Funding Circle is a legitimate peer-to-peer lending platform that connects borrowers with investors. It has been in business since 2010 and has facilitated over $17 billion in loans. The platform is regulated by the Financial Conduct Authority (FCA) in the UK and the Securities and Exchange Commission (SEC) in the US. Funding Circle has a strong track record of performance, with an average annualized return of 6.7% for investors. The platform also offers a variety of features to protect investors, such as credit checks on borrowers and a secondary market where investors can sell their loans.
Funding Circle: Overview and Business Model
Funding Circle is a leading peer-to-peer lending platform that connects borrowers with investors. It was founded in 2010 and has since become one of the largest and most successful platforms of its kind.
Funding Circle’s business model is based on the idea of disintermediation. In traditional lending, borrowers go through a bank or other financial institution to get a loan. These institutions act as intermediaries, taking a cut of the interest paid by the borrower. With peer-to-peer lending, borrowers can cut out the middleman and borrow directly from investors.
- Borrowers create a profile on Funding Circle and specify the amount of money they need to borrow and the interest rate they are willing to pay.
- Investors browse the profiles of borrowers and choose to lend money to the ones they believe are most creditworthy.
- Funding Circle facilitates the lending process and collects monthly payments from borrowers. It then distributes these payments to investors, along with interest.
Funding Circle makes money by charging a platform fee to borrowers. This fee is typically a percentage of the amount borrowed.
| Loan Term | Interest Rate | Funding Fee |
|---|---|---|
| 12 months | 5.99% – 15.75% | 0.50% – 1.00% |
| 24 months | 6.49% – 15.99% | 0.50% – 1.00% |
| 36 months | 6.99% – 16.24% | 0.50% – 1.00% |
Funding Circle’s Lending History and Performance
Funding Circle is a leading online marketplace for business loans. Since its launch in 2010, the platform has facilitated over £11 billion in lending to small businesses across the UK, US, and Europe.
Key Performance Indicators
- Total loans funded: £11+ billion
- Number of businesses funded: 100,000+
- Average loan size: £40,000 – £500,000
- Loan terms: 6 months to 5 years
- Interest rates: Variable, based on risk assessment
Lending History
Funding Circle’s lending history has been characterized by strong performance and low default rates. Here’s a breakdown of the platform’s lending history from 2014 to 2022:
| Year | Number of Loans Funded | Total Loan Value | Default Rate |
|---|---|---|---|
| 2014 | 1,000+ | £100+ million | <1% |
| 2015 | 5,000+ | £500+ million | <1% |
| 2016 | 10,000+ | £1 billion | <1% |
| 2017 | 15,000+ | £1.5 billion | <1% |
| 2018 | 20,000+ | £2 billion | <1% |
| 2019 | 25,000+ | £2.5 billion | <1% |
| 2020 | 30,000+ | £3 billion | <1% |
| 2021 | 35,000+ | £3.5 billion | <1% |
| 2022 | 40,000+ | £4 billion | <1% |
Customer Testimonials and Reviews
Funding Circle has received numerous positive customer testimonials and reviews from borrowers and investors alike. Here are some examples:
- “Funding Circle made it easy for me to get the funding I needed to grow my business.” – Borrower
- “I’ve been investing with Funding Circle for several years now and have consistently earned a good return.” – Investor
- “The Funding Circle team is always helpful and responsive.” – Borrower
Funding Circle has also been recognized by independent organizations for its customer service. In 2023, the company received the following awards:
- Investment Week Excellence Award for Best UK P2P Lending Platform
- MoneyAge Excellence Award for SME Lending Platform of the Year
| Review Site | Rating |
|---|---|
| Trustpilot | 4.2 out of 5 stars (based on over 1,000 reviews) |
| Google Reviews | 4.5 out of 5 stars (based on over 800 reviews) |
| Reviews.co.uk | 4.9 out of 5 stars (based on over 200 reviews) |
| Accreditation | Verification of |
|---|---|
| ISO 27001:2013 | Robust information security practices |
| PCI DSS | Secure handling of credit card data |
| SOC 1 Type II | Accuracy and integrity of financial reporting |
| SOC 2 Type II | Security, availability, and data privacy |
| LSB Member | Adherence to responsible lending practices |
Thanks for sticking with me on this journey of uncovering Funding Circle’s legitimacy. Keep these insights in mind when navigating the lending landscape. Remember, investing involves risks, so always do your research and consult professional advice if needed. I’ll be here, eagerly awaiting your return, as we embark on more financial adventures together. Stay curious, and I’ll catch you soon!