171 UK businesses access finance | Weekly Lending Review

Week 21: 16 – 20 May

Last week, you and other investors helped 171 businesses across the UK access £13.8 million through the Funding Circle marketplace. Of the new loans listed, the South East was the most popular business location, and property & construction was the most popular sector.

New loans available to you

There are currently 22 loan requests on the marketplace, and thousands of loan parts available for you to buy which will help you become diversified.

The total value of new loans listed on the Funding Circle marketplace was £11,876,840 averaging at £83,533 per loan. The largest loan value was £527,460 and the smallest loan value was £5,000.

Business loans available to bid on:

Gross interest rates are before fees and estimated bad debts. Your actual return may be higher or lower as by lending to businesses your capital is at risk.

Weekly marketplace trends

These graphs show the most recent activity on the marketplace. The dates on the graph should be read as ‘week beginning’, for example: 16-May represents the week of 16th – 20th May.

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 21-16

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

Number of listed loans per week

Loans listed 21-16

Listed loan value per week

Loan value 21-16

Total amount lent

Amount lent 21-16

Loan parts available to buy from other investors

Loan parts 21-16

Stay with a Funding Circle borrower this bank holiday weekend

Looking to get away this bank holiday weekend? We’ve put together a list of 5 fantastic weekend retreats with Funding Circle borrowers so you can support small businesses while having a great weekend away!

Loans defaulted last week

Manufacturer. Loan 9691. Risk band C

This Kent business has been running since 2006 and was placed into liquidation in May.

Electrical contractor. Loan 10575. Risk band C

This Surrey business was established in 2011 and has become unresponsive after missing repayments.

Stone masonry. Loan 9343. Risk band A

This Glasgow business has been running since 2008 and has become unresponsive after missing repayments.

Engineers. Loan 12635. Risk band D

This West Midlands business was established in 2002 and is 3 months in arrears.

Training specialist. Loan 5063. Risk band A

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

Paint supplier. Loan 6067. Risk band A

This Kent business was established in 2003 and was placed into liquidation in April.

Head hunter. Loan 13303. Risk band C

This Hertfordshire business has been running since 2012 and is in the process of entering liquidation.

Building company. Loan 16162. Risk band B

This Greater Manchester business was established in 1980 and was placed into liquidation in May.

Vehicle accessories supplier. Loan 16400. Risk band C

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

Our collections and recoveries team are working to recover the outstanding amounts for all of the loans described above and they will provide you with updates in the loan comments section on your summary page. Read how our collections and recoveries process works (part one and part two) on our blog.

Enjoy lending, the Funding Circle team

Top 5 Funding Circle Weekend Retreats | Weekly Lending Review

Week 20: 9 – 13 May

Summer is fast approaching and with a bank holiday coming up, it’s a perfect opportunity to take a well deserved long weekend away with friends and family. We’ve put together a list of 5 fantastic weekend retreats with Funding Circle borrowers so you can sit back, relax and enjoy.

New loans available to you

There are currently 45 loan requests on the marketplace, and thousands of loan parts available for you to buy which will help you become diversified.

The total value of new loans listed on the Funding Circle marketplace was £17,703,700 averaging at £83,500 per loan. The largest loan value was £570,560 and the smallest loan value was £5,000.

Business loans available to bid on:

Gross interest rates are before fees and estimated bad debts. Your actual return may be higher or lower as by lending to businesses your capital is at risk.

Weekly marketplace trends

These graphs show the most recent activity on the marketplace. The dates on the graph should be read as ‘week beginning’, for example: 9-May represents the week of 9th – 13th May.

The average gross yield graph is reported weekly and shows a rolling two week average of gross yields. This calculation assumes you reinvest your interest each month and therefore includes the compound interest you earn (The calculation is AGY = (1 + (two week rolling weighted average rate/12))^12 – 1). You can view the latest gross interest rates accepted on the marketplace on our statistics page.

Weekly average gross yield (2 weeks rolling)
WLR 20-16 yield

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

Number of listed loans per week

WLR 20-16 loans listed

Listed loan value per week

WLR 20-16 loan value

Total amount lent

WLR 20-16 amount lent

Loan parts available to buy from other investors

WLR 20-16 loan parts

News you should know

Included in this month’s industry news, Funding Circle CEO Samir discusses Funding Circle’s rapid growth in The Sunday Times and a recent report shows that people are more likely to recommend fintech to their friends than any other traditional provider.

Loans defaulted last week

Off license. Loan 7068. Risk band B

This West Midlands business is 3 months in arrears.

Mini supermarket. Loan 7396. Risk band B

This Shropshire business has been running since 2014 and is 3 months in arrears.

Rock crushing specialist. Loan 9337. Risk band A

This North Yorkshire business was established in 2011 and was placed into liquidation in April.

Bike shop. Loan 16786. Risk band A

This London business has been running since 1992 and was placed into liquidation in May.

Hotel. Loan 2815. Risk band C

This Powys business was established in 2006 and has become unresponsive after missing repayments.

IT specialist. Loan 8714. Risk band C

This Leicestershire business has been running since 2004 and was placed into liquidation in June.

Mailroom equipment supplier. Loan 14478. Risk band A

This Cumbria business was established in 2002 and was placed into liquidation in March.

Shop. Loan 19660. Risk band E

This London business has been running since 2013 and has become unresponsive after missing repayments.

Software developers. Loan 16076. Risk band D

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

Our collections and recoveries team are working to recover the outstanding amounts for all of the loans described above and they will provide you with updates in the loan comments section on your summary page. Read how our collections and recoveries process works (part one and part two) on our blog.

Enjoy lending, the Funding Circle team

 

Stay with a Funding Circle borrower this bank holiday weekend

Summer is fast approaching and with a bank holiday coming up, it’s a perfect opportunity to take a well deserved long weekend away with friends and family.

We have five fantastic Funding Circle borrowers located across some of the most beautiful locations in the UK, so what better time to support small businesses while having a great weekend away!

1. The Crown at Wells

A stone’s throw from Wells Cathedral, this 15th Century coaching inn is based in the heart of the historic city, and was even featured as part of the smash hit comedy Hot Fcrown-at-wellsuzz.

The rustic bistro and bar is named after Quaker William Penn (who gave his name to Pennsylvania USA), as he famously preached to a crowd from an upper window of the inn in 1685. If you are looking for some heritage and history this bank holiday weekend, you will not be disappointed with The Crown at Wells.

To help refurbish the bar, the business borrowed £50,000 from 674 investors.

2. St. Kilda Hotel

With great views of the Irish Sea, St. Kilda Hotel is nestled in the middle of Llandudno’s beautiful promenade, with easy access to all the town has to offer. This family-run business is sure to give you a warm and friendly welcome.

St. Kilda Hotel used their Funding Circle loan to cover maintenance and refurbishment costs, borrowing £30,620 from 322 investors in December 2015.

3. The Oaklands HotelOak-Bar-1

Located just five minutes from Norwich city centre, The Oaklands Hotel is conveniently situated for anyone wishing to explore this charming city. With a bar and terrace, in addition to great local knowledge on offer, you won’t be without things to do!

To complete the refurbishment of the hotel, The Oaklands Hotel borrowed £462,980 over two loans, from 4,683 investors between 2014 and 2016.

4. The White Hart

If you are looking for a more active weekend away, The White Hart offers an ideal place to rest after a day exploring the stunning Lake District. This historic and authentic bed and breakfast is sure to please real ale aficionados, with a well-stocked bar that has featured in CAMRA’s Good Beer Guide.

The White Hart Inn borrowed £30,000 in February 2016 to help provide cash flow.

5. Nethway Hotel030

Set in the beautiful English Riviera, Nethway Hotel is a short walk from both the beach and Torquay town centre. With plenty to do and a picturesque coastline to explore, a weekend away here could be one of your best chances of sunshine this bank holiday weekend.

In order to fully launch a new product onto the market, The Nethway Hotel borrowed £63,160 from Funding Circle in November 2015.

 

Do you want to grow your business? More than 14,000 businesses in the UK have accessed finance through Funding Circle for a range of requirements. You can apply online in less than 10 minutes and check your eligibility in just 30 seconds.

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

Enjoy lending,

The Funding Circle team

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

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

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

Milestone for European P2P securitisation

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

How to topple bureaucracy

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

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

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

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

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

The 40 coolest people in UK fintech

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

3 ways to motivate staff in a small business

15.6 million of the UK’s workforce are employed by small businesses – so without the big budgets and perks of larger companies, how do you motivate your team?

The Total Jobs survey found that 51% of jobseekers believe there’s less opportunity for progression in a small business because of the perceived lack of a traditional progression ladder.

Climbing without a ladder

This kind of thinking is damaging to staff motivation and it’s also unfounded. It’s true that small businesses are unlikely to support traditional progression, but the personal development opportunities they offer are, for many people, much better. Small business employees face a flexible progression path that’s more like a climbing wall than a ladder – employees can forge their own path up, going sideways or diagonally.

It’s your job to be the guide rope on the rock wall: support your employees, suggest ways to progress, and prevent them from falling into demotivation.

Rock climbing

What motivates your team?

Whitney Johnson, author of Dare, Dream, Do, says the most successful businesses are those that recognise that each of their employees carries a secret dream.

Small business owners are well-placed to understand the aspirations of their staff – you probably know your team by name, something near impossible for the CEO of a large company. And your staff are more likely to be invested in the company.

Beech’s Chocolates, a chocolate manufacturer in Preston and Funding Circle borrower, prides themselves on the loyalty of their employees. One member of staff has been with the business for 45 years!

1)  Talk to your employees: what are their goals?

Big corporations have HR departments, but for a small business owner it’s likely to be just you and your employees. One of the best steps you can take is recognising that one-on-one conversations should happen, and being proactive about starting them.

Here are some conversation-starters and prompts for talking to staff about their goals:

– Where do you see yourself in five years?

– What can you do in your current role to help you get there?

– What opportunities are there within the business to help get you there?

2)  Think about how they can achieve their goals

Talking about aspirations shows you care about progression, which in itself can be a huge motivation boost.

Say Tim works for you in sales, but reveals that he studied design at university and wishes he could work in that field. Even if your company doesn’t have the need for a full-time designer, Tim could spend a couple of hours each week working on the website and newsletter design.

Tim hasn’t progressed up – this isn’t a career ladder – but he’s moved sideways and got a foothold in his dream career. He’s taken a step up in career rock climbing. This will make him feel appreciated, supported and engaged, giving him a motivation boost in his sales role. On top of that, the new website design could even attract new customers.

3)  “Train them so they can leave, treat them well so they stay”

This quote from Richard Branson is a great summary of why it pays to invest in staff. Personal development represents an investment, but training can incentivise employees to stick around longer and motivate them to work harder.

Should training matter to small businesses?

For Funding Circle borrower Michelle Partington, who runs Lancashire catering company Lakeland Picnic, investing in staff development is her number one tip for building a successful business. Michelle said, “I’ve put people on college courses and various things like that, I always try to instil that kind of learning philosophy.”

Looking for finance?

If you’re considering training schemes for your team, find out how Funding Circle could help you finance them. Check your eligibility online in 30 seconds for business loans from £5,000. 

Are you helping to build new homes in Liverpool? | Weekly Lending Review

Week 19: 2 – 6 May

Last month, we visited property specialists Forth Homes, who are currently building 17 affordable family homes in Liverpool, thanks to more than 14,000 Funding Circle investors. Take a tour of the properties and meet Director Peter in this short video.

New loans available to you

There are currently 38 loan requests on the marketplace, and thousands of loan parts available for you to buy which will help you become diversified.

The total value of new loans listed on the Funding Circle marketplace was £12,072,840 averaging at £80,356 per loan. The largest loan value was £521,820 and the smallest loan value was £5,000.

Business loans available to bid on:

Gross interest rates are before fees and estimated bad debts. Your actual return may be higher or lower as by lending to businesses your capital is at risk.

Weekly marketplace trends

These graphs show the most recent activity on the marketplace. The dates on the graph should be read as ‘week beginning’, for example: 2-May represents the week of 2nd – 6th May.

The average gross yield graph is reported weekly and shows a rolling two week average of gross yields. This calculation assumes you reinvest your interest each month and therefore includes the compound interest you earn (The calculation is AGY = (1 + (two week rolling weighted average rate/12))^12 – 1). You can view the latest gross interest rates accepted on the marketplace on our statistics page.

Weekly average gross yield (2 weeks rolling)
WLR 19 - yield

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

Number of listed loans per week

WLR 19  loans listed

Listed loan value per week

WLR 16 - loan value

Total amount lent

WLR 19 amount lent

Loan parts available to buy from other investors

WLR 19 loan parts

News you should know

It’s the final week of our spring promotion! To receive one of the fabulous devices listed below increase the amount you lend to businesses by 16th May 2016. Lend an additional:

£30,000+ to get an iPad Air 2*, or

£20,000+ for an iPad mini 2*, or

£10,000+ for a Kindle ereader*

Top tip: to qualify investors must have lent and continue to lend the amount until Monday 16th May.

If you have any questions about this promotion or how you can qualify, please email us and we’ll be happy to help, or read full details about how to qualify.

Loans defaulted last week

Solicitors. Loan 15363. Risk band A

This County Durham business was established 2006 and has proposed a Partnership Voluntary Arrangement.

Engineers. Loan 11374. Risk band A

This Merseyside business has been running since 1983 and was placed into liquidation in March 2016.

Book specialist. Loan 14512. Risk band B

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

Polymer manufacturer. Loan 2425. Risk band B

This Cheshire business has been running since 1994 and has proposed a payment plan.

Dairy farmer. Loan 13880. Risk band E

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

Coach hire. Loan 5430. Risk band B

This North Lanarkshire business has been running since 2012 and is three months in arrears.

Fireplace supplier. Loan 2430. Risk band C

This Surrey business was established in 2005 and has proposed a payment plan.

Mortgage broker. Loan 13462. Risk band A

This Cumbria business has been running since 1998 and has ceased trading.

Telecommunications wholesaler. Loan 16683. Risk band C

This Essex business was established in 2011 and has become unresponsive after missing repayments.

Our collections and recoveries team are working to recover the outstanding amounts for all of the loans described above and they will provide you with updates in the loan comments section on your summary page. Read how our collections and recoveries process works (part one and part two) on our blog.

Enjoy lending, the Funding Circle team

 

*Terms and conditions apply. Apple and Amazon are not a participants in or sponsors of this promotion.

 

Take 10: How to write a press release

Quick and simple ways to boost your business in just 10 minutes

For the first in our Take 10 series, we consider the art of writing a press release. No matter what size you are or the industry your company is in, being able to write a press release is a must for any growing business.  

Take 10 blog banner

What is a press release and why are they important?

A press release is a way to announce important business news to stakeholders, such as existing and prospective customers, and the media.

Let’s look at an example. Say you run a restaurant and you want to announce you’re opening a new one in the area. A press release is your way of communicating this news, helping you to attract new customers and staff to the premises. You may also want to use this as an opportunity to forge partnerships with local suppliers.

There are three main points to think about when you’re writing one:

1. What is the one thing you want to tell people? Think of this as your key message.

2. Why is this information interesting and attractive for a journalist to write about?

3. How do I ensure they pick the right message for my target audience?  

Now let’s look at the structure of your press release.

The headline is your key message.

Paragraph 1 should tell readers the story around your news. If someone was to only read the headline and first sentence, they should know what the story is about.

    Harry’s Pizzeria to open locally-sourced restaurant in Brighton

    Harry’s Pizzeria, the popular family-run pizzeria, has announced its expansion by acquiring a new premises on the seafront, in a bid to become the first restaurant serving only Sussex-sourced produce.

Paragraph 2 will include more detail on the first paragraph.

    Following its launch in 2010, Harry’s Pizzeria has gone from strength to strength, continuing to serve local food to local people. With over 15 employees and a regular customer base, the restaurant will now open a second premises on Main Street in June.

Paragraph 3 is where you can talk in more depth about your business – your elevator pitch. In the above example you could consider writing about what Harry’s Pizzeria is, where it came from and why you chose locally-sourced produce for the second restaurant. Keep in mind you may be speaking to readers who have never heard of your business.

Add a quote or two from the most relevant spokesperson or people – anyone from the restaurant owner to a CEO.

Add ‘END’ at the bottom, followed by contact details and any notes to the editor, including how you calculated figures in your release for example.

Finish up by adding general information about the business, otherwise known as your boilerplate.

You should aim for your press release to be no longer than 1 side of A4 and accompany it with a cover email, which can highlight anything else which may be of interest to the journalist, such as the offer of an interview with a spokesperson. And don’t forget to add the date!

Sending it out to journalists

Do some research to find out if anyone has written about a similar topic recently – they may want to follow up and write about something similar again. It’s also worth knowing when journalist’s deadlines are so you can send your press release across at the right time. National deadlines tend to be early in the morning, whereas regional press are likely to have a deadline day for the following week’s paper.

We hope you’ve found this post useful. Come back for the next installment of Take 10, where we look at the benefits of having your business on Google Places. 

The Funding Circle team

5 tips to protect yourself online | Weekly Lending Review

Week 18: 25 – 29 April

The internet has revolutionised everyday activities such as shopping, and the way we control our finances; however, despite the many benefits the internet brings there are risks involved too – particularly around online security. We’ve put together some top tips to help you better protect your identity online and stay safe.

New loans available to you

There are currently 25 loan requests on the marketplace, and thousands of loan parts available for you to buy which will help you become diversified.

The total value of new loans listed on the Funding Circle marketplace was £14,276,260 averaging at £84,430 per loan. The largest loan value was £500,560 and the smallest loan value was £5,000.

Business loans available to bid on:

Loan parts available for you to buy:

Gross interest rates are before fees and estimated bad debts. Your actual return may be higher or lower as by lending to businesses your capital is at risk.

Weekly marketplace trends

These graphs show the most recent activity on the marketplace. The dates on the graph should be read as ‘week beginning’, for example: 25-Apr represents the week of 25th – 29th April.

The average gross yield graph is reported weekly and shows a rolling two week average of gross yields. This calculation assumes you reinvest your interest each month and therefore includes the compound interest you earn (The calculation is AGY = (1 + (two week rolling weighted average rate/12))^12 – 1). You can view the latest gross interest rates accepted on the marketplace on our statistics page.

Weekly average gross yield (2 weeks rolling)

WLR 18-16 yield

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

Number of listed loans per week

WLR 18-16 loans listed

Listed loan value per week

WLR 18-16 loan value

Total amount lent

WLR 18-16 amount lent

Loan parts available to buy from other investors

WLR 18-16 loan parts

News you should know

The European Investment Fund, part of the European Investment Bank Group, and KfW, a German government-backed bank, are set to invest in UK small businesses through the Funding Circle marketplace. Find out more in City A.M.

Don’t miss out on our spring promotion!

You’ve got just under 2 weeks to make the most of our sensational spring promotion. Increase the amount you lend to businesses by 16th May 2016, and not only can you continue to enjoy the great returns you’d expect from Funding Circle, you could also receive one of these fabulous devices listed below. Lend an additional:

£30,000+ to get an iPad Air 2*, or

£20,000+ for an iPad mini 2*, or

£10,000+ for a Kindle ereader*

If you have any questions about this promotion or how you can qualify, please email us and we’ll be happy to help, or read full details about how to qualify.

Loans defaulted last week

Recruiter. Loan 7525. Risk band C

This Renfrewshire business was established in 2008 and has appointed an advisor to assist with their finances.

Metal production specialist. Loan 10558. Risk band B

This Stirling business has been running since 2009 and appointed a liquidator in February 2016.

Home entertainment systems. Loan 9531. Risk band B

This Merseyside business was established in 2009 and was placed into liquidation in April 2016.

Underwear supplier. Loan 6418. Risk band D

This London business has been running since 2004 and was placed into liquidation in April 2016.

Dentist. Loan 13281. Risk band A+

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

Jeweller. Loan 5213. Risk band A

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

Property management company. Loan 8877. Risk band C

This West Yorkshire business was established in 2011 and has ceased to trade.

Catering equipment wholesaler. Loan 13704. Risk band A

This London business has been running since 2012 and was placed into liquidation in April 2016.

Finance brokers. Loan 5440. Risk band A

This North Somerset business was established in 2003 and will be placed into liquidation in the coming weeks.

Oil and gas consultants. Loan 7315. Risk band C

This Surrey business has been running since 1989 and is considering a Company Voluntary Arrangement.

Our collections and recoveries team are working to recover the outstanding amounts for all of the loans described above and they will provide you with updates in the loan comments section on your summary page. Read how our collections and recoveries process works (part one and part two) on our blog.

Enjoy lending, the Funding Circle team

 

*Terms and conditions apply. Apple and Amazon are not a participants in or sponsors of this promotion.

From Farnborough to the Far East: did you lend to this glass fibre specialist? | Weekly Lending Review

Week 17: 18 – 22 April

For our latest case study we visited Composite Reinforcements in Hampshire, who specialise in the distribution of glass fibre and raw materials. In October 2015, business owner Bob took out a £150,000 business loan to pay a manufacturer early and take advantage of a rebate which covered the cost of the loan. Watch this short video to find out about the supply chain involved in the distribution of glass fibre and the importance of the Yangtze River in China.

New loans available to you

There are currently 34 loan requests on the marketplace, and thousands of loan parts available for you to buy which will help you become diversified.

The total value of new loans listed on the Funding Circle marketplace was £16,809,540 averaging at £81,757 per loan. The largest loan value was £360,500 and the smallest loan value was £7,380.

Business loans available to bid on:

Gross interest rates are before fees and estimated bad debts. Your actual return may be higher or lower as by lending to businesses your capital is at risk.

Weekly marketplace trends

These graphs show the most recent activity on the marketplace. The dates on the graph should be read as ‘week beginning’, for example: 18-Apr represents the week of 18th – 22nd April.

The average gross yield graph is reported weekly and shows a rolling two week average of gross yields. This calculation assumes you reinvest your interest each month and therefore includes the compound interest you earn (The calculation is AGY = (1 + (two week rolling weighted average rate/12))^12 – 1). You can view the latest gross interest rates accepted on the marketplace on our statistics page.

Weekly average gross yield (2 weeks rolling)

WLR 17-16 yield

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

Number of listed loans per week

WLR 17-16 loans listed

Listed loan value per week

WLR 17-16 loan value

Total amount lent

WLR 17-16 amount lent

Loan parts available to buy from other investors

WLR 17-16 loan parts

News you should know

5 tips to protect yourself online

The internet has revolutionised everyday activities such as shopping, and the way we control our finances; however, despite the many benefits the internet brings there are risks involved too – particularly around online security. We’ve put together some top tips to help you better protect your identity online and stay safe.

Don’t miss out on our spring promotion!

You’ve got just under 3 weeks to make the most of our sensational spring promotion. Increase the amount you lend to businesses by 16th May 2016, and not only can you continue to enjoy the great returns you’d expect from Funding Circle, you could also receive one of these fabulous devices listed below. Lend an additional:

£30,000+ to get an iPad Air 2*, or

£20,000+ for an iPad mini 2*, or

£10,000+ for a Kindle ereader*

If you have any questions about this promotion or how you can qualify, please email us and we’ll be happy to help, or read full details about how to qualify.

Loans defaulted last week

Domiciliary care specialist. Loan 3130. Risk band B

This West Sussex business was established in 2010 and will need to repay their loan in quarterly instalments.

Shoe wholesaler. Loan 1364. Risk band B

This East Sussex business has been running since 2003 and was placed into liquidation in April.

Aquatic superstore. Loan 1364. Risk band A

This Hertfordshire business was established in 1991 and has ceased trading.

Marketing agency. Loan 14741. Risk band C

This Manchester business has been running since 2009 and was placed into liquidation in April.

Restaurant. Loan 15777. Risk band D

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

Employment agency. Loan 14485. Risk band A

This Essex business has been running since 2003 and is entering into a Company Voluntary Arrangement.

Joinery specialist. Loan 12197. Risk band C

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

Construction business. Loan 17324. Risk band A

This Kent business has been running since 2013 and is two months in arrears.

Convenience store. Loan 16545. Risk band C

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

Renewable energy specialist. Loan 19277. Risk band B

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

Our collections and recoveries team are working to recover the outstanding amounts for all of the loans described above and they will provide you with updates in the loan comments section on your summary page. Read how our collections and recoveries process works (part one and part two) on our blog.

Enjoy lending, the Funding Circle team

*Terms and conditions apply. Apple and Amazon are not a participants in or sponsors of this promotion.

Five tips to protect yourself online

The internet has revolutionised everyday activities such as shopping, communications, and the way we control our finances; however, despite the many benefits the internet brings there are risks involved too – particularly around online security.

Here at Funding Circle we care about investors and borrowers staying safe online and wanted to provide a few pointers to help you better protect your identity online and stay safe.

1. Keep your password secure.

  • It’s important not to use the same password on multiple websites, especially those used for personal finance, such as Funding Circle. For example, if you used the same password for your email and Funding Circle accounts and your email account were to be compromised, an attacker may also be able to access your Funding Circle account (especially if they know the answers to your security questions).
  • Try to use at least 8 characters, including a minimum of one capital letter and symbol. The more complex the better, a random string of characters will be much harder for a potential attacker to crack.
  • Change your passwords regularly, at least every six months. If you think your password may have been compromised, contact us right away.

2. Keep your security protection up to date.

  • Ensure you have installed the latest security updates for your computer, that you have reputable anti-virus software installed and running, and that your firewall is enabled on your devices.

3. Be careful with your personal information.

  • Be wary when using social networks – they are fantastic tools to communicate with friends and family, but over sharing can provide easy access to your personal information.
  • Do not write down your username or password on a piece of paper, if you need help remembering your complex passwords, there are many reputable password manager tools available.

4. Beware of social engineering.

  • Even with up to date anti-virus software, potential attackers could gain access to your data by influencing you to willingly hand over personal information. You should never give your password or sensitive information to anyone over the phone, even if they claim to be from a trusted source.
  • Phishing – or the art of obtaining information using fake emails or websites, is common practice. If something sounds too good to be true, it usually is. You can test your skill at spotting a potential scam with this online test.

5. Protect your Wi-Fi network.

  • When out and about, be careful of public wi-fi offered on trains, hotels and shopping centres. Never conduct any financial transactions on a network that you do not completely trust.
  • Unprotected wi-fi networks are an easy way to access information stored on your network. Ensuring your home router has a unique, complex password is a must.

We hope this has been helpful, and there is plenty of further information available online to help keep you or your business secure. If you have any further queries, please don’t hesitate to get in touch.

Thanks,

The Funding Circle Team

Investing in the Funding Circle SME Income Fund | Weekly Lending Review

Week 16: 11 -15 April

The Funding Circle SME Income Fund, which launched in November 2015, gives shareholders access to a diverse range of loans across the Funding Circle marketplace in the UK, USA, Germany, Spain and the Netherlands. Find out more about the Fund and how it works.

New loans available to you

There are currently 39 loan requests on the marketplace, and thousands of loan parts available for you to buy which will help you become diversified.

The total value of new loans listed on the Funding Circle marketplace was £11,048,580 averaging at £87,135 per loan. The largest loan value was £549,440 and the smallest loan value was £5,000.

Business loans available to bid on:

Gross interest rates are before fees and estimated bad debts. Your actual return may be higher or lower as by lending to businesses your capital is at risk.

Weekly marketplace trends

These graphs show the most recent activity on the marketplace. The dates on the graph should be read as ‘week beginning’, for example: 11-Apr represents the week of 11th – 15th April.

The average gross yield graph is reported weekly and shows a rolling two week average of gross yields. This calculation assumes you reinvest your interest each month and therefore includes the compound interest you earn (The calculation is AGY = (1 + (two week rolling weighted average rate/12))^12 – 1). You can view the latest gross interest rates accepted on the marketplace on our statistics page.

Weekly average gross yield (2 weeks rolling)

WLR 16-16 Yield

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

Number of listed loans per week

WLR 16-16 loans listed

Listed loan value per week

WLR 16-16 loan value

Total amount lent

WLR 16-16 amount lent

Loan parts available to buy from other investors

WLR 16-16 loan parts

Website issues this week

Apologies for any inconvenience caused by the website issues this week, these issues have now been resolved but do get in touch if you have encounter any problems.

News you should know

This week we took part in a TechSprint organised by the regulator, the Financial Conduct Authority. The event saw tech teams from a range of companies, from KMPG to Lloyds Banking Group, VISA and the Post Office, collaborate to look at the issues surrounding financial inclusion and build a prototype product. It was great to be involved in such a truly innovative event and we were very pleased to be awarded ‘Best Tech.’

Don’t miss out on our spring promotion!

You’ve got just over 3 weeks to make the most of our spring promotion. Increase the amount you lend to businesses by 16th May 2016, and not only can you continue to enjoy the great returns you’d expect from Funding Circle, you could also receive one of these fabulous devices listed below. Lend an additional:

£30,000+ to get an iPad Air 2*, or

£20,000+ for an iPad mini 2*, or

£10,000+ for a Kindle ereader*

If you have any questions about this promotion or how you can qualify, please email us and we’ll be happy to help, or read full details about how to qualify.

Loans defaulted last week

Farm. Loan 7058. Risk band B

This Leicestershire business was established in 2004 and is 4 months in arrears.

Food shop. Loan 11402. Risk band C

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

Builders. Loan 12433. Risk band A

This Devon business was established in 2011 and has ceased trading.

House extension specialist. Loan 19304. Risk band B

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

Our collections and recoveries team are working to recover the outstanding amounts for all of the loans described above and they will provide you with updates in the loan comments section on your summary page. Read how our collections and recoveries process works (part one and part two) on our blog.

Enjoy lending, the Funding Circle team

 

*Terms and conditions apply. Apple and Amazon are not a participants in or sponsors of this promotion.

40% increase in profits for a Brighton business | Weekly Lending Review

Week 15: 4 – 8 April

Earlier this year we visited Brighton Holiday Homes, a holiday rental specialist and Funding Circle borrower, who represent a range of stylish yet affordable flats and houses across the vibrant city. Read the picture story to find out how your lending is helping the real economy in Brighton.

New loans available to you

There are currently 34 loan requests on the marketplace, and thousands of loan parts available for you to buy which will help you become diversified.

The total value of new loans listed on the Funding Circle marketplace was £14,505,840 averaging at £89,039 per loan. The largest loan value was £500,000 and the smallest loan value was £5,000.

Business loans available to bid on:

Gross interest rates are before fees and estimated bad debts. Your actual return may be higher or lower as by lending to businesses your capital is at risk.

Weekly marketplace trends

These graphs show the most recent activity on the marketplace. The dates on the graph should be read as ‘week beginning’, for example: 4-Apr represents the week of 4th – 8th April.

The average gross yield graph is reported weekly and shows a rolling two week average of gross yields. This calculation assumes you reinvest your interest each month and therefore includes the compound interest you earn (The calculation is AGY = (1 + (two week rolling weighted average rate/12))^12 – 1). You can view the latest gross interest rates accepted on the marketplace on our statistics page.

Weekly average gross yield (2 weeks rolling)
WLR 15-16 yield

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

Number of listed loans per week

WLR 15-16 loans listed

Listed loan value per week

WLR 14-16 loan value

Total amount lent

WLR 14-16 amount lent

Loan parts available to buy from other investors

WLR 15-16 loan parts

News you should know

Investing in the Funding Circle SME Income Fund

The Funding Circle SME Income Fund, which launched in November 2015, gives shareholders access to a diverse range of loans across the Funding Circle marketplace in the UK, USA, Germany, Spain and the Netherlands. Find out more about the Fund and how it works on the blog.

Our spring promotion is here!

Spring has sprung at Funding Circle and to celebrate, we’re running a tablet promotion for all investors. Increase the amount you lend to businesses by 16th May 2016, and not only can you continue to enjoy the great returns you’d expect from Funding Circle, you could also receive one of these fabulous devices listed below. Lend an additional:

£30,000+ to get an iPad Air 2*, or

£20,000+ for an iPad mini 2*, or

£10,000+ for a Kindle*

If you have any questions about this promotion or how you can qualify, please email us and we’ll be happy to help, or read full details about how to qualify.

Loans defaulted last week

Boat yard. Loan 1747. Risk band B

This Essex business was established in 1995 and has ceased trading.

Communications agency. Loan 2648. Risk band A

This Nottinghamshire business has been running since 2006 and is 3 months in arrears.

Furniture manufacturer. Loan 2965. Risk band C

This Warwickshire business was established in 2002 and was placed into liquidation in March 2016.

Car retailer. Loan 7850. Risk band C

This Nottinghamshire business has been running since 2014 and is 3 months in arrears.

Sash window manufacturer. Loan 10639. Risk band A

This Glasgow business was established in 2003 and was placed into liquidation in January 2016.

Construction specialist. Loan 16537. Risk band A+

This Hertfordshire business has been running since 2012 and was placed into liquidation in January 2016.

Bath supplier. Loan 18656. Risk band D

This Hertfordshire business was established in 2006 and has become unresponsive after missing repayments.

Our collections and recoveries team are working to recover the outstanding amounts for all of the loans described above and they will provide you with updates in the loan comments section on your summary page. Read how our collections and recoveries process works (part one and part two) on our blog.

Enjoy lending, the Funding Circle team

 

*Terms and conditions apply. Apple and Amazon are not a participants in or sponsors of this promotion.

The Funding Circle SME Income Fund

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

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

What is the Funding Circle SME Income Fund?

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

How does it work?

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

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

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

Including the Funding Circle SME Income Fund within your investment portfolio

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

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

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

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

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

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

The Funding Circle Team

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

 

Marketplace lending is about to enter a golden age. March industry news

Newspapers - Copy

Ex-European Central Bank, Germany Official Asmussen Jumps Into Online Lending Boom

This month, we were incredibly pleased to announce the appointment of Jörg Asmussen to the Funding Circle board. Jörg is a German economist and policymaker who has held numerous high-profile positions, including as a finance minister and at the European Central Bank. We are hugely privileged to have him join the team, and his experience and expertise will be very useful as we accelerate our growth across the UK, US and Europe. Further coverage seen in Business Insider.

Should you use your Isa for peer-to-peer lending?

As you may be aware, the government will launch the Innovative Finance ISA this tax year, which will enable you to earn tax-free returns by lending to businesses directly through Funding Circle. In order to launch an Innovative Finance ISA, all peer-to-peer lending platforms are required to be fully authorised by the regulator, the Financial Conduct Authority (FCA). The FCA is close to completing their review process with us and we’re very excited to launch the Funding Circle ISA as soon as we receive full authorisation. For more information, please read our most recent blog post and take a look at our website. You can also read more about Innovative Finance ISAs in City AM and Telegraph.

Funding Circle SME Income Fund buys loans in Continental Europe

In other exciting news, the Funding Circle SME Income Fund is now lending to small businesses through Funding Circle’s marketplaces in Germany, Spain and the Netherlands. The SME Income Fund was listed on the London Stock Exchange towards the end of 2015, and lends exclusively to small businesses through Funding Circle’s marketplaces in the UK, US, and now Europe. Investors in the UK can hold shares in the Funding Circle SME Income Fund through either their existing Stocks & Shares ISA or Self Invested Personal Pension. Please contact your financial adviser with any questions.

Funding Circle’s CEO addressed ‘the most pertinent question anyone can ask about our industry’

Our CEO, Samir, gave the keynote speech at AltFi, a leading industry conference, where he addressed the challenges and opportunities for marketplace lending. Welcoming recent scrutiny on the sector, Samir believes the reasons for founding Funding Circle remain the same and that contrary to recent criticism, marketplace lending is about to enter a golden age. You can watch his full speech here and read further coverage in Financial Times.

Funding Circle is dedicating an entire floor in its new office to younger startups

And finally, do you know of any start-up or small companies looking for a new workspace to call home? At our London headquarters, we’ve dedicated an entire floor to younger and smaller businesses who are in need of desks in the heart of the city at a reduced market rate. Our Chief Operations Officer, Pam Burton, commented: “We know what it’s like to be small and entrepreneurial, and we hope that access to central London and the city will mean other firms have the opportunity to flourish.” Spark any interest? Please see here for more information and get in touch!

Our spring promotion is here! | Weekly Lending Review

Week 14: 28 March – 1 April

Spring has sprung at Funding Circle and to celebrate, we’re running a tablet promotion for all investors. Increase the amount you lend to businesses by 16th May 2016, and not only can you continue to enjoy the great returns you’d expect from Funding Circle, you could also receive one of these fabulous devices listed below. Lend an additional:

£30,000+ to get an iPad Air 2*, or

£20,000+ for an iPad mini 2*, or

£10,000+ for a Kindle*

If you have any questions about this promotion or how you can qualify, please email us and we’ll be happy to help, or read full details on our blog.

New loans available to you

There are currently 20 loan requests on the marketplace, and thousands of loan parts available for you to buy which will help you become diversified.

The total value of new loans listed on the Funding Circle marketplace was £11,418,080 averaging at £66,185 per loan. The largest loan value was £510,280 and the smallest loan value was £5,000.

Business loans available to bid on:

Gross interest rates are before fees and estimated bad debts. Your actual return may be higher or lower as by lending to businesses your capital is at risk.

Weekly marketplace trends

These graphs show the most recent activity on the marketplace. The dates on the graph should be read as ‘week beginning’, for example: 28-Mar represents the week of 28th March – 1st April.

The average gross yield graph is reported weekly and shows a rolling two week average of gross yields. This calculation assumes you reinvest your interest each month and therefore includes the compound interest you earn (The calculation is AGY = (1 + (two week rolling weighted average rate/12))^12 – 1). You can view the latest gross interest rates accepted on the marketplace on our statistics page.

Weekly average gross yield (2 weeks rolling)
WLR 14-16 Yield

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

Number of listed loans per week

WLR 14-16 loans listed

Listed loan value per week

WLR 14-16 loan value

Total amount lent

WLR 14-16 amount lent

Loan parts available to buy from other investors

WLR 14-16 loan parts

News you should know

Funding Circle ISA – latest news

We’re looking forward to being able to launch the Funding Circle ISA soon. As you may be aware, in order to launch an Innovative Finance ISA, all peer-to-peer lending platforms are required to be fully authorised by the regulator, the Financial Conduct Authority (FCA). We’re working closely with the FCA on our submission and our work with them is progressing well. We’ll keep you up-to-date with progress on the blog, or join the conversation about ISAs on the forum.

Loans defaulted last week

Music publication. Loan 16271. Risk band B

This Manchester business was established in 2011 and has ceased trading.

Engineer. Loan 18804. Risk band A

This Aberdeen business has been running since 2013 and was placed into liquidation in January.

Security company. Loan 16496. Risk band B

This London business was established in 2004 and has ceased trading.

Media agency. Loan 18225. Risk band A+

This Swansea business has been running since 2013 and was placed into liquidation in March.

Manufacturer. Loan 2411. Risk band B

This Wiltshire business was established in 1990 and was placed into liquidation in November.

Digital printer. Loan 2002. Risk band B

This Dorset business has been running since 2007 and is two months in arrears.

Taxi business. Loan 7285. Risk band B

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

IT solution provider. Loan 11956. Risk band A

This Bristol business has been running since 2001 and was placed into liquidation in December.

Our collections and recoveries team are working to recover the outstanding amounts for all of the loans described above and they will provide you with updates in the loan comments section on your summary page. Read how our collections and recoveries process works (part one and part two) on our blog.

Enjoy lending, the Funding Circle team

*Terms and conditions apply. Apple and Amazon are not a participants in or sponsors of this promotion.

Our spring promotion is here!

Spring has sprung at Funding Circle and to celebrate, we’re running a tablet promotion for all investors.

Spring Promo Hero 2 OFFICIAL (1)

If you lend an additional £10,000+, £20,000+ or £30,000+ to businesses in the next 6 weeks, you will be eligible for one of these brand new devices.

Promotion details

Lend an additional £30,000+ and get an iPad Air 2*

Lend an additional £30,000 or more through Funding Circle by 16th May 2016 and you’ll receive a brand new, shiny and light Apple iPad Air 2!

Or,

Lend an additional £20,000+ and get an iPad mini 2*

Lend an additional £20,000 or more through Funding Circle by 16th May 2016 and you’ll receive a brand new, shiny and beautiful Apple iPad mini 2!

Or,

Lend an additional £10,000+ and get a Kindle*

Lend an additional £10,000 or more through Funding Circle by 16th May 2016 and you’ll receive an Amazon Kindle ereader!

3 steps to qualify for a gift:

1. Log into your investor account and transfer funds

2. Increase your lending by the amounts stated above by Monday 16th May 2016

3. We’ll send you one of these brand new devices for you to enjoy

Top tip: Buying loan parts from other investors on the secondary market is a quick and easy way to increase the amount you have lent to businesses.

Please note, using Autobid is not a guarantee you will lend out the required amount. We’d encourage you to log back in regularly to check on your progress. And remember, by lending to businesses your capital is at risk – diversification is a great way to manage this.

How to make sure you’re eligible

We measure additional lending as the difference between the ‘amount lent’ shown in your Funding Circle investor account on Friday 1st April 2016 at 00:01, to the ‘amount lent’ in the same account on Monday 16th May 2016 at 23:59.

Only one reward per investor and this promotion is not an April Fools’!

If you have any questions about this promotion or how you can qualify, please email us and we’ll be happy to help.

Enjoy lending

The Funding Circle team

*Terms and conditions apply.

 

The Funding Circle ISA – latest news

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

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

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

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

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

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

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

The Funding Circle team

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

Did you help 167 businesses access finance last week? | Weekly Lending Review

Week 13: 21 – 24 March

Last week, you and other investors helped 167 businesses across the UK access £13.2 million through the Funding Circle marketplace. Of the new loans listed, the South East was the most popular business location, and property & construction was the most popular sector.

New loans available to you

There are currently 46 loan requests on the marketplace, and thousands of loan parts available for you to buy which will help you become diversified.

The total value of new loans listed on the Funding Circle marketplace was £13,839,420 averaging at £79,233 per loan. The largest loan value was £407,620 and the smallest loan value was £5,000.

Business loans available to bid on:

Gross interest rates are before fees and estimated bad debts. Your actual return may be higher or lower as by lending to businesses your capital is at risk.

Weekly marketplace trends

These graphs show the most recent activity on the marketplace. The dates on the graph should be read as ‘week beginning’, for example: 21-Mar represents the week of 21st – 24th March.

The average gross yield graph is reported weekly and shows a rolling two week average of gross yields. This calculation assumes you reinvest your interest each month and therefore includes the compound interest you earn (The calculation is AGY = (1 + (two week rolling weighted average rate/12))^12 – 1). You can view the latest gross interest rates accepted on the marketplace on our statistics page.

Weekly average gross yield (2 weeks rolling)

WLR 13-16 yield

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

Number of listed loans per week

WLR 13-16 loans listed

Listed loan value per week

WLR 13-16 loan value

Total amount lent

WLR 13-16 amount lent

Loan parts available to buy from other investors

WLR 13-16 loan parts

News you should know

We’re very much looking forward to the launch of the Funding Circle Innovative Finance ISA next month. We are hoping to have full authorisation from the regulator soon which will enable us to apply to become an ISA Manager. You can keep up to date with progress and join the conversation about ISAs on the forum.

Loans defaulted last week

Property rental business. Loan 9742. Risk band C

This Devon business has been running since 2011 and has been placed into liquidation.

Builder. Loan 18106. Risk band B

This West Lothian business was established in 2011 and has become unresponsive after missing repayments.

Shop. Loan 5695. Risk band B

This Kent business has been running since 2011 and was placed into liquidation in August.

Machinery specialist. Loan 1762. Risk band C

This Oxfordshire business was established in 1981 and was placed into liquidation in March.

Clothing designer. Loan 16690. Risk band A+

This London business has been running since 2011 and was placed into administration in March.

Care home. Loan 7538. Risk band C

This Hull business was established in 2009 and was placed into administration in February.

Saddle fitting specialist. Loan 5801. Risk band C

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

Engineer. Loan 17506. Risk band A

This Hampshire business was established in 1992 and has become unresponsive after missing repayments.

Training company. Loan 3618. Risk band A

This Ayrshire business has been running since 2007 and is four months in arrears.

Builder. Loan 12382. Risk band A

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

Garden centre. Loan 15131. Risk band E

This Gloucestershire business has been running since 2012 and has ceased trading.

Our collections and recoveries team are working to recover the outstanding amounts for all of the loans described above and they will provide you with updates in the loan comments section on your summary page. Read how our collections and recoveries process works (part one and part two) on our blog.

Enjoy lending, the Funding Circle team

 

Egg-cellent Easter treats & updated T&Cs | Weekly Lending Review

Week 12: 14 – 18 March

Looking for tasty Easter treats to spoil your friends and family? We’ve put together a list of egg-cellent gift ideas manufactured by Funding Circle borrowers across the UK, including milk chocolate mini eggs made in Preston and Easter hampers from Warwickshire.

New loans available to you

There are currently 38 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 £15,921,660 averaging at £68,146 per loan. The largest loan value was £452,180 and the smallest loan value was £5,220.

Business loans available to bid on:

Gross interest rates are before fees and estimated bad debts. Your actual return may be higher or lower as by lending to businesses your capital is at risk.

Weekly marketplace trends

These graphs show the most recent activity on the marketplace. The dates on the graph should be read as ‘week beginning’, for example: 14-Mar represents the week of 14th – 18th March.

The average gross yield graph is reported weekly and shows a rolling two week average of gross yields. This calculation assumes you reinvest your interest each month and therefore includes the compound interest you earn (The calculation is AGY = (1 + (two week rolling weighted average rate/12))^12 – 1). You can view the latest gross interest rates accepted on the marketplace on our statistics page.

Weekly average gross yield (2 weeks rolling)

WLR 12-16 yield

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

Number of listed loans per week

WLR 12-16 loans listed

Listed loan value per week

WLR 12-16 loan value

Total amount lent

WLR 12-16 amount lent

Loan parts available to buy from other investors

WLR 12-16 loan parts

News you should know

Helping businesses finance more of their requirements

Since launching in 2010, we’ve extended the types of loans we offer to help more UK businesses access the finance they need to grow. This week we’re updating our Investor T&Cs to allow us to facilitate loans at different risk bands to the same borrower. Read more about the update on the blog, however there is nothing you need to do.

Loans defaulted last week

Fitness equipment specialist. Loan 12524. Risk band C

This Mid Glamorgan business has been running since 2012 and is 3 months in arrears.

Engineers. Loan 7030. Risk band B

This South Yorkshire business was established in 2003 and has proposed a Company Voluntary Arrangement.

Chauffeurs. Loan 14234. Risk band E

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

Cinemas. Loan 11431. Risk band C

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

Marketing agency. Loan 5137. Risk band D

This Merseyside business has been running since 2010 and has been placed into liquidation.

IT services. Loan 3349. Risk band A+

This London business was established in 2006 and has become unresponsive after missing repayments.

Manufacturer. Loan 3905. Risk band D

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

Estate agents. Loan 3617. Risk band B

This South Yorkshire business was established in 2006 and has become unresponsive after missing repayments.

Bike shop. Loan 11325. Risk band B

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

Construction product supplier. Loan 10938. Risk band B

This Worcestershire business was established in 2009 and has been placed into liquidation.

Recruitment agency. Loan 8127. Risk band B

This Greater Manchester business has been running since 2009 and has been placed into liquidation.

Stove specialist. Loan 13481. Risk band A

This West Yorkshire business was established in 2013 and has been placed into liquidation.

Dentist. Loan 11349. Risk band B

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

Property refurbishment company. Loan 15406. Risk band B

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

Lending to businesses can deliver attractive returns, while helping businesses access the finance they need to grow. However, from time-to-time some businesses will be unable to repay their loan, which is why lending a small amount to lots of different businesses is so important. Watch our 90 second diversification video below to find out more. Remember, by lending to businesses your capital is at risk.

Our collections and recoveries team are working to recover the outstanding amounts for all of the loans described above and they will provide you with updates in the loan comments section on your summary page. Read how our collections and recoveries process works (part one and part two) on our blog.

Enjoy lending, the Funding Circle team