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Summary

Accepted loans £265,433,140


Loan parts trades £56,697,219


Average return*: 6.1%
(after fees and bad debts, but before tax)

What is the average return and how is it calculated?

* This is the weighted average return across all investors lending for 180 days or more through Funding Circle over an annualised period. It includes all earnings and is calculated after fees and bad debt but before tax. Investment through Funding Circle involves lending to small and medium sized businesses so your investment can go down as well as up. Remember, past returns are not necessarily a guide to future returns. Data correct as of 19 February 2014. See the full calculation here.

Our gross interest rates

The chart shows the minimum, weighted average, and maximum simple interest rate bids that have been accepted on loans at Funding Circle.

These are the interest rates achieved by investors before fees and bad debts. Remember, you are lending to businesses so your capital is at risk.

You can use the dropdown menu to change the number of loans included.

This data is updated daily.

Our marketplace performance: bad debt levels

Here you can keep up to date on the full history of bad debts and compare these with the estimated lifetime bad debt levels at Funding Circle. Please note, that the C risk band was introduced in October 2011 and C- in July 2013.

% A+ A B C C- Total
Current bad debt % 0.9% 0.9% 2.1% 1.4% 1.7% 1.4%
Estimated lifetime bad debt % 3.3% 3.0% 4.6% 6.6% 10.5% 4.8%

The current bad debt is the percentage of all Funding Circle loans in default which have not been repaid. This data is updated daily.

Estimated life time bad debt is the percentage of all Funding Circle loans which are not expected to be repaid over their total lifetime (remember we offer 6, 12, 24, 36, 48 and 60 month loans).

For example, for every £1000 of loans in the A+ risk band we estimate that there will be around £30 of bad debts over the life of the loans.

The bad debts could happen at different points throughout the lifetime of the loan so the annualised impact could vary.

Incorporating bad debts into your lending decisions

As part of lending to small business, it’s important to remember that a percentage will be unable to repay their loan, because something significant changes in their business.

You should consider this percentage when deciding the gross interest rate you’d like to bid to businesses.

To help with calculating, you can use these estimated annual bad debt rates as a guide to what to expect on a year-to-year basis.

Simply deduct the below estimated bad debt percentage from your headline yield (ie, interest rate offered to the business) less the 1% Funding Circle annual servicing fee to calculate your expected net return after fees and bad debt, but before tax.

% A+ A B C C- Total
Estimated annual bad debt % 0.6% 1.5% 2.3% 3.3% 5.0% 2.3%

Investor returns after fees and bad debts by level of diversification

Below is the latest distribution of returns for investors by different levels of diversification: for those lending to at least 100, 50 and 10 businesses with a maximum of 1%, 2% and 10% of their lending to any one business, respectively. 71% of investors that are lending to at least 100 businesses (with a maximum exposure of 1% of their total lending to any one business) have earned more than 6% average return after fees and bad debts per year*. Past performance is not necessarily a guide to future performance. This data is correct as at 19 February 2014.

Investors lending to at least 100 businesses and a maximum exposure of 1% of the total amount lent to any one business
Investors lending to at least 50 businesses and a maximum exposure of 2%
Investors lending to at least 10 businesses and a maximum exposure of 10%
* The returns shown are based on the ~19,700 investors who have been lending for at least 180 days (75% of all active investors) and have been at the stated level of diversification for at least 75% of the days they have been lending for. It includes all earnings and is calculated after fees and bad debt but before tax. Investment through Funding Circle involves lending to small and medium sized businesses so your investment can go down as well as up. Remember, past returns are not necessarily a guide to future returns. Data correct as of 19 February 2014.
See the full calculation here.

Our marketplace performance: in detail

The table below shows the current performance of all loans at Funding Circle. This data is updated daily.

Amount in pounds (£) A+ A B C C- Total
Loans originated 28,903,100 83,002,420 73,050,980 65,829,740 13,805,380 264,591,620
Principal repaid 11,005,096 22,347,832 20,407,744 16,281,150 1,199,616 71,241,438
Loans outstanding 17,601,978 59,708,863 50,682,915 48,519,442 12,367,331 188,880,528
On time 17,421,822 59,011,801 49,694,362 47,733,975 12,117,977 185,979,936
Late < 30 days Help_grey 50,002 387,765 746,127 392,615 159,354 1,735,862
Late >= 30 days Help_grey 63,981 291,225 195,693 219,206 90,000 860,106
Late >= 90 days Help_grey 66,173 18,073 46,733 173,647 - 304,625
Recoveries Help_grey 37,921 163,559 394,204 118,334 491 714,509
Bad debt Help_grey 258,106 782,186 1,564,137 910,814 237,941 3,753,185
Loan count A+ A B C C- Total
Loans originated 452 1,439 1,358 1,195 293 4,737
Fully repaid loans 69 139 122 76 2 408
Loans outstanding 372 1,263 1,175 1,089 287 4,186
On time 366 1,240 1,152 1,072 281 4,111
Late < 30 days Help_grey 2 14 14 9 5 44
Late >= 30 days Help_grey 4 9 9 8 1 31
Late >= 90 days Help_grey 2 1 4 6 - 13
Recoveries Help_grey 6 14 29 11 1 61
Bad debt Help_grey 3 22 28 13 3 69

Registered lenders can download the entire Funding Circle loan book.