If you're after a £5,000 - £1,000,000 loan with a 6 month to 5 year term you're in the right place...
“I would just like to say that I have been very impressed with the service of Funding Circle. The site is clear and easy to use. The rate I achieved for my loan is staggeringly low. The speed in which the loan was fully funded was amazing and interesting to watch. Our wedding planning website, UKbride.co.uk can now crack on and expand our sales team across the UK with the loan that Funding Circle has helped us to achieve." UK Bride, E-Commerce Site
Accessing business finance can often be a long and arduous process. Though there may be several options available for businesses; the type of business finance will be dependent on factors such as: the company’s cash flow, whether the company is rich in assets, if the business owners are willing to give away equity, etc.
Your business will need to decide whether it would be more appropriate to apply for a secured or unsecured loan. This is also likely to determine the type of interest rate that you are offered, if your company provides collateral for your business finance, you can expect to pay a lower interest rate. However, some businesses, such as companies in the service sector are less likely to have assets that can be used as security. Even for companies that have assets, it can be considered risky to tie short term assets to long term loans.
Funding Circle supplies unsecured loans, yet the interest rates are still considerably lower than other typical sources of business finance. This means that businesses are not reliant on supplying collateral to secure a low cost loan. Most reasons for applying for a loan will be considered, such as working capital, asset purchase, paying off a bank loan, etc.
Get a low cost loan approved in days.
The net return is a percentage, calculated to show the return investors* have earned through Funding Circle after fees and bad debt, but before tax, over an annualised period.
To calculate it we take the following:
We take the sum of the cashflows for every day the investor has been lending (ie, from day 1 right through to the current day).
This will reflect the outstanding amount lent to businesses, less any bad debts you have incurred during the period
This is the amount of interest you have earned up until the current day but has not yet been paid to you
The above inputs are taken over a given time period so we can calculate the return for each investor, whereby:
We create an annualised return figure ( r ) by calculating this over a 365 day period.
We then use this formula to calculate the net return:
This net return expression is just one way to show the returns investors have made through Funding Circle. We think it is the most useful and accurate way to measure investment performance because it takes into account both our fees and any bad debts but as with many calculations it has some limitations, including:
There are other methods for evaluating historical or potential investment return that you could choose to use instead and you may want to consider these methods as well.
This estimated net return shows you the expected rate after fees and bad debt, but before tax. This calculation takes your bid rate and deducts the 1% annual investor fee and estimated bad debts for this risk band (based on a fully diversified portfolio lending to all businesses within that risk band).
Annualised, estimated bad debts by risk band are:
These estimate are provided a guide only. Actual bad debts vary for each investor. You may incur more or less bad debts than estimated and in lending to businesses, there is the risk that the value of your investment could go down as well as up. Net returns are shown before tax, to read more about tax treatment click here.