses in a Funding Circle Christmas Carol. There’s also our latest case study, where you can meet the founder of The Creative Whisky Company, and finally discover six Funding Circle businesses that will help you get in the festive spirit this year.

ChristmasCarol

Whatever the season, small businesses work harder on any given day than Mr Claus on Christmas Eve. To celebrate their hard work and determination, we’ve created our very own Christmas Carol, looking at the past, present and future of small businesses. We begin with the small business past, looking at the history of small businesses, and how they adapted during the industrial revolution. Next up, dive into the small business present and learn about the impact they have on today’s world and the trends that have helped them along the way. Finally, discover what the landscape might look like for businesses in years to come in our small business future.

DecemberSuccessStory
CreativeWhisky

In our latest case study video, meet David, founder of The Creative Whisky Company. The business was set up in 2005, bottling 15 casks of whisky a year, and today bottles seven times that amount. Although the business has grown significantly, one tradition remains the same; every whisky is “nosed and tasted” by David and his business partner to make sure it’s up to scratch.

A modern Christmas: festive experiences to enjoy this year

Local businesses are moving faster than Rudolph and Blitzen to help you make the most of the festive season. From the butchers and florists, to the bakers and wine merchants, these business owners know exactly what you need to have a joyful Christmas this year. Read more here.

November’s Lending Impact and Borrower Stories

In case you missed it, here’s last month’s post. We met Amy, the Director of The Strings Club, discovered the most read article by our business and community and listed five Funding Circle borrowers to prepare you for the Ashes.

Up next

At the beginning of January, we’ll publish our Insights and Analysis blog to review December’s activity, including statistics from across the platform and helpful tips to make the most of your investment.

As always, if you have any questions or comments our dedicated team are here to help. And if you have any further suggestions we’d love to hear them.

Enjoy lending, the Funding Circle team

A Christmas Carol – Small Business Future

It’s the week before Christmas, and while Santa and Rudolph are taking all the headlines, we’re celebrating the amazing work small businesses do all year round. In our Christmas Carol so far we’ve looked at small business past and present, now for the final chapter we’re looking at the future. Read on to find out what the landscape might look like for businesses in the years to come.

The return of the masters

Large corporate players have come to dominate the retail market over the last century. However, as they strive to be unbeatable on choice and price, by having such a vast offering they can’t compete on specialist knowledge.

small business future

Consequently, small retailers and manufacturers with local knowledge or specialist offerings are making a comeback. Modern consumers are increasingly hungry for information about their products. They want bespoke, locally produced and sustainable goods. They want to know it’s well made and ethically sourced. As a result, they’re seeking out the specialist knowledge of smaller, independent retailers. Entrepreneurs that can show off their credentials are rewarded with repeat business and growing word of mouth, and carve out a niche where large retailers struggle to compete.

Technology that grows with your business

Not too long ago, having powerful data programmes was the reserve of only the largest firms. They required serious investments of time, capital and staff, and gave the big players a competitive advantage that was out of reach to small businesses.

small business future

 

Now that landscape is changing rapidly. SaaS companies (Software as a Service) and other platforms are democratizing big data capabilities, opening them up to everyone. A small business can take a basic price plan with a limited feature set, then steadily add more options as they grow. They provide enterprise standard infrastructure at an accessible cost. Businesses can then enter new markets and compete on a local, national and international level. As more platforms emerge, small businesses will have fewer limitations and can grow faster than ever before.

Building global brands

Alongside the changes to internal business systems, social media and digital marketing are creating new opportunities to reach customers. Free to set up and simple to use, social media allows small businesses to reach a global audience. Once a luxury for those with big budgets, they can now build brand awareness campaigns to grow their reputation. With a variety of social channels that appeal to different audiences, social media will be an essential tool for long-term growth and short-term sales.

small business future

Businesses can use hashtags and trending topics to reach new customers interested in their field. They can also keep existing customers engaged so they keep coming back. Millennials want to feel informed and involved, not marketed to. So, whether it’s sharing your latest product on Instagram or announcing a limited offer on Twitter, engaging customers through social media will help small businesses thrive.

Alternative finance goes mainstream

Already worth £6.12 billion in the UK alone, the “alternative finance” industry is helping more businesses get the funds they need to grow. Crowdfunding is helping businesses get off the ground, while online lending platforms are giving them the finance to grow.

These new funding streams give businesses access to capital at the point they need it. Whereas banks can be slow to respond, online lending platforms can process applications in just days. This allows businesses to respond quickly to changing demands or new opportunities, making them more resilient.

small business future

In 2017, nearly as much net lending was done to small businesses through Funding Circle alone than the major high street banks combined. As the growth of the sector continues, small businesses will have access to faster, more reliable funding to pursue their ambitions.

AI and bots will fill the gaps

Artificial intelligence (AI) is a computer’s ability to think for itself. It uses information given previously to make decisions, imitating our own ‘human’ cognitive functions. Machine learning is an application of AI that enables computers to learn for themselves as they receive more information.

Why is this important? Typically at small businesses, there are a small number of staff performing lots of different roles. Everyone has to wear multiple hats to get everything done. However, if machines can imitate human thinking, they can start handling some of those business functions, freeing up time and resource.

small business future

In the near future an online chatbot could handle all your customer service queries. Open up your normal messenger apps like Whatsapp or Facebook and it could take orders and recommend products. It could even forward documents and even give installation tips. Many will still want to provide a personal service, but AI can help fill the gaps and compliment their existing service.

As discussed in our look at Small Business Present, it’s an exciting time to be an entrepreneur. With consumer habits evolving and technology creating new avenues in marketing, funding and systems, the future of small businesses is packed with opportunities.

Check out the rest of our small business Christmas Carol

Read the first part on the history of small businesses, and our look at the life and impact of small businesses today.

 

A Christmas Carol – Small Business Present

Businesses across the country work hard all year round. To celebrate their devotion and their contribution to the economy, this festive season we’re presenting our very own Christmas Carol. Last week we looked at the history of small businesses, from medieval times to the early 1900s. Today it’s time for small business present, so read on to learn about the impact they have on today’s world and the trends that have helped them along the way.

Big business booms in the 1960s

Before we get to the modern day, it’s useful to look back over the last few decades to understand the changes that led us here. In the 1960s, small businesses were struggling. Television and globalisation were having a huge impact on the world, and big business was booming.

small business present

Piccadilly Circus at night circa 1960 – David Howard

Shoppers wanted to go to big supermarkets and buy the globally recognised brands they saw on TV. Local shops and independent producers struggled to compete, and their market share dropped dramatically. In everything from farms to finance, large corporate players bought out their smaller rivals, and manufacturing jobs were taken abroad for cheaper labour. Coupled with a thriving stock market and a flourishing electronics and information industry, more and more people moved from manual work to office-based roles.

Such was the preference for big business, even the term “small business” saw a decline. Business owners across the western world faced a squeeze, and starting your own enterprise was an increasingly rare thing to do.

small business present

This graph shows the use of “Small business” in English books over time

Entrepreneurs start their comeback

A career-minded office worker in the 1970s planned to become an increasingly important fish in a big corporate pond. However, as the 1980s progressed, entrepreneurs began to break out on their own once more. While some business owners desired independence and others were laid off, collectively there was a cultural shift away from corporate life, and entrepreneurship was a common aspiration once more.

Technology creates new opportunities

The 1990s saw the widespread adoption of home computing and the internet. Not only did this make it easier to run a business from your own home, entrepreneurs could access a global market at the touch of a button. By drastically reducing overheads, it lowered the barriers to entry for newcomers. Established businesses could now also compete on a more even footing.

small business present

Hewlett-Packard HP9000 Unix Workstation – Thomas Schanz

Adapting to a new world order

An advantage small businesses have always had is their adaptability. Without hierarchy and extensive processes, they are more nimble in responding to a changing marketplace. Employees also have more varied roles and skill sets, as they have to carry out multiple business functions with a smaller staff base. As the pace of change continues to accelerate through the digital age, savvy entrepreneurs can seize opportunities quickly. Large corporate firms, on the other hand, can be cumbersome to respond.

Faith in institutions, whether they are government, media, NGOs or corporations, is also at an all time low. The volume of opinion available today means they no longer hold the sway they once did, and scandal after scandal across every industry has destroyed the trust people once had.

Now customers are looking for alternatives. What they crave most is authenticity, and small businesses are ideally placed to step in. Whether they’re an IT provider or an artisan bakery, small businesses tend to be specialists. They have a natural authenticity as experts in their chosen field, allowing them to engage with their audience more genuinely. They can then appeal to a slice of the market that large companies will struggle to reach.

small business present

David from The Creative Whisky Company – a Funding Circle borrower

A golden age for entrepreneurs

These cultural and technological trends have led to an unprecedented boom for small businesses. Today there are 5.6 million businesses in the UK, an increase of 2.2 million since 2000, and up from just 700,000 a few decades ago. 99% of them are small businesses, showing the incredible impact they have on our economy:

  • Small businesses employ 16.3 million, 60% of private sector employment
  • Their combined turnover is £2 trillion, 52% of private sector turnover
  • 75% are sole proprietors

84% of people who work for themselves are “more satisfied in their working lives”. Less than 5% of owners plan to close their business down and move back to a more traditional job.

Along with the new opportunities in digital marketing and management, new sources of funding are helping small businesses thrive. Online lending and crowdfunding give entrepreneurs better access to the funding they need. This not only helps them get started, but allows them to grow and become more resilient to changing economic times.

Added together, it truly is a golden age for entrepreneurs and small business. Long may it continue.

Check out the rest of our Small Business Christmas Carol

Read our first chapter on the history of small businesses, then complete the journey with Small Business Future, looking at the trends shaping their future.

 

Refining your lending experience

At Funding Circle, our aim is for you to earn attractive, stable returns by lending directly to creditworthy businesses. To help you achieve this, we wanted to let you know about an update we are making to how we set interest rates for businesses. We’re also introducing a small change to how the projected returns displayed for our Balanced and Conservative lending options are calculated.

Providing borrowers with a more tailored experience  

The interest rate paid by businesses currently depends on two factors; the length of their loan and the risk band assigned to them following our robust assessment process. This means businesses are only offered one of six different interest rates depending on their assigned risk band. In order to provide businesses with a more personalised experience, next year we will begin to increase the range of interest rates we set for borrowers within each risk band.

This change will have no impact on the projected returns you can earn through our Balanced and Conservative lending options, or the estimated bad debt rates for each risk band. We will let you know if these projected returns change via the Lending Settings page of your account.

Refining how we display projected returns

Currently, the projected return shown for either the Balanced or Conservative lending options is the median estimated return, after fees and bad debts but before tax, across all investors using that option. As you lend to your own individual portfolio of loans your own personal estimated return (found on your Summary page) may be higher or lower.

The median shows the lowest projected return that 50% of investors can expect to earn by lending through that option. We want more investors to experience a higher personal estimated return than the overall projected return, so we are refining the calculation. It will now show the lowest projected return that 65% of investors can expect to earn by lending through that option.

The two illustrative charts above demonstrate this, by showing the distribution of projected returns for an example group of investors using the Balanced lending option. The green shaded area shows the percentage of investors in the group whose personal estimated return is equal to or higher than the displayed projected return.

Following this update, and taking into account the current mix of risk bands we expect to be funded on the platform, the projected annual returns after fees and bad debt, but before tax for both lending options will be displayed as:

  • Balanced – 7.2%
  • Conservative – 4.8%

It’s important to note that this change has no effect on your personal estimated return, the businesses you lend to or the estimated bad debt rates we expect investors to experience. You can see the full calculation here.

Remember, by lending to businesses your capital is at risk and your actual return may be higher or lower. If you would like to discuss these changes further please get in touch.

Enjoy lending,

The Funding Circle team

ISAs, Brexit, and the 2017 Budget. November industry news

Fintechs take market share from the dominant high-street banks – Financial Times

In the third quarter of this year, net lending (that’s total lending minus repayments) to small businesses through Funding Circle was higher than the entire UK banking system for the first time.* During that time, over 1,700 British businesses were able to access the finance they need to grow and thrive. This is a great demonstration of the positive impact your lending is having on the economy. Together, we’re helping businesses reach their full potential and go even further.

UK peer-to-peer lenders plan to raise millions from ISAs – Financial Times

We’re really pleased to announce that we have started rolling out our Funding Circle ISA product to existing investors. With the Funding Circle ISA, you’ll be able to earn attractive, stable returns tax-free, while supporting the backbone of the UK economy. It also takes just minutes to set up your account. You can find out more about the ISA account, and register your interest if you are not currently lending through Funding Circle, here. More information can also be found in our FAQs, and blog. If you have any questions please get in touch. Remember, by lending to businesses your capital is at risk.

What fax machines and floppy disks reveal about Britain’s productivity problem – The Economist

During the 20th century, productivity growth in the UK increased steadily, but in the past decade, it’s barely budged. Today, many tech companies are trying to change this by using technology, such as machine-learning and AI, which helps to speed up tasks and increase efficiency. By embracing the growing digital economy and saying goodbye to fax machines and floppy disks, businesses have the power to shake off this productivity standstill and encourage faster growth across the country.  

Budget 2017: Business jury give a thumbs up for helping hand for small firms – The Times

It’s clear that our British small businesses have a key role to play in helping to solve the productivity problem as well. If more small businesses are given the right financial support in order to invest in these new technologies, it would help them maximise their output and effectiveness. Additionally, news in the Budget that the Chancellor will bring forward the switch in business rates indexation from the retail prices index to the consumer prices index is welcome. This and the freezing of the VAT threshold at £85,000 for the next two years is a step in the right direction.

Funding Circle borrowers back joining European Free Trade Agreement post-Brexit – P2P Finance News

The Budget also revealed that a further £3 billion is being set aside for Brexit planning. As the negotiations continue, we asked thousands of small business owners for their views. More than half (57%) of business owners in the UK are supportive of joining the European Free Trade Agreement – or the ‘Norway Option’. It’s evident that this route is a priority within the business community and it’s important that we listen to ensure we achieve the best possible outcome for their success. Check out our blog for the full results and read more in the Financial Times.

London’s startups stress out over Brexit—and ping pong – Bloomberg

Ping pong, the national sport of FinTech, brings together tech companies from all across London for a night of excitement, nail biting action and of course, pure glory for the winner. Not only is the event good fun, helping to build strong company morale, it also highlights the importance of access to talent post-Brexit for FinTech firms with many of the competitors coming from all over the world. At Funding Circle, 30% of our teams are non-UK European nationals, so we were pleased the government provided certainty to EU citizens living in the UK last week.

* Data taken from Bank of England ‘Bankstats (Monetary & Financial Statistics)’ – Table A8.1 ‘Monetary financial institutions’ loans to non-financial businesses, by size of business’ under ‘Net loans (exc overdrafts). Bank of England banks account for at least 75% of the lending market.

A Modern Christmas: Festive experiences to enjoy this year

Don’t be a scrooge this Christmas! Local businesses are working harder than Santa Claus and his elves to make sure you make the most of the festive season. From the butchers and the florists, to the bakers and wine merchants, the business owners below know exactly what you need to have jolly and joyful Christmas experiences this year.  

Oh Christmas tree, oh Christmas tree!

No one knows the exact year that the first Christmas tree was brought into someone’s home, but it is estimated to be around 1510 AD – and the tradition carries on today in many countries across the world. Wreaths have also grown in popularity and decorating them can make for a festive and fun activity. Dried oranges, cranberries, ribbon and pinecones are just a handful of the items you can use. Pick yours up from Rocket Gardens, a DIY gardening company in Cornwall, who even supply handmade edible wreaths made from bay leaves, rosemary and chillies! Rocket Gardens were able to scale up their business after borrowing across three loans since July 2016.

Let it snow, let it snow, let it snow…

If you’re keen to get out of England and have a proper adventure this year, then you’re in luck! Incredible ski locations are just a short flight away, in countries such as Austria, Norway and France. Snowflakes falling, picturesque chalets, brightly decorated streets… Whether you’re here for the kids or on a nice getaway with friends, being in the mountains is the perfect festive break. Need the gear? Finches Emporium, a family-run sports store, will have everything you need to make sure you’re prepared for your snowy getaway. To support an advertising campaign, the Finches team borrowed through Funding Circle in May 2014.

Ho! Ho! Ho!

Are you with the little ones this year? Then we suggest going to wander through a magical winter wonderland on your way to visit Santa’s Grotto at Bellflower Garden Centre, based in the heart of Suffolk. His elves have been working hard over the past few weeks getting everything ready to make sure it’s a truly special experience for everyone. In order to renovate some parts of the premises and purchase a new van for deliveries, Bellflower Garden Centre borrowed finance from 218 Funding Circle investors in November 2017.

All I want for Christmas is mulled wine

What better way to relax after a hearty meal than to have a nice warming cup of mulled wine? We’re not talking about the bottled stuff either… the best way to enjoy it is to make your own. All you need is a nice bottle of red, sugar, a cinnamon stick, nutmeg and a fresh orange – easy peasy. For a great selection of wines, check out Talking Wines, based in Cirencester, who source outstanding wines from passionate producers across the world. In order to increase stock, Talking Wines borrowed through Funding Circle in July 2013. Festive tip: make sure to have the Christmas tunes turned up and a cosy fire lit to create a truly joyful atmosphere.

Sugarplums and sweets

Since we’ve already got you in the kitchen, why not whip up some homemade gingerbread men as well? Making these gingery treats is the perfect activity to share with the whole family. They’re easy to make, have minimal ingredients and taste just like Christmas! We all know that a gingerbread man isn’t complete without gumdrop buttons, so before you get started, take a trip to Fanny Adams Sweet Shop in Kingswinford and you’ll find just what you need and more. To help open a new shop and hire more staff, the fantastic sweets shop borrowed through Funding Circle in December last year.

Happiness and all the trimmings

And finally, one of the finest holiday traditions has to be enjoying a delicious dinner in the company of all of your loved ones. Can this meal be complete without turkey? We don’t think so. Allington Farm Shop, a family-run farm shop and café based in Wiltshire, sells locally sourced and free range turkeys that are sure to be a winner with your guests. But don’t forget to prepare some mashed potatoes, seasonal garden veg, bread pudding and cranberry sauce before you dig in! To help expand their butchery, Allington Farm Shop borrowed from 618 investors in May 2014.

A Christmas Carol – Small Business Past

Whatever the season, small businesses work harder on any given day than Mr Claus on Christmas Eve. Santa may take all the glory, but it’s the determined businesses around the country that deserve the real recognition.

To celebrate the work they do, we’re presenting our very own Christmas Carol, looking at small business past, present and future over the next few weeks. First up, we look at the history of small businesses, learning what life was like for entrepreneurs up until the early 20th century.

Before the industrial revolution, all business was small business

In medieval times, businesses were small operations working mostly in local economies. Farmers sold grain to merchants for sale at local markets, while a single blacksmith would serve the needs of the surrounding area. They were typically single-man or family operations, working for themselves without employees.

Small businesses began forming guilds

To meet the pressure of increasing competition, skilled craftsmen banded together to form guilds. The guild marked a sign of quality, and would often be associated with a particular town or city. They also acted as early unions, scheduling ‘no-work feast days’.

The rise of big business

During the industrial revolution, new technologies such as steam power allowed large factories to greatly increase production. Due to economies of scale the lone blacksmith could no longer compete, and big business grew to dominate. Coupled with international shipping, electric motors and gasoline, the landscape quickly changed forever.

It was only with this rise of ‘big business’ that the term ‘small business’ became common, as it was needed to compare the two. The below graph shows the use of the term ‘small business’ in English books.

Use of “small business” in English books

small business past

Small businesses adapt to changing times

While wealthy industrialists were riding high, smaller entrepreneurs also took advantage of new opportunities from a rapidly expanding economy. The manufacturing boom and imports from around the empire meant a wealth of new products on offer, providing new opportunities for shopkeepers and merchants. This increase in trade and industry then required servicing by transport, banks, clerks and insurers.

small business past

A Victorian business card

Towns and cities also grew rapidly as people flooded there for work. Infrastructure was needed to support this expansion, creating work in everything from building houses to selling milk. The growth meant more schools, doctors, lawyers, shops, pubs and much more. If you were a savvy entrepreneur, there was a small business waiting for you.

However, while the economy grew, it was still a very precarious place for a small business owner. Income was modest and access to credit was limited, leaving them vulnerable to competition and difficult periods of trade. Reputation and contacts were still a major factor in business arrangements, and working class businessmen trying to elevate themselves to the middle class were more susceptible to hard times.

small business past

Street sellers thrive

Known as costermongers, street sellers had a particular set of reliable wares that they sold from a barrow or donkey-cart. It could be anything from oysters and hot eels to crumpets, candles, books or live birds. There was an estimated 30,000 costermongers in London during the late 1800s, and most middle and working class households depended on them.

A street-seller locksmith

Victorian shops

Early Victorians didn’t put prices on their goods. Not only did this allow for haggling, but meant they could set a higher price for customers who looked more affluent.

Goods were also kept in drawers, cupboards or cases and could only be touched by the shopkeeper. In a shoe shop for example, you would only be able to see closed boxes. Rather than browse, you would describe what you needed shoes for and the clerk would select some for you try on.

As time went by, more shop owners began trying to make extra sales with displays of goods on counters with the prices noted. Window displays then followed, with shops installing plate glass fronts to attract customers as they walked by. Stores got larger, and “shop walkers” were employed that were half security guard and half shop assistant.

small business past

A Victorian shop front

Shops were unique, with different suppliers and product ranges. To prevent men walking into an embarrassing situation, women’s clothes were kept on the 2nd floor. Some sold counterfeit goods, while others marked products as “smuggled and stolen” to make them more desirable. As a result, shoppers would go back to vendors they trusted, and manufacturers began prepackaging goods to ensure quality and weight.

Services to the home in 1900

It was commonplace for small businesses to bring their goods or services to customers’ homes. Bakers delivered daily, while milk was delivered and measured out at the door, often twice a day. You’d then make payment for the week on Saturdays.

Others goods such as coal were delivered too. After ordering at the coal yard, your selected grade of coke for the boiler and coal for the fire was brought and deposited in a bunker outside. You would address tradesmen by the product they carried – “Coalman, Milkman, Dustman” and so on.

Insurance was also collected door-to-door. Life insurance was most popular as it was a terrible stigma not to be able to afford a funeral. A company agent would collect each month and log the payment in his book. They’d try to upsell them to contents insurance, or house insurance if they owned their home.

Check out the rest of our Christmas Carol

Continue the journey with Small Business Present – a look at their place in the modern world and the trends that led them there. And finally, in Small Business Future we look at tech and cultural trends that will shape business life in the years to come.

 

How to have a terrifically traditional Christmas

Whether it’s December or June, small businesses are working harder than Santa’s elves all year round. To celebrate their achievements, we’re presenting our very own Christmas Carol, looking at the past, present and future of small businesses.

We kicked off with a Small Business Past, looking at the life of an entrepreneur up to the early 1900s. In today’s piece, we’ve got four fantastic Funding Circle borrowers to help you have a traditional Christmas, so you can celebrate like it’s 1900. They’ve all been able to take their business forward thanks to your lending.

traditional christmas

Sit by a roaring fire

Nothing is more cosy at Christmas time then nestling up by a roaring fire. If you want to give your front room the traditional touch, Aberdeen Fireplace Ltd can help you out. You can find traditional coal or wood burning stoves, as well as grates, ash pans and other accessories. You can also get a gas or electric number if you’d like a more modern feel. To upgrade their premises, they borrowed £27,000 in May 2014.

Get a goose for the family

Victorian families would traditionally have goose or roast beef on Christmas Day. Affluent households then began having turkey, which developed into the staple we enjoy today. Whether you’re entertaining a big group or there’s only a few of you this Christmas, The Wild Meat Company in Suffolk have an excellent range of products for you to serve from local farms. The meat specialist borrowed over £40,000 in September to finance a new labelling and scanning system to package their products. Just make sure you order before Sunday 10 December 2017!

traditional christmas

Eat by candlelight

Without electric lighting, families depended on candles to light their homes. Why not give your table a more atmospheric touch this year with a selection of candles from Northumbrian Candleworks. They have a range of candles and scents to suit any tastes, although probably best to stick to the house lights for cooking! Northumbrian Candleworks borrowed £5,300 in July 2017.

traditional christmas

Indulge in a proper Christmas pudding

Although there is some debate, recipes for the Christmas pudding go back to the 17th century. Enjoyed by royals and working folk alike, its popularity led it to become a symbol of unity across the British Empire. To get your perfect pud, head to Georgie Porgie’s Puddings, an award-winning pudding shop in Devon. From sponges to seasonal specials, everything is handmade with local ingredients. Georgie Porgie borrowed £46,350 in May 2017 to expand their premises and improve business year round.

 

Your December Review – Insight and Analysis

Your December Review

Your lending has reached £3 billion in the UK! November was also a record month, with £129 million lent to small businesses in the UK.

While it’s fantastic to keep growing, the important story is the impact we can have on the economy. That’s why we’re very excited to say that in Q3 this year, for the first time more net lending (total lending minus repayments) was done through Funding Circle to small businesses in the UK than the UK’s major high-street banks combined*. Thanks to your support, we can continue to have a positive impact on the economy, helping thousands of businesses expand and achieve their ambitions.

November Lending Figures

Last month, you and other investors helped businesses to take new opportunities, create new jobs and drive energy into the UK economy. Thank you for your continued support!

November Block

November highlights: launching the Made to do More campaign

At Funding Circle we celebrate the big thinkers and those who decide to get up to tackle something new. Over half of Brits (56%) think they have the skills to run their own business, but only 13% believe they’re entrepreneurial. If everyone believed they were Made to do More, we could boost the economy and ignite even more opportunities. Head to our blog to find out more about our most recent campaign.

MonthlyTrends

These graphs show the most recent activity on our platform.

You’ve helped more than 9,300 small businesses access finance in the last 6 months…

 

Volume

Totalling over £650 million lent

Value

November 2017 sector breakdown

Amount lent to each sector

Sector

November 2017 regional breakdown

Amount lent to each UK region

Region

LoansDefaulted

As part of lending to businesses, a small percentage will not be able to fully repay their loan. This is known as bad debt and is a normal part of business lending. We believe diversification, where you lend no more than 1% of your total to each business, is the best way to reduce the impact this has on your return. Our automatic lending tool will help you diversify by splitting your investment across lots of businesses. We recommend lending £2,000 or more, so you can lend to 100+ businesses, with no more than 1% going to each one.  

Each week, we publish a list of the loans being defaulted on the Customer support section of our website under ‘Announcements.’ To see a breakdown of the loans defaulted last week simply click on loans defaulted 30th November 2017.  For further information on why Funding Circle defaults loans you can read our FAQ here.

Collections

HowItWorks

You can also read more about how our collections and recoveries process works (part one and part two) on our blog.

Up next in December we’ll be looking at the impact your lending is having on the UK economy and bringing to life some of the businesses you’ve helped access finance.

As always, if you have any questions or comments our dedicated team are here to help. And if you have any further suggestions we’d love to hear them.

Enjoy lending, the Funding Circle team

*Bank of England data

**Data from CEBR report

This blog is a general summary, and should not replace financial advice tailored to your specific circumstances. Funding Circle is not authorised to, and does not, provide investment, tax, legal or regulatory advice. If you have any questions, please speak to your professional advisor or seek independent specialist advice.

The Funding Circle ISA is on its way!

We’re excited to announce that from Thursday 30th November we will start rolling out the ISA account to all current investors. This means soon you will be able to earn attractive, stable returns tax-free.

How will the ISA account work?

The Funding Circle ISA will work just like your existing Funding Circle account, while also providing you with:

  • A boost to your earning power – the interest you earn with an ISA is tax-free. As an example, if a higher rate taxpayer lends £20,000 through the Funding Circle ISA and earns a one-year return of 7.5* after fees and bad debt, their post-tax earnings after one year could increase from £900 to £1,500.
  • Flexibility the ISA account is a flexi-ISA. This means you can withdraw any available funds without affecting your annual £20,000 ISA subscription limit, providing you transfer them back in by the end of the tax year.

     

  • A simple investment experiencecreating an ISA account takes just a few minutes, and can be opened from your existing Funding Circle account using the same login details. Once opened, choose one of our two lending options and start lending.

     

  • An easy way to build a well-diversified portfoliowe recommend lending £2,000 or more, so you can spread your funds across at least 100 businesses for a more stable return. If you would like to start with less, we are introducing an initial minimum card transfer of £1,000 when opening an ISA account or a new Classic account.   

     

  • No fees to access your money – as with your existing Funding Circle account there are no fees for selling your loans

     

As part of this process we’re also renaming existing Funding Circle accounts as the Classic account. Remember, by lending to businesses your capital is at risk, while tax rules and relief can change depending on your personal circumstances.

Providing every investor with the best possible lending experience

Based on the conversations we have had with investors, we expect the ISA to be popular. To manage this interest in the fairest way, and to ensure there are enough lending opportunities on the platform for all investors to continue earning attractive, stable returns, we will be opening up the ISA Account to all current investors (those who created an account before 23rd November) in the following order:

  • Investors who are actively lending (have lent to a business since 1st May 2017)
  • Investors not actively lending but who have previously transferred in funds
  • Investors who have not previously transferred in funds
  • New investors and those who have opened a Classic account after 23rd November 2017

We will open the ISA to each group of investors in the order their account was created. We will keep you updated on our progress over the next few months.

We’ll email you when your ISA is ready to be opened

Once you’ve received your email confirming you can now open your ISA, you’ll be able to login to your account through our website and create an ISA account in a few easy steps, subject to eligibility criteria:

To help manage demand, initially you won’t be able to transfer any existing ISA subscriptions you hold to your ISA account. You will be able to transfer your Funding Circle ISA to another ISA provider, although it’s important to remember that loan parts that can’t be sold won’t be transferred and will no longer be eligible for tax-free interest.

Once all current investors have had an opportunity to create an account, we will launch the ISA to new investors. Following this, we will start to rollout the ability for you to transfer in existing ISA subscriptions.

Although you can manage both an ISA account and a Classic account using the same login, it’s important to remember they are separate accounts that will lend to a separate portfolio of loans.

Transferring loan parts from your Classic account to your ISA account

Due to regulatory restrictions, you are unable to transfer loan parts directly from your Classic account to your ISA account. However you can sell your loans quickly and easily to other investors, providing they aren’t late or experiencing any credit issues, before withdrawing your funds to a UK bank account and then transferring them to your ISA.

We’re pleased to be able to provide you for the first time with attractive, stable returns tax-free. You can find out more about the ISA account, and register your interest if you are not currently lending through Funding Circle, here. More information can also be found in our FAQs. If you have any questions please get in touch.

Enjoy lending,

The Funding Circle team

*The projected return is an estimate of the annual return, after fees and bad debts, that a diversified investor could earn by lending through the Balanced lending option as of 23rd November, 2017. You can see how the return is calculated here. Your actual return may be higher or lower, and by lending to businesses your capital is at risk.

November’s Lending Impact and Borrower Stories

.NovemberInvestorImpact

In this month’s Lending Impact, watch our latest case study video of The Strings Club, check out the article most read by our business community, and find out how you can prepare for The Ashes with five Funding Circle borrowers.

ThisMonthsTopArticle

Do you work harder than Mark Zuckerberg?

Consider yourself a hard worker? Find out how your working week stacks up against the likes of teachers, pilots, professional footballers, small business owners and corporate CEOs in our blog.

NovemberSuccessStory
StringsClub

In our latest case study video, meet Amy, Director of The Strings Club. In 2012, Amy set up the business with one simple mission: to educate and inspire children through music. Watch the video to find out how your lending has helped Amy grow and develop her business, which is now an award-winning musical education group for children aged 4-11. 

Watch The Ashes like a true Lady or Gentleman

With the start of one of sport’s greatest rivalries this Thursday, we’ve put together a list of five businesses that will help you celebrate The Ashes in a true English manner. All of these businesses were able to expand and develop thanks to your lending. Dive in here.

October’s Lending Impact and Borrower Stories

In case you missed it, here’s last month’s post, where we met Tom & Sian, the Founders of Bobbin Bikes, and listed our top five essentials to prepare for Bonfire Night.

Up next

At the beginning of December we’ll publish our Insights and Analysis blog to review November’s activity. This will  include statistics from across the platform and helpful tips to make the most of your investment.

As always, if you have any questions or comments our dedicated team are here to help. And if you have any further suggestions we’d love to hear them.

Enjoy lending, the Funding Circle team

Are you Made to do More?

made to do more

Small business owners have a restless spirit. They have the courage to stand up and go their own way and say “I can do this”. We’re here to help them go further, and we want to support everyone who has that vision. Over half of Brits (56%) think they have the skills to run their own business, but only 13% believe they’re entrepreneurial. If everyone really believed they were Made to do More, we could boost the economy and ignite even more opportunities.

Time to believe

We want to celebrate the big thinkers and the tenacious workers, the people who get up and decide to tackle something new, to give them the belief to take that leap and go their own way.

By realising your own unique attributes and perspective you’ll find the seeds for your future success. If you don’t see yourself as an entrepreneur, you’re in good company, as only 26% of business owners consider themselves entrepreneurial. You don’t need a vision for an empire, just a spark, an idea, and the belief to see it through.

Life would be boring if we all saw things the same. See how your perspective shapes your potential.

From determination and hard graft to passion and creativity, everyone has unique personality traits which give them the potential to succeed. Do you know what yours are?

Our personality test on Facebook can tell you where your talents lie. It’ll help you decide if you’re more of a Business Creative than a Planner, and understand how you can use your attributes to thrive as a business owner.

Head to our Facebook page to take the test

What do you see?

Look at these images and tell us what you see.

 

Now have a look again – do you see something different? What about your friends, family, colleagues? You’ll be surprised what they say.

 

made to do more

 

Do you see a skull first? If so, you’re a Business Creative. You have an exceptional ability to adapt and react to any business situation. You’re intrinsically motivated to succeed within the workplace and will be at the forefront of how a company develops. Your ideas are ready to take you to the next step.

Or do you see a light bulb? If so, you’re a Big Picture Thinker. You’re reliable and always have a plan in place to get the job done. You solve complex problems by using your instincts to work towards your end goals, and don’t necessarily worry about all the details. No business can truly succeed without this type of thinking.

made to do more

 

Do you see cloth? If so, you’re a Big Picture Thinker. You’re reliable and always have a plan in place to get the job done. You solve complex problems by using your instincts to work towards your end goals, and don’t necessarily worry about all the details. No business can truly succeed without this type of thinking.

Or maybe you see a dog? If so, you’re a ‘Go To’ Person. As everyone’s best friend you’re able to get your colleagues to achieve heights they thought they never could. You’re emotionally intelligent and energetic, so naturally fall into a leadership role.

made to do more

 

Do you see a crocodile? That indicates you’re a Business Creative. You have an exceptional ability to adapt and react to any business situation. You’re intrinsically motivated to succeed within the workplace and will be at the forefront of how a company develops. Your ideas are ready to take you to the next step.

Or do you see an island? If so, that might mean you’re a ‘Go To’ Person. As everyone’s best friend you’re able to get your colleagues to achieve heights they thought they never could. You’re emotionally intelligent and energetic, so naturally fall into a leadership role.

made to do more

 

Does a lynx jump out at you first? If so, you’re likely to be a Big Picture Thinker. You’re reliable and always have a plan in place to get the job done. You solve complex problems by using your instincts to work towards your end goals, and don’t necessarily worry about all the details. No business can truly succeed without this type of thinking.

Or does a bird stand out more? If so, you’re a ‘Go To’ Person. As everyone’s best friend you’re able to get your colleagues to achieve heights they thought they never could. You’re emotionally intelligent and energetic, so naturally fall into a leadership role.

made to do more

 

Do you see a mother? If so, you’re a Big Picture Thinker. You’re reliable and always have a plan in place to get the job done. You solve complex problems by using your instincts to work towards your end goals, and don’t necessarily worry about all the details. No business can truly succeed without this type of thinking.

Or do you see a baby? If so, you’re a ‘Go To’ Person. As everyone’s best friend you’re able to get your colleagues to achieve heights they thought they never could. You’re emotionally intelligent and energetic, so naturally fall into a leadership role.

Looking to expand your business?

More than 30,000 businesses in the UK have accessed finance through Funding Circle. You could boost your cash flow, refurbish premises, hire staff and much more. Check if you qualify for a business loan in just 30 seconds.

Want to lend to businesses across the UK?

Make a return and a difference by supporting small businesses. It’s quick and easy to open your account and build a diversified portfolio. Lend alongside 73,000 investors and support the UK economy by signing up online today. Remember, by lending to businesses your capital is at risk.