Please note, these statistics are correct as of 1 November 2015.
- In the UK:
- 11,000 businesses have borrowed
- Creating an estimated 33,000 jobs*
- More than £890 million lent in total
- Investors include 44,ooo people, the UK government-backed British Business Bank, 16 councils, a university and financial institutions
- ~£50 million lent to small businesses every month
- Marketplace is currently the 5th largest net lender to small businesses in UK
- Average return is 7.2%** after fees and bad debt but before tax
- Average size of investor portfolio is £8,000
- £55 million of net interest earned since launch
- Average loan amount is £60,000
- Businesses can borrow up to £1 million, and up to £3 million for property finance
- ~2% bad debt ratio
- Funding Circle has operations in the UK, US, Germany, Spain and the Netherlands
- Funding Circle launched in the US in October 2013, and Continental Europe in October 2015
- Globally, investors have lent more than $1.5 billion to ~12,000 businesses
- Funding Circle continues to grow by 150% per annum
Morgan Stanley predicts that the global marketplace lending industry will be worth $290 billion by 2020 (base case), and a report by Foundation Capital predicts that it could be worth $1 trillion by 2025.
*Research by Nesta found that on average, a Funding Circle borrower increases headcount by 3 people within 12 months of taking a loan.
** The current estimated return is an estimate of the annual return after fees and bad debts that investors could earn from lending money to businesses seeking loans today. It is calculated by taking the gross interest rate less fees and estimated bad debts that will occur in the future for each of the last 100 loans accepted on the marketplace. The average return is compounded and before tax. The return is updated daily. See the full calculation here.