Your autumn review

By lending through Funding Circle you make a huge difference to businesses throughout the UK. With your help they’re able to grow, create jobs, develop new products and support local communities. Thank you for your continued support – you’re helping drive the UK economy forward! Read on to find out more in your spring review. 

Autumn review – lending figures

Between July-Sept 2018 you and other investors helped thousands more businesses get the finance they need to thrive.

Spring review - lending figure

*In July-Sept 2018, new loans made through Funding Circle helped unlock 3,540 jobs across the UK.

July-Sept sector breakdown

The industries you have been lending to:

Industry breakdown

 

July-Sept 2018 regional breakdown

Your lending has been helping every region throughout the UK: 

Regional breakdown

More on your impact

For more detail on how your lending is helping businesses throughout the UK, check out our blog on how you’re helping the economy grow, or you can sign in to your account to add funds

By lending to businesses your capital is at risk.

Enjoy lending!

The Funding Circle team

Add funds to get an iPad

For a limited time only, you’ll get a gift when you add £15,000 or more to your Funding Circle account!

What gift can I claim?

The gift you receive depends on how much you transfer into your account:

  • Add £30,000 to get an Apple iPad 32GB WiFi
  • Add £20,000 to get £200 John Lewis vouchers
  • Add £15,000 to get an Amazon Echo

What do I need to do?

Add enough funds to your account between 21:00 on Tuesday 16 October and 23:59 on Friday 16th November to get the gift you want. You also need to have lending switched on and keep the extra funds lent out until midnight on Wednesday 16th January 2019. We’ll then send your free gift to the address registered to your Funding Circle account.

Can I use my ISA and Classic accounts?

You can only claim one gift per person. If you only have an ISA account and have used up your ISA allowance, you can transfer existing ISAs you hold from other providers, or open a Classic account.

If you have both an ISA and Classic account registered to the same email address, you can split the extra funds between the two. However, if you withdraw from one and transfer to the other, you won’t qualify for a gift. We’ll look at the net amount added between the two.

If you’re transferring an ISA from another provider, we need to have received your ISA transfer form by 16th November for you to qualify.

Make sure your address is up to date

We will send your free gift to the address registered to your account. Please check your details are up to date by signing in to your account.

To claim your gift, sign in and add funds to your account today.  

For more information speak to our team on 020 7401 9111 or contactus@fundingcircle.com. Terms and conditions apply. By lending to businesses your capital is at risk.

Enjoy lending!

The Funding Circle team

Funding Circle lists on the London Stock Exchange

We are pleased to announce that we are now a public limited company (plc) and are listed on the London Stock Exchange. This is the next stage in our exciting journey to help thousands more small businesses access the finance they need to grow, and to provide investors with a better deal.

Today’s news is an exciting moment for the company, but we wanted to reiterate that your lending experience will not be affected in any way.

If you have any questions about your experience at Funding Circle, please get in touch.

Enjoy lending,

The Funding Circle team

News

Update on Funding Circle’s next stage of growth

This is an advertisement and not a prospectus. Potential investors should not apply for or buy any shares in Funding Circle Holdings Limited (to be renamed Funding Circle Holdings plc) (the “Company”) except on the basis of information contained in a prospectus that may be published by the Company and which, if published, will be made available at corporate.fundingcircle.com.

 

Important Funding Circle update

 

Since Funding Circle launched 8 years ago, investors on our platform have lent more than £5 billion to over 50,000 businesses globally, earning attractive returns whilst supporting economic growth and job creation across the UK, US, Germany and the Netherlands.

Today we have announced the next stage of our growth and we’re delighted to confirm that we are considering proceeding with an initial public offering (IPO). This means Funding Circle’s ownership structure would change from a private company to a publicly listed company.

What this means for you

Should we decide to proceed with an IPO, there will be no impact on your existing relationship with Funding Circle. Additionally, we anticipate that you will have the opportunity to apply to participate in the IPO and become a shareholder in Funding Circle via an intermediaries offer.

Further information on this possible offer and the potential intermediaries involved will be available in due course. We anticipate any potential intermediaries offer to open in the coming weeks if the IPO proceeds. Once open there will only be a limited time in which to apply. Before making any investment decision you should speak with your own stockbroker or financial advisor.

We believe these developments highlight an exciting future for Funding Circle. Thank you for your continued support and if you have any questions about your experience at Funding Circle, please get in touch.

The Funding Circle team

This advertisement is issued by and is the sole responsibility of Funding Circle Holdings Limited (shortly to be renamed Funding Circle Holdings plc) (“Funding Circle”) and has been approved solely for the purposes of Section 21 of the Financial Services and Markets Act 2000 by Numis Securities Limited (“Numis”), whose registered address is at The London Stock Exchange Building, 10 Paternoster Square, London EC4M 7LT, and who is authorised and regulated by the Financial Conduct Authority. Numis is acting exclusively for Funding Circle and no-one else in relation to or in connection with the possible offer of the shares in Funding Circle and will not be responsible to anyone other than Funding Circle for providing protections afforded to clients of Numis and is not providing, and will not provide, advice in relation to the possible offer or any matter referred to in this advertisement. This advertisement does not constitute an offer or recommendation concerning the shares referred to in this advertisement or advice about purchasing shares in the Company and is not a substitute for independent advice about legal, financial, investment or tax matters.

 

Before purchasing any shares, you should make sure that you fully understand and accept the risks which will be set out in any prospectus which may be published by the Company at the time of any share offer and made available at corporate.fundingcircle.com. If you have any concerns about the suitability of shares in the Company, you should consult an independent financial advisor.
 
This advertisement is not for distribution or publication in any jurisdiction outside the UK, the Channel Islands and the Isle of Man. In particular, this advertisement is not for release, publication or distribution, in whole or in part, directly or indirectly, in or within the United States of America, Australia, Canada, Japan or any other jurisdiction where it would be unlawful to distribute this advertisement.

 

No reliance may be placed for any purpose whatsoever on the information contained in this document or on its accuracy or completeness. Apart from the responsibilities and liabilities, if any, which may be imposed by FSMA or the regulatory regime established thereunder, no liability whatsoever is accepted by Funding Circle, Numis or any of their respective members, directors, officers or employees nor any other person for any loss howsoever arising, directly or indirectly, from any use of such information or opinions otherwise arising in connection therewith.
News

Your spring review 2018

By lending through Funding Circle you make a huge difference to businesses throughout the UK. With your help they’re able to grow, create jobs, develop new products and support local communities. Thank you for your continued support – you’re helping drive the UK economy forward! Read on to find out more in your spring review. 

Spring review – lending figures

Between April-June 2018 you and other investors helped thousands more businesses get the finance they need to thrive.

Spring review

*In April-June 2018, new loans made through Funding Circle helped unlock 4,140 jobs across the UK.

April-Jun 2018 sector breakdown

The industries you have been lending to:

Spring review

April-June 2018 regional breakdown

Your lending has been helping every region throughout the UK: 

Spring review

More on your impact

For more detail on how your lending is helping businesses throughout the UK, check out our blog on how you’re helping the economy grow.

Or if you prefer to look at the wider picture, read our Spring Industry News for updates and articles on investing, important finance news and more. Or sign in to your account to add funds

By lending to businesses your capital is at risk.

Enjoy lending!

The Funding Circle team

 

The new ISA season for investors and your spring industry news

The new ISA season from peer-to-peer lenders – The Telegraph

Discussing the emergence of the Innovative Finance ISA (IFISA), the Telegraph describes how the industry has been able to offer far higher interest rates than the banks. Launched in 2016, there is now a wide variety of IFISA providers lending to different types of borrowers. “After the financial crisis this new type of lending took off as savers lost faith in banks amid plummeting returns on savings accounts.” With the range of products now available, IFISA numbers are expected to swell rapidly this year.  

50 ways to boost your savings income: peer-to-peer lending – Moneywise

Looking in more detail at how to use lending platforms, Moneywise discuss the benefits of diversification. “P2P platforms operate differently, so check whether you are lending to one individual or business, or your money is being distributed between a number of borrowers.” At Funding Circle, our lending tool will spread your funds across a variety of businesses to help you build a diversified portfolio.

Report shows the dramatic impact Funding Circle has on the economy – The Times

As well as earning for your future, your lending is helping the country to thrive. A recent report by Oxford Economics showed that, thanks to your lending, businesses created and sustained 45,000 UK jobs in 2017 and contributed £2.4 billion to the economy. John Glen, Economic Secretary to the Treasury, said it showed that the rise of “peer-to-peer lending has brought about real benefits, not only for the businesses of Britain but, as this report shows, our economy, too”. Having founded Funding Circle in 2010 to help small businesses, CEO Samir Desai tells Bloomberg how rewarding it is to see the impact it’s having on the UK economy.

A dozen start-ups trying to revolutionise SME banking – Forbes

Another exciting development was the announcement that Funding Circle is on the shortlist for Nesta’s Open Up Challenge. Backed by the Competition and Markets Authority (CMA), the 12 finalists are looking to create innovative new products to improve financial services for small and medium sized businesses. City A.M. describes how each finalist will receive a grant of £100,000 to work on their ventures, plus early access to open banking data.

The UK is officially the tech unicorn capital of Europe – Evening Standard

As well as leading the way on financial innovations, the UK has been crowned the tech unicorn capital of Europe. A unicorn is any private company with a valuation of £1 billion or more. The news is not only good for growing companies looking to hire the best talent, but also for consumers who have been able to benefit from these exciting new products. From the takeaway app Deliveroo to challenger bank Revolut, consumers are enjoying a wealth of new possibilities thanks to innovative UK companies.

Is it wrong for banks to launch flanker brands? – Alt Fi

The growth of such innovative tech businesses changing the shape of financial services. In response, several banks such as Natwest, ING and Santander have launched or announced their own digital offshoots. Known as ‘flanker brands’ they have received criticism from some for trying to hide their parent company under a new brand. Samir Desai, however, disagrees, and believes it could actually be a good thing for fintech – “I don’t think [they are] morally dubious. I think banks have in the past had lots of different brands” he said. “In many ways, it’s a good thing. It expands the market and it brings more borrowers online and we’re very comfortable competing for borrowers online.”

Fintech is giving small businesses access to finance – Raconteur

While the banks look to respond, businesses are already reaping the benefits of the new opportunities tech has brought. Pirates Grog Rum describe how they have grown 100% year on year after switching from bank loans to Funding Circle. In contrast to the hassle and paperwork of applying through banks, business owner Beth Jones much preferred our quick, straightforward process “Funding Circle was so much easier and gave us what we needed, all online. In fact, we arranged the latest loan while on holiday in India. It’s a great relief to know it’s there to ease cash flow when we need to restock at busy times.”

Bobbin bicycles show how to keep the export wheels turning – The Times

Looking at more success stories, The Times interviewed Bobbin Bicycles, who have shown the path to success for British exporters in a post-Brexit world. They got support from the Department of Trade, who gave valuable advice and helped fund trips to overseas trade fairs. Combined with extra finance and a lively Instagram account, their business has gone from strength to strength. It’s amazing how people find us from around the world,” said Cofounder Sian. “A lot of it comes through social media. Someone sees a picture online and the next thing you know we are selling bikes in Uruguay.”

Funding Circle hires first female non-executive director – Sky News

Finally, as well as having an external impact, we’ve also made some exciting internal changes. In May we announced our new board member Cath Keers. A former O2 executive, Cath is an experienced executive in the technology, retail and logistics industries. “Funding Circle is changing how the world’s small businesses access finance, and the impact it’s had on the economy and job creation over the past eight years is inspiring. I share the team’s commitment to delivering the best results for customers. The company’s high levels of repeat business demonstrate that both investors and borrowers also recognise this passion.”

Remember, by lending to businesses your investment can go down as well as up and your capital is at risk.

Update to our projected returns

At Funding Circle, our aim is to allow you to earn attractive, stable returns by lending directly to a diversified portfolio of creditworthy businesses. As part of this commitment, we regularly review and update our assessment process and the interest rates at which you lend to businesses.

Following our most recent review, we have updated the projected returns we display for each lending option and will now show these returns as a range.

Introducing ranges for projected returns

The projected return is the annual return that a diversified investor could earn, after fees and bad debt but before tax, by lending to businesses through each lending option. To reflect there is an expected level of uncertainty when making predictions about loan performance we are introducing ranges for the projected returns.

What are the new projected returns?

Following our most recent review of our gross interest rates and taking into account the above, the projected returns for our Balanced and Conservative lending options are now:

  • Balanced – 6 – 7%
  • Conservative 5 – 5.5%

You can see more information on how the projected return is calculated here.

What other factors can affect your return?

It’s important to understand that your actual return may be higher or lower than the projected return shown for your chosen lending option. This can be caused by factors such as:

  • Actual performance may be higher or lower than projected – for example, more businesses may be unable to repay their loans if macroeconomic conditions were to change, such as during an economic downturn. In addition, the individual businesses you lend to may perform better or worse than projected.
  • The number of businesses you lend to – it’s important to understand that you are lending to your own individual portfolio of loans and not everyone will earn the same projected return. As your personal projected return depends on the loans your funds are matched with, the more businesses you lend to the better our lending tool will be at matching your funds to achieve the projected returns shown. Lending to more businesses also helps you earn a more stable return by reducing the impact of bad debt.
  • Your actual return is likely to change over time the projected return is the annual return you could earn once all loans have repaid and recoveries have been received from defaulted loans. It’s important to remember that bad debts do not typically occur evenly over the life of a group of loans, and it often takes time for recoveries to be made on defaulted loans. This means your return is likely to change over time. You can read more about this here.

Remember, by lending to businesses your capital is at risk.

Will this affect the businesses you lend to?

These projected returns only affect new loans made through the platform, and will not affect any loan parts you currently hold. We will review and if necessary, update the projected returns every three months. We display projected returns for the past five years of loans on our statistics page, and update these every three months.

You do not need to do anything and, by having lending switched on, you will continue to lend to businesses automatically. As always, you can change your lending option or pause lending via the lending settings page of your account.

If you have any questions about today’s news, please get in touch.

Enjoy lending,

The Funding Circle team

5 ways to treat your Dad this Father’s Day

Trying to think of something to get your Dad this Father’s Day? Instead of giving him another pair of socks or a coffee mug, we have come up with a variety of ideas for all the different Dads out there. All these businesses have been able to flourish thanks to your lending.

Organise a trip away

Does your Dad love being outdoors? How about organising a short trip away to the rural village of Alves in Northern Scotland? Here you’ll find North Alves Holiday Park. The company is run by a passionate couple who have come up with their very own unique style of “glamping”. When visiting this park you have the opportunity to stay in a SKARA central-BBQ cabin, which allows you to enjoy the pleasure of socialising and cooking at the same time. In order to continue to cater for the ever-growing needs of their customers, the company borrowed £31,000 on two separate occasions in 2017 and 2018.

 

Get ready for a fishing trip

Does your Dad reckon himself as a bit of an angler? If so head down to Top Tackle for his Father’s Day supplies this year. These guys offer a range of fishing tackle and other accessories. They deal with a number of major fishing tackle manufacturers, such as Korda and Preston Innovations. The company borrowed £5,000 at the beginning of the year. This funding helped to introduce even further ranges to their online portal and renovate their store in central Oxford.

Have some throwback fun

Get the flares out of the cupboard and break out the Dad dancing with at Razza Roller Disco! Razza was created by dance champion Gary Newley in 2012 with the purpose to deliver an incredible customer service for all. You can also book a skating lesson at Razza Skate Academy. The company was able to expand into other areas of the country after they borrowed £47,000.00 at the beginning of 2018, purchasing new DJ gear, safety equipment and uniforms.

Watch an extreme sports performance

Is your Dad more into adrenaline action? Check out Inspire Shows, who provide unforgettable extreme sports performances. You may recognise their team of highly skilled stunt individuals from the popular TV show “Don’t Tell the Bride”, where they conducted the world’s first ever extreme sports wedding. Thanks to your lending, the company purchased more stunt ramps for their nail-biting shows, enabling them to host multiple bookings on the same day.

Get a luxury grooming set

Finally, if your Dad is needing some R&R then you could always spoil him rotten with a gift set from Debonair Male and Fitness Grooming. Whether it’s their Deluxe Beard Oil Gift Box or Daily Shampoo Moisturising Conditioner Set, this luxury British brand provides a range of high-quality products with an innovative approach. Their aim is to make men of all ages and backgrounds feel good about themselves. The company was able to purchase new salon equipment after borrowing £13,000 at the beginning of 2018.

Are you interested in lending to businesses like these?
Lend alongside 79,000 investors and support British businesses 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.

May Round-Up

Welcome to May’s round-up. This month we have usual stories and advice, plus thoughts on the Royal Wedding from a bridal boutique you’ve helped to fund. Read on below to find answers to more of your most asked questions, plus we look at bad debt, defaults and why you shouldn’t be afraid of them.

Business owner quote of the month

“This has provided a cash flow lifeline to my business, enabling me to fund new staff members and build my business” — Andrew.

Investor quote of the month

“I am really enjoying being a lender and love the way I can watch my investment grow” — Diane.

7 steps to planning your dream wedding

To celebrate the coming together of Prince Harry and Meghan Markle, we bring you 7 businesses to plan the wedding of your dreams. From finding the perfect dress to booking the ideal honeymoon, these businesses have all been able to flourish thanks to your lending.

With the wedding only a day away, we also spoke to bridal boutique and Funding Circle borrower Froufrou for their thoughts on Meghan’s dress:

“We’re hoping she goes more demure and stylish compared to the more traditional gown of Kate Middleton. We love the embellished gowns from potential designers Ralph & Russo, but whatever she chooses will be breathtakingly beautiful!”

Top 5 investor questions answered – part 2

Our investor support team are on hand to help with any queries you have about your account, how lending works or Funding Circle in general. Continuing from last month’s article, we have more of the answers you’re looking for in your top questions answered – part 2.

Bad debt, defaults and why not to be afraid of them

In this blog, we describe what these terms mean and discuss how you can reduce their impact to still earn a good return at Funding Circle. Find out more here.

April round-up

In case you missed, here’s our April round-up. In this blog you can find industry news, business success stories, your top 5 questions answered and changes and opportunities for the new tax year from Simon Read.

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

Cath Keers joins Funding Circle board

Today we’re pleased to announce the appointment of Cath Keers to the Funding Circle board. Cath brings over three decades of professional and leadership experience across the retail, consumer, digital and technology sectors.

Currently serving as a Non-Executive Director for Sage Group and TalkTalk, Cath is also Chair of ustwo Company. Her previous roles include a main board directorship at O2, and non-executive directorships at Royal Mail, LV= and Home Retail Group.

Commenting on joining the team, Cath said “Funding Circle is changing how the world’s small businesses access finance, and the impact it’s had on the economy and job creation over the past eight years is inspiring. I am impressed by the management team’s depth of insight and experience. I share the team’s commitment to delivering the best results for customers, and the company’s high levels of repeat business demonstrate that both investors and borrowers also recognise this passion.”

At Funding Circle our aim is to allow investors like you to become the leading source of small business finance globally, with today’s news coming as the amount lent by investors through the Funding Circle platform surpasses £4.5 billion. This includes more than £3.4 billion lent by 70,000 investors in the UK alone.

You can read more about today’s announcement in our full press release here.

Enjoy lending,

The Funding Circle team

April Round-Up

In this month’s round-up you can find industry news, business success stories, your top 5 questions answered and finally changes and opportunities for the new tax year from Simon Read. Read on below to find out more.

Trustpilot quote of the month

“We really like what Funding Circle are doing. From our initial enquiry, funds had cleared into our bank within 7 working days. We can now focus on growing our business. Thank you Funding Circle – for doing the work the banks should be doing!”

Bobbin Bicycles shows how to keep the export wheels turning

It’s great to see one of the businesses in our community featured in The Sunday Times, highlighting how selling overseas can help small businesses thrive.

Founded in 2007, Bobbin Bicycles supply a range of trendy leisure bicycles for everyday cyclists across the world. In 2016, they borrowed £250,000 through Funding Circle to buy stock for their new online sales channel. They’ve recently come back for second loan of £150,000 for working capital. Thanks to your support, we can continue to help small businesses, like Bobbin Bicycles, and push the economy forward.

Top 5 investor questions – answered

Our investor support team are on hand to help with any queries you have about your account, how lending works or Funding Circle in general. We spoke to the team to find out the most common questions you were asking. Here are your top 5 questions answered.

March industry news

In this issue, we discuss how technology has sparked a cultural shift within financial services, and how businesses are turning away from banks for financial support. Read more on this in our industry news.

A new tax year means new opportunities – Simon Read

To help you get the most from your finances, we regularly bring you a column from Simon Read, a personal finance expert. In this issue, Simon discusses how the new tax year can bring new opportunities.

March’s Lending Impact and Borrower Stories

In case you missed it, here’s last month’s post. In March’s lending impact we met Michaela, the founder of Arapina Bakery, in our latest case study video.

By lending to businesses, your capital is at risk.

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

Culture shifts and funding boosts – March industry news

How Funding Circle is keeping the little guys in the loop – City AM

Up until now, finance companies have typically been viewed as dull and corporate, but we’re pleased to see that this perspective is changing. Technology has sparked a culture shift within financial services, bringing enthusiasm, passion and fun back into the workplace. As our co-founder James Meekings says, “When we think about the people we hire, it’s all about energy.” Fostering an empowering culture and staying true to a set of values is key to a successful business, and is something we are firm believers in at Funding Circle.

China could snatch the crown of FinTech capital, Britain is warned – The Times

Talking about the FinTech sector more broadly, the chancellor Philip Hammond recently told an industry conference that the UK was the “global capital of FinTech” and that the emerging industry contributes £7 billion to the economy. Mr Ramsden of the Bank of England added “The UK can’t afford to be complacent even with London’s pre-eminent position, commercial advantage must be constantly worked for and renewed.” As well as boosting the economy, FinTech companies are creating new opportunities for investors, consumers and businesses. Whether you want to transfer money overseas, get a faster loan or a better return on your investment, these platforms are making such services quicker and easier to use.

FT City Network transcript: the outlook for ‘Global Britain’ – Financial Times

As well as changes in technology, trade partnerships play a crucial role in creating opportunities for businesses. Looking ahead to a post-Brexit world, there will be a lot of excitement about new global partnerships we can build in distant lands. In the long-term these could be very beneficial, but for small businesses who depend on exporting, their greatest opportunities in the short term will continue to lie with our European neighbours. Small businesses do not typically have the time or resources to form long-distance trading partnerships. Consequently, access to fast, fair and affordable finance will be critical to taking advantage of the opportunities exporting can bring.

Small firms say no to bank loans – The Times

Another shift we’re seeing across the UK is the number of businesses that are turning away from banks for financial support. Research suggests that only one in three businesses indicated a willingness to borrow finance in 2017, down from almost half in 2015. However, it’s hugely positive to see the increased amount of innovation and choice being brought to the market thanks to the emergence of online lending. These platforms are helping small businesses  seize growth opportunities, hire more staff and go even further.

Innovations to utilise your tax allowance – City AM

Finally, we’re really excited to announce that the Funding Circle ISA is now available to all investors. This will allow investors to make the same attractive returns tax-free, helping them better provide for their future while helping businesses get the funds to thrive. As with the Classic account, there are two investment options to choose from: ‘Balanced’, for a projected return of 7.2 per cent; and the lower-risk ‘Conservative’, for a projected return of 4.8 per cent. For more information on the Innovative Finance ISA (IFISA) check out this article in The Times or visit our ISA page.

News

Your April Review – Insight and Analysis

In March, you and other investors lent over £123 million to UK businesses, allowing them to achieve their business goals. Dive in below for your monthly analysis.

Last month, you helped over 1,800 UK businesses grow and take new opportunities — thank you for your continued support! Together we can continue to drive energy into the UK economy.

How Funding Circle is keeping the little guys in the loop City A.M.

“When I step into the lively hive that is Funding Circle’s office, it’s a breath of fresh air” says Katherine Denham, writer at City A.M. This article highlights our culture, our team and how our investors are supporting thousands of small businesses across the county.

These graphs show the most recent activity on our platform.

You’ve helped more than 10,500 small businesses access finance in the last 6 months…

 

Totalling over £701 million lent

March 2018 sector breakdown

Amount lent to each sector

March 2018 regional breakdown

Amount lent to each UK region

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 29th March 2018  For further information on why Funding Circle defaults loans you can read our FAQ here.

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

Up next in April 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 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.

March’s Lending Impact and Borrower Stories

In this month’s lending impact, we bring you our latest case study video featuring an award-winning bakery. We’ve also got your Easter weekend covered, with five booming businesses who can help you have a great weekend. Dive in below.

We’re pleased that so many of you are already benefiting from tax-free returns with the Funding Circle ISA. Thanks to your support, we can continue to help businesses take opportunities, create new jobs and drive energy into the economy.

Trustpilot quote of the month

“When others turned their back, Funding Circle helped us turn our dreams into reality. Thanks to their trust in us we are now able to expand our business and move things forward. We can’t thank them enough. If you wish to fulfil your business ambitions then there’s only one place to go, FUNDING CIRCLE!”


In January we introduced Michaela, the founder of healthy lifestyle bakery, Arapina. Originally from Crete, Michaela grew up eating natural and healthy home cooked food. After moving to London, Michaela’s passion for food led her to trade in food markets in 2013. She began with one single product – the Arapina chocolate cake – but as demand kept growing so did their menu. In May 2017, Arapina accessed finance through Funding Circle to expand their business and have since doubled their turnover. Watch the case study video to learn more about their exciting journey.

Make the most of your Easter break with friends and family

The long Easter weekend is nearly here! Here are five Funding Circle borrowers who can help you make the most of the long break. From visiting a chocolate factory to feeding the farm animals, there’s something for everyone. All of these businesses were able to flourish thanks to your support.

February’s Lending Impact and Borrower Stories

In case you missed it, here’s last month’s post. In February’s lending impact we met Jake, the founder of Bristol Bicycles. Additionally, we announced that the University of Huddersfield has lent to over 2,000 UK business through our platform. Finally, we listed five Funding Circle borrowers to keep the Winter Olympics spirits high.

Up next

At the beginning of April we’ll publish our Insights and Analysis blog to review March’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 suggestions we’d love to hear them.

Enjoy lending, the Funding Circle team

Healthy treats for everyone, thanks to your support

Michaela is the founder and owner of award-winning healthy lifestyle bakery, Arapina. The bakery focuses on reinventing Mediterranean cooking, specialising in free from and guilt-free treats.

After finishing university, Michaela went straight into work. It wasn’t long before she became bored and found herself dreaming about running her own business. Being an avid home baker herself, Michaela began trading in food markets in 2013 with one single product – the Arapina chocolate cake. Her delectable treat was an instant hit, and she started to receive requests from wholesalers. Demand kept growing and there quickly became a need to relocate into a larger premises. Shortly after, they moved into an industrial kitchen between Greenwich and Deptford.

The bakery was minimal and there was a need for funding to refurbish the premises. Michaela came across Funding Circle through an advert on social media and decided to take a loan in May 2017. “I found that I could communicate with them. They understand the mindset of an entrepreneur and that really helps” she said. Since receiving funds from Funding Circle investors, Arapina have doubled their turnover. “Without them we wouldn’t be in the position we are today”.

In this short video, meet Michaela and discover more about the exciting evolution of Arapina.

Are you interested in lending to businesses like Arapina?

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 and 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.

Make the most of your Easter break with friends and family

The long Easter weekend has arrived! If you’re stumped for things to do, we’ve pulled together a list of Funding Circle borrowers to help you make the most of the break.

Visit a chocolate factory

5 years ago NOMNOM moved into an abandoned chocolate factory in South West Wales. They found an extraordinary collection of chocolate moulds, and have been steadily turning them into hand-painted sculptures of edible art. At the old factory they now offer a range of experiences to go with their treats, including workshops to design, fill and paint your own chocolate mould. For something a little more special, indulge in their 5 course Easter feast or stay the night in the farm house. NOMNOM has borrowed £176,000 across multiple loans since 2016 to continue their growth.

Embark on a countryside walking tour

Like Christmas, Easter wouldn’t be complete without an unnecessarily long family walk. But are you bored of your usual route? Check out Shepherd’s Walks for a superb collection of guided walks, including in Northumberland and Cumbria. If guided tours aren’t your thing, purchase a handheld navigator with GPS and determine your own route in an area of your choice. Since July 2015, Shepherd’s Walks have borrowed £108,000 across 3 loans to keep up with company growth.

Feed the farm animals

If you find yourself in Leicestershire for the Easter break, head to Little Jack’s Farm in Bottesford. The family run business includes a children’s farm and a garden centre – fun for all the family. At the farm, you can feed a range of animals including sheep, rabbits and ponies. If the weather doesn’t hold up, there’s also an indoor play and crafts area for children. Little Jack’s Farm has borrowed £81,000 across multiple loans to expand the children’s farm and improve their facilities.

Create your own Easter egg hunt

We appreciate that a weekend away isn’t feasible for everyone. Instead, build the excitement at home by creating your own Easter egg hunt in your garden or nearby park. D&D Chocolates specialise in chocolate and confectionery for people with allergies to dairy, gluten and nuts. They also supply to hospitals and clinics so that children don’t miss out on a chocolate Easter egg. D&D Chocolates needed to purchase a larger chocolate moulding machine and a walk in refrigeration room to keep up with interest in their dairy free chocolate. Since September 2014, they have borrowed £24,000 across two loans.

Get your garden ready for Spring

Perhaps indulging in copious amounts of chocolate over a 4 day weekend isn’t your thing. Now it’s officially Spring (and about time too!) make sure your garden looks the part. Gardening Express has a great online store, with the perfect selection of Spring Flowering Bulbs to brighten up your flower beds. To boost seasonal buying power and cash flow, Gardening Express borrowed £157,900 in April 2016.

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. Not covered by the Financial Services Compensation Scheme.

 

Small businesses diversify funding. February industry news

Small businesses look to specialist lenders for loans – Financial Times

According to recent research by the British Business Bank, small businesses are diversifying their sources of funding away from the banks and seeking support from other avenues, such as online lending platforms. This shift shows that there is much more choice for available for small businesses today than there was only a few years ago, which is excellent to see. Business can now access fast, affordable finance online in a matter of days, without even leaving their homes. Read more about the report in the Telegraph.

Banks stress-test themselves but don’t say how they’ll support business – The National

Another recently published report, the Scottish Business Report, shows that little information is available on how banks are planning to support their small business customers post-Brexit. The report also looks at how bank net lending (which is total lending minus repayments) has significantly dropped following the referendum. In 2017, 30 of the UK’s largest banks lent £679 million to small businesses on a net basis, whilst investors at Funding Circle alone lent £600 million. This encouraging growth wouldn’t be possible without to your continued support, so thank you!

2017 was a record year for UK fintech investment – City AM

There was record venture capital investment in UK FinTech in 2017 with £1.3 billion invested in companies working in financial technology. This represents a rise of 150 per cent since 2016 which is a bigger increase than either the US or China. Globally, two of the biggest deals were for Transferwise and Oaknorth, both UK firms. Funding Circle, Interactive Investors and Monzo made up the rest of the top five biggest deals in the UK. This is encouraging as it shows the UK shaking is off concerns of a Brexit slowdown.

University of Huddersfield Lends to More Than 2,000 UK Small Businesses – Crowdfund Insider

In 2013, the University of Huddersfield became the first University to lend directly to businesses through a lending platform – and it continues to lead the way in this area today! Since then, the University has gone on to support over 2,000 UK small businesses through Funding Circle, including Ushiwear, a British clothing brand. Launched by husband-and-wife team Neil and Jilly Kapusi, the passionate duo were able to build on their success and go for growth after accessing finance through the platform. Read more on our blog.

The Sunday Times Best 100 Companies – The Times

To finish up, we were delighted to be named 16th in The Sunday Times Best 100 Companies. We’ll leave it to our UK MD and co-founder, James Meekings, to summarise: “Even though we now have 800 employees, we still feel like a small business. We still push for opportunity and for people to be creative.”

Your March Review – Insight and Analysis

Last month you and other Funding Circle investors lent over £113 million to UK businesses to help them grow and develop. Dive in below for your monthly analysis.

We’re also very proud to announce we are 16th in The Sunday Times 100 Best Companies to Work For 2018. You can see the full list here.

In February, you and other investors helped over 1,700 UK businesses take new opportunities and reach their goals — thank you for your continued support!

Meet our Collections and Recoveries Team

Our aim at Funding Circle is for you to earn stable returns when lending directly to businesses. Dive into our Q&A with Andrew Jackson, Head of Collections and Recoveries in Europe, to find out how the team has evolved over the years to ensure the best possible outcome for you and other investors.

These graphs show the most recent activity on our platform.

You’ve helped more than 10,200 small businesses access finance in the last 6 months…

Totalling over 678 million lent

February 2018 sector breakdown

Amount lent to each sector

February 2018 regional breakdown

Amount lent to each UK region

LoansDefaultedLastWeek

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 1st March 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 March we’ll be looking at the impact your lending is having on the UK economy. We’ll also bring 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 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.

Meet the Collections and Recoveries team, who help keep your returns healthy

At Funding Circle our aim is for you to earn stable returns by lending directly to businesses. With any type of lending, your capital is at risk and it’s normal for some businesses to be unable to repay their loans. We call this bad debt, and we expect a certain percentage of it to occur each year.

When a business falls behind with their repayments, our Collections and Recoveries team will work closely with them to achieve the best possible outcome for investors. We spoke with Andrew Jackson, who heads up the team, to find out more about how Collections and Recoveries have evolved over the past few years.


Andrew joined Funding Circle in 2013

Hi Andrew, thanks for speaking with us today. A lot has changed since we brought Collections and Recoveries in-house in early 2014.  What does the team look like now?

In the beginning it was just a part-time colleague and myself handling everything. Now we have more than 20 people in five specialist teams:

  • The Loan Servicing team deals with borrowers who are on time with their repayments, but may have queries or requests such as asking for statements of account or settlement figures.  
  • The Business Advisory team carries out portfolio monitoring on the whole of the loan book. They look for warning signs and work with borrowers to find ways to keep payments on time.
  • The Collections team deals with missed payments. They know as soon as a direct debit is cancelled, or 3 days before the due date if a direct debit bounces.
  • The Recoveries team deals with any loans where the borrower or guarantor has entered a formal insolvency process, or that are defaulted.  
  • Last but by no means least, the in-house Recoveries Litigation team carries out our legal work, with the help of an external panel when required. Bringing litigation into my team in 2016 enabled us to work faster and cheaper in commencing bankruptcy proceedings, obtaining security and commencing legal action.

We also work closely with external tracing agents, private investigators, surveyors, insolvency practitioners, turnaround experts and lawyers.

How has the approach of the team changed since 2014?

In the early days we were testing out new approaches and ideas, which set us apart from the usual strategies taken by banks. We found our approach seemed to work much better than industry expectations, and resulted in lots of positive feedback as well as recovering more money for investors.  

You mentioned your strategies are working? What results have they had?

We’ve seen exceptional performance over the past few years. Moody’s (the ratings agency) have published reports suggesting that we should get 30% lifetime recovery on our asset class*. However, we have seen significantly higher results, and we predict that will continue. Over the last few years, investors have consistently earned returns on average between 6-7% per year after fees and bad debt.

The difference with Funding Circle is that we don’t give up on borrowers simply because they are going through a rough patch. Entrepreneurs are a tenacious bunch. They learn from their mistakes, get back on their feet, and start new businesses – and it is from those new ventures where we see a significant portion of our recoveries. I think businesses understand this.

When we explain our policies to them they often agree that they are fair – even those who we believe are not being as cooperative as they could be. When we explain to them why we have reached that conclusion they tend to see things from our perspective, and then work alongside us in a much more open and honest way.

Thanks Andrew, we appreciate you taking the time to speak with us!

You can learn more about how the Collections and Recoveries process works at Funding Circle with the blog posts below:

Bad debt, defaults and why not to be afraid of them

How our collections process works (part 1)

How our collections process works (part 2)

How long does it take to receive recoveries?

Alternatively, if you have any questions please feel free to get in touch.

Enjoy lending,

The Funding Circle team

*Frank J. Faboozi, Handbook of Finance, Volume 1: Financial Markets and Instruments: v. 1, (J. Wiley & Sons, 2008)

February’s Lending Impact and Borrower Stories

In this month’s lending impact, find out how our partnership with Huddersfield University has helped UK businesses grow and develop. Next, meet the founder of Bristol Bicycles in our case study video and finish by discovering five Funding Circle businesses to keep you in the winter Olympic spirit.

GreatMonthFor

The University of Huddersfield has lent to over 2,000 UK business through its partnership with Funding Circle. In 2013, the university became the first to lend directly to businesses through the platform.

The partnership has created many opportunities for students through entrepreneurship scholarships. One of the many businesses to benefit from the university’s lending is Ushiwear, a British clothing brand owned by husband and wife, Neil and Jilly Kapusi. Read more on our blog.


Meet Jake, the founder of Bristol Bicycles. Ten years ago, Jake launched his own business, offering an affordable and high quality bicycle workshop. A few years on, Jake began designing and manufacturing his own line of bicycles and in 2015 launched Bristol Bicycles.

To support the growth of his business, Jake received expert coaching from Gary, a Business Coach at ActionCOACH. Having worked with Funding Circle for over 18 months, Gary recommended finance through Funding Circle to help boost cash flow and expand Bristol Bicycles further. Watch the case study video to find out how this partnership has allowed Jake to achieve his business goals.

Get into the Olympic spirit!

Last Sunday marked the end of the 2018 Winter Olympics, but the fun doesn’t have to stop there! We’ve put together a list of five Funding Circle borrowers to keep your spirits high. From synthetic ice rinks to ski and snowboard gear, all of these businesses were able to expand thanks to your lending. Dive in here.

January’s Lending Impact and Borrower Stories

In case you missed it, here’s last month’s post. In January’s lending impact we introduced the founder of Arapina and listed five businesses to help you stay in shape in 2018.

Up next

At the beginning of March we’ll publish our Insights and Analysis blog to review February’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 suggestions we’d love to hear them.

Enjoy lending, the Funding Circle team