Funding Circle works with a number of financial intermediaries who arrange finance for their business clients. These include but are not limited to commercial finance brokers, mortgage brokers, accountants and other introducers. If you would like to register as a finance broker for Funding Circle please visit our broker registration page or download an information pack.Register as a Broker
After more information or want join the intermediary mailing list? Email us at email@example.com
“Central Finance has been working with Funding Circle for the past 18 months. During this time we have found their approach to be honest and refreshing compared to some of the more traditional funding avenues. When you take into account the speed, cost and flexibility the Funding Circle offer, it really is a unique facility for the SME in today’s difficult market. The ease of process and superb customer service the team offer further adds to their appeal. At any point during the process we are able to talk to the underwriters direct, which has many benefits for our clients and only increases the likelihood of funding. “
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.