Helping more investors build a well-diversified portfolio

At Funding Circle, we want you to earn attractive, stable returns by lending to UK businesses. To help you achieve this, we suggest that investors diversify their portfolios by lending small amounts to lots of different businesses.

We want every investor to benefit from a well-diversified portfolio and have a positive lending experience. As part of this, we have decided to change the minimum amount you can lend to each individual business from £20 to £10.

Helping investors with smaller portfolios diversify

Our automatic tool lends no more than 0.5% of your portfolio to any individual business. This means that if one of the businesses you lend to is unable to repay their loan, only a small amount of your portfolio would be affected. Spreading your risk in this way helps you earn a more stable return.

By reducing the minimum loan part size to £10, more investors will be able to build a well-diversified portfolio. Every new investor who lends £2,000 or more will now lend to at least 200 businesses. Lending just £1,000 (the minimum initial transfer) now allows investors to lend to at least 100 businesses, which we believe provides a strong level of diversification. For example, 93% of investors who have diversified like this for at least a year are earning 4% or more.

Please note your existing loan parts will not be affected and this will only affect new loans you lend to. If you lend more than £4,000 you will see no change as our lending tool will lend more than £20 (0.5% of your portfolio) to each business. By lending to businesses, your capital is at risk.

If you have any questions on today’s news, please don’t hesitate to get in touch.

Enjoy lending,

The Funding Circle team