The security of the Funding Circle website is subjected to an independent and professional security review several times a year. The security review methodology used is based on best practice as described by the OWASP organisation. OWASP provides web application security guidance and is widely recognised within commercial and government sectors. All independent security professionals are certified in their areas of expertise and we only employ CREST certified companies to perform security audits on our website.
From the moment any information you enter on our website leaves your computer to the time it enters Funding Circle’s system it is encrypted. Funding Circle employs some of the strongest forms of encryption commercially available for use on the Web today. During any transaction, our encryption turns your information into a coded sequence with billions of possible variations, making it nearly impossible for unwanted intruders to decipher. Look for a “closed lock” icon in your browser to confirm if encryption is being used on any Web page you are viewing. Any Web address beginning with “https://...” indicates the page you are viewing uses encryption. The “s” stands for “secured.”
When you log on to create a Funding Circle account, we ask you to create a username, password, and provide answers to three security questions. To securely log on to your Funding Circle account, you are asked to provide your username and password. Passwords are stored in an encrypted form in our systems. You must then enter the answer to one of the security questions. If you suspect that someone has had access to your password or answer to security questions, please contact us immediately here.
Funding Circle’s system will automatically log you off after a certain period of inactivity. This reduces the risk of others accessing your information from your unattended computer.
The 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 return:
This 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 return is your return 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 estimates are provided as a guide only. Actual bad debts vary for each investor. You may incur more or less bad debts than estimated. With lending to businesses, there is the risk that the value of your investment could go down as well as up. Returns are shown before tax, to read more about tax treatment click here.