Amount lent £1,334,383,300

Loan parts traded £247,343,178

Average annual return (all time)
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What is the average return and how is it calculated?

* This is the weighted average return across all investors lending for 1 year 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 is correct as of 31 March 2016. See the full calculation here.

7.1%
(after fees and bad debts, but before tax)

For average annual return by loan origination year, click here.

Latest gross interest rates

The chart shows the latest minimum, weighted average, and maximum simple gross interest rates for loans accepted on the Funding Circle marketplace.

These are the interest rates achieved by investors before fees and bad debts. Interest rates are set by Funding Circle and are based on a number of factors including risk band and term of a loan. What are the rates and how are they set?

You can use the dropdown menu to change the number of loans included. This data is updated daily. Remember, you are lending to businesses so your capital is at risk.

Join the Funding Circle 100 Club

At Funding Circle investors lend to lots of businesses to spread their risk. The Funding Circle 100 Club is a guide for investors to diversify their portfolio and maximise their returns.

100% of investors who have been lending for at least 1 year and lent to 100 businesses equally are currently earning a positive return.

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. 67% 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. This data is based off actual returns for people lending for at least 1 year and does not include future expected losses. Remember, past performance is not necessarily a guide to future performance. Data is correct as of 31 March 2016.

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 21,751 investors who have been lending for at least 1 year and have been at the stated level of diversification for at least 75% of the days they have been lending (42.38% of all active investors). 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. This data is based off actual returns for people lending for at least 1 year and does not include future expected losses. Remember, past returns are not necessarily a guide to future returns.
See the full calculation here.

Managing risk: incorporating bad debts into your lending decisions

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

To help calculate your estimated return (after fees and bad debt, but before tax) you can use the 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 the gross interest rate less the 1% Funding Circle annual servicing fee.

A+ A B C D E Total
Estimated annual bad debt % 0.6% 1.5% 2.3% 3.3% 5.0% 8.0% 1.7%

Bad debt performance

The below graphs highlight estimated lifetime bad debt levels versus the actual performance of loans. The graphs are broken down into six month groups with the exception of 2010/2011 which has a lower amount of lending and has been grouped together for better comparison.

The graphs show that the actual percentage of bad debt levels versus expectations has consistently improved. Data is correct as of 31 March 2016.

Bad debt performance H1 2015 Bad debt performance H2 2014 Bad debt performance H1 2014 Bad debt performance H2 2013 Bad debt performance H1 2013 Bad debt performance H2 2012 Bad debt performance H1 2012 Bad debt performance Q4 2010 and 2011

Current bad debt performance and estimated lifetime bad debt levels

We also publish 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, D in July 2013 and E in July 2015. This data is updated daily.

A+ A B C D E Total
Current bad debt % 0.4% 1.5% 2.5% 3.5% 3.9% 1.7% 1.7%
Estimated lifetime bad debt % 1.1% 3.0% 5.0% 7.3% 11.4% 19.7% 3.9%

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

Estimated lifetime bad debt is the percentage of all Funding Circle loans which are not estimated 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 expect that there will be around £12 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.

Bad debt performance over time

All members of the Peer-to-Peer Finance Association also provide statistics showing figures on non-performing loans and bad debts. Data is correct as of 01 June 2016.

2011 2012 2013 2014 2015 2016
Actual arrears (> 45 days) 0.0% 0.3% 0.2% 0.3% 0.5% 0.0%
Total outstanding balances more than 45 days late but not defaulted, as a percentage of amount lent in the calendar year.
Actual lifetime defaults rate 5.2% 2.9% 4.0% 2.8% 1.0% 0.0%
Total bad debt (defaults less recoveries) over the lifetime of the loans​ as a percentage of amount lent in the calendar year (please note this is not annualised).
Expected lifetime defaults rate 3.2% 4.2% 4.6% 4.4% 3.6% 3.5%
Expected lifetime bad debt​ as a percentage of amount lent in the calendar year. Estimated at origination of the loans. These figures are based on the weighted average of all risk bands of the loans funded in a calendar year. The estimated lifetime bad debt has increased as we have added C, D and E loans over time.
Updated lifetime defaults rate 5.2% 2.9% 4.2% 4.2% 3.6% 3.5%
Forecast lifetime bad debt rate for each year using actual bad debt to date.
Principal repaid 100% 93.1% 77.9% 58.9% 28.3% 4.9%
Principal repaid excluding bad debts as a percentage of amount lent in the calendar year.
Bad Debt fund usage N/A N/A N/A N/A N/A N/A
For platforms using funds to protect investors against losses. Bad debt fund usage (bad debts in year as a % of funds raised in year).

Our marketplace performance: in detail

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

A+ A B C D E Total
Loans originated 459,805,600 372,384,420 245,111,580 174,490,260 67,589,520 14,550,140 1,333,931,520
Principal repaid 144,366,606 147,818,233 104,095,141 81,840,680 25,236,761 1,714,023 505,071,445
Loans outstanding 313,018,757 217,548,774 133,013,660 84,759,801 39,187,849 12,586,028 800,114,871
On time 309,148,382 213,891,062 131,427,172 82,797,147 38,258,341 12,433,011 787,955,116
Late < 30 days 686,484 585,447 805,997 1,069,512 627,795 104,872 3,880,107
Late >= 30 days 3,122,116 3,019,826 546,943 621,938 277,466 48,146 7,636,436
Late >= 90 days 61,775 52,439 233,548 271,204 24,247 - 643,212
Recoveries 485,565 1,603,583 1,907,924 1,773,701 495,557 8,136 6,274,467
Bad debt 1,934,671 5,414,629 6,087,874 6,116,077 2,669,354 241,952 22,464,557
A+ A B C D E Total
Loans originated 4,846 5,603 4,363 3,233 1,389 304 19,738
Fully repaid loans 848 1,229 1,081 878 262 11 4,309
Loans outstanding 3,957 4,186 3,060 2,159 1,037 286 14,685
On time 3,930 4,141 3,014 2,105 1,008 280 14,478
Late < 30 days 9 16 20 25 17 3 90
Late >= 30 days 16 28 19 19 11 3 96
Late >= 90 days 2 1 7 10 1 - 21
Recoveries 24 129 149 121 51 4 478
Bad debt 17 59 73 75 39 3 266

Registered investors can download the entire Funding Circle loan book.

The late figures provided include both small business loans and property finance loans. We are working on splitting out the data on these two asset classes, and more information can be found in the Funding Circle loan book.