US
CloseA glossary of individual terms can be found towards the bottom of the page.
- LoanClear
LoanClear has confirmed to Funding Circle that the loan performance figures provided on our statistics page are an accurate reflection of the loan data analyzed, using Funding Circle’s own assumptions and stated calculation methodology. Please note that the calculation methodologies used on this page may differ from the standardized analytics provided by LoanClear.
- Amount originated
The total principal amount lent through Funding Circle, either globally or within each individual geography, since Funding Circle launched. Figures are given in US dollars unless stated otherwise.
- Lifetime default rate
The percentage of loans, by loan amount, that have not been repaid. Loans are shown by the year they were taken out. There are some key differences between the Lifetime default rate and other figures shown on this page:
- The lifetime default rate is not a projected figure. It shows the actual default rate for each year of loans and does not include our future estimates.
- The lifetime default rate is not an annualized figure. It shows the default rate of loans over their entire investment period.
- The lifetime default rate does not include recoveries on loans. It only looks at the total amount that businesses were not able to repay when their loans were defaulted. Recoveries will reduce the bad debt experienced by investors.
- Jobs unlocked
The employment supported by outstanding loans at a point in time (in this case the end of December 2017). Oxford Economics, a leading economic consultancy, has estimated the employment impact using our loans under management as the measure of the capital we are providing to businesses in different industries, across the geographies in which we currently operate.
The figure reflects the jobs created and sustained as a result of the portion of businesses’ operations, procurement and wage payments that these loans support.
- Loans under management
The outstanding principal amount of all on-time and late loans in the Funding Circle loanbook, either globally or within each individual geography, as of the specified date. This amount does not include bad debt. Figures are given in US dollars unless stated otherwise.
- Projected bad debt rate
The annualized percentage of loans, by principal amount, that we estimate will not be repaid. Loans are shown by the year they were taken out. The return is shown as a range to reflect that the actual number of businesses who are unable to repay their loans could be higher or lower than estimated.
The projected bad debt rate is calculated by combining the actual bad debt rate experienced as of the date of publication, and our bad debt estimates for the remaining term of loans that have not yet been fully repaid. To provide the range, we take our bad debt estimates for the remaining terms of the loans that have not been fully repaid, then adjust these estimates based on the following assumptions:
- High end of the range - A lower actual default rate, and a higher recovery rate than projected
- Low end of the range - A higher actual default rate, and a lower recovery rate than projected
As loans are repaid, this range will narrow and will be updated from time to time to reflect actual performance.
It can take up to five years for loans to be fully repaid so our estimations may change, for example if macroeconomic conditions change. The projected bad debt rate may be adjusted to reflect this.
- Projected gross yield
The projected gross yield is an annualized estimate of the average interest rate, before fees and bad debt, paid by businesses. Loans are shown by the year they were taken out. The projected gross yield combines the actual gross yield received to date for each year, and the estimated gross yield for the remaining term of loans that have not yet been fully repaid.
The projected gross yield may change over time, such as when loans are repaid early, are unable to be repaid, or when new loans are taken out over the course of a year.
- Projected annualized return
Our current annualized estimations for how loans will perform. The projected annualized return shows the return, after fees and bad debt, that loans are currently estimated to achieve. Loans are shown by the year they were taken out. The return is shown as a range to reflect that the actual number of businesses who are unable to repay their loans could be higher or lower than estimated.
The projected annualized return is calculated by combining the actual annualized return received to date, and our latest return estimates for the remaining term of loans that have not yet been fully repaid. To provide the range, we take our latest return estimates for the remaining terms of the loans that have not been fully repaid, then adjust these estimates based on the following assumptions:
- High end of the range - A lower actual default rate, and a higher recovery rate than projected
- Low end of the range - A higher actual default rate, and a lower recovery rate than projected
As loans are repaid, this range will narrow and will be updated to reflect actual performance.
It can take up to five years for loans to be fully repaid so our estimations may change, for example if macroeconomic conditions change. The projected annualized return may be adjusted to reflect this.
- Please remember
All figures are updated on a quarterly basis.
These calculations are partially based off estimated figures and actual figures may differ.
The projected gross yield, projected gross return and projected bad debt rate are all provided as annualized figures. This means that the total cumulative yield, return or rate has been converted to represent that figure on an annual, or yearly basis. Data is from Funding Circle.
Glossary
- Actual - performance data experienced as of the date of publication. Actual figures are used to help calculate projected figures.
- Annualized - a figure that has been converted to be represented over an annual, or yearly basis. This is in contrast to a figure which represents a specific point in time, or over a lifetime.
- Bad debt - the potential funds lost by investors due to businesses being unable to repay their loans and will have defaulted. This amount is reduced by any recoveries that are subsequently made.
- Default - a loan is considered to be in default when a business has breached its loan terms and conditions, for example if they have been unable to repay their loan. When a loan is defaulted the remaining principal amount and interest becomes immediately due and is then demanded from the borrower and loan guarantors.
- Estimates - our current expectations for what might happen in the future. Estimates are not guarantees and the actual experience may be different than expected.
- Late - a loan is considered late when a business is behind on their loan repayments. Late loans have not yet been defaulted and are not included in bad debt figures.
- Lifetime - a figure that represents total performance over an entire investment period.
- Loan term - the agreed time frame over which a loan is scheduled to be repaid.
- On time - a loan is considered to be on time when a business is currently up to date with their loan repayments, as of the date of publication, i.e. not late or defaulted.
- Principal - the original amount of funds lent to a business.
- Projected - projected figures combine the actual data experienced by loans as of the date of publication, and our estimates for the remaining terms of loans that have not been fully repaid.
- Recoveries - funds that are recovered on defaulted loans by our Collections & Recoveries team.