funding circle

Fundingcircle’s First Month Figures

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Fundingcircle.com launched on Friday August, 13th. According to figures the company released, the p2c lending service had a good start. Apparently many lenders took advantage of the cashback offer, and immediately after lending sold loan parts to other lenders on the secondary market. Review the following numbers reported by Funding Circle:

  • 11 small businesses have fully accepted loans from Funding Circle lenders totalling 317,000 GBP
  • Funded businesses range from environmental consultancies and recyclers, to restaurants and retailers, and manufacturing and engineering companies
  • Over 1,000 lenders and borrowers have joined
  • 20 loan requests from small businesses have been listed on Funding Circle, with a good number of businesses in the credit underwriting process
  • Monthly interest rates for borrowers range from 7.4% to 10.7%
  • ~10,000 bids have been placed on loan requests
  • ~500 loan parts have been successfully transferred from one lender to another

Funding Circle (Fundingcircle.com) P2C Lending Launch in UK

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Funding Circle has launched it’s peer to company lending service in Britain. As reported by P2P-Banking.com in February the startup received 1.1 million US$. Any UK resident can lend either by individually selecting businesses or by using the autobid feature and spreading the investment over several matching businesses. While loans last for 1 to 3 years FundingCircle – unlike other p2p lending sites – allows lenders to access their money easily: Selling of parts of loans funded to other lenders is possible (secondary market).

In 2010 lenders are not charged any fees to use Funding Circle (in 2011 there will be a 1% annual servicing fee and a 1% sales fee).

All businesses applying for loans are screened by Funding Circle’s underwriters using data supplied by Experian to ensure they are creditworthy. A business may apply for a Funding Circle loan amount between 5,000 and 50,000 GBP. Continue reading →