The Funding circle

[SamWhiting12]

Just wondering whether anyone has any experience of this funding circle or any other similar companies. If legitimate it looks like a great place to invest or take out business loans. Hopefully it will be of some use to people on here.

 

https://www.fundingcircle.com/homepage

[skyhuck]

I am currently going through the process of borrowing through these guys, got to say they are brilliant. Once they have three years accounts they quickly decide if your approved or not.

 

Once approved you are given a risk rating of A B or C, A being best, then your loan is listed and investors bid to lend to you, those prepared to take the lowest return take preference. You can chose to take the lone as soon as its filled at the rate its first filled at(mine took about 20minuets to fill) or you can let the auction run for up to 7 days, over this time more bids are placed and you interest rate can fall.

 

Watching the rate fall is very addictive, the whole process has been so much better than dealing with a bank and I much prefer the idea of my interest going to individual investors rather than a bank.

[SamWhiting12]

Ah that's interesting to hear.

 

When I looked at it, it looked to good to be true (and the amount you needed to invest were too high for me) so I never looked any further.

 

I am guessing they are doing well for themselves now as I am seeing them advertise on TV.

 

How much better are the business rates compared to the banks?

[skyhuck]

Ah, so you were looking to invest rather than borrow?

 

As a borrower you get somewhere between 6% and 14% I believe, but there are no arrangement fees and its fixed.

[scraggs]

Looked like an insecure and pain in the backside way of investing to me

 

"Investment through Funding Circle involves lending to small and medium sized businesses, so your investment can go down as well as up."

[skyhuck]

Looked like an insecure and pain in the backside way of investing to me

 

"Investment through Funding Circle involves lending to small and medium sized businesses, so your investment can go down as well as up."

 

Most investments can go either way.

 

The thing with this is you spread your risk, you need only put £20 in any one loan, so your chances of losing are very much reduced.

 

If you deposit into a savings account your pretty much guaranteed to loose, as it won't keep up with inflation.

[Pete Hart]

If you deposit into a savings account your pretty much guaranteed to loose, as it won't keep up with inflation.

-----------------------------------

 

Exactly. Well said.

[SamWhiting12]

Ah, so you were looking to invest rather than borrow?

 

As a borrower you get somewhere between 6% and 14% I believe, but there are no arrangement fees and its fixed.

 

Yer had a bit of money to invest, but could also be handy if ever I needed to borrow.

 

You'll have to let us know how you get on with it