Funding Circle rebrands itself

February 3rd, 2012
Funding Circle

Funding Circle has launched a new skin and logo for their website after brief testing.  Here is what they said in their latest email:

Welcome to a fresh, new look for Funding Circle. 

We've just launched our brand new website so log on now to see what has changed. We have included some new features and changed the site navigation to make it easier for you to use. We're really pleased with it, and hope you are too, do let us know what you think. All your details including log in remain the same.

 

We also think it looks good, and while we liked the old skin and logo we have to give them full marks.  The colours are clear and distinctive, and the pages are easy to read.  Well done !

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YES-secure publishes default data

January 30th, 2012
YES-secure

I was pleasantly surprised to see that YES-secure have now published their loan default data for 2010 and 2011.  I've been busy going through the maths and have double checked the figures, and I can publish the actual lifetime default rates.  This information will be uploaded to the P2P Money comparison of peer-lenders later.

  • The A+ market had £112,860 lent with a total of £25,407.94 of defaults.  The lifetime default rate would be 22.51% against a target of 3.0%.
  • The A market had £56,930 lent with a total of £13,119.91 of defaults.  The lifetime default rate would be 23.05% against a target of 4.0%.
  • The B market had £106,940 lent with a total of £10,913.42 of defaults.  The lifetime default rate would be 10.21% against a target of 6.0%.
  • The C market had £81,840 lent with a total of £3,763.59 of defaults.  The lifetime default rate would be 4.6% against a target of 8.0%.
  • The D market had £67,480 lent with a total of £3,895.19 of defaults.  The lifetime default rate would be 5.77% against a target of 12.0%.
  • The E market had £41,170 lent with no defaults.  The lifetime default rate would be 0.00% against a target of 25.0%.

There seems to be quite a disparity with the default rates, with the lower risk markets experiencing large defaults, and the higher risk markets experiencing fewer or no defaults, although less money was lent.  Again there must be a word of caution with stating lifetime default rates so early on in a loan term as some loans won't be mature enough to have defaulted yet.

The overall bad debt would be 12.22% against a predicted weighted average of 7.96%.

Rates on Funding Circle start to rise

January 25th, 2012
Funding Circle

Lending rates on Funding Circle have started to rise as they now have 33 loan requests running for a total of £1.8 million.  I myself managed to get a loan rate of 13.8% for a B graded company only last week.  If that wasn't incentive enough for new lenders then (as mentioned previously) there are various cashback offers available for both new and current lenders.

Funding Circle offer £500 gift voucher

January 20th, 2012
Funding Circle

Funding Circle are running some more offers to lenders, both new and current.  Lend £5000 or more by 1st March and you will receive a £50 Virgin gift experience voucher.  Lend £10,000 or more by 1st March and you will receive a £150 Virgin gift experience voucher.  Lend £20,000 or more by 1st March and you will receive a £500 Virgin voucher.

However that isn't it.  New lenders are still able to sign-up through P2P Money Cashback and receive a £25 gift voucher if they have lent £1000 or more by 28th February in addition to the above rewards.  If that isn't a good idea to lend money with P2P then I don't know what is !

Good time to be a lender

January 13th, 2012
RateSetter

Following on from the previous post on the January rush, now is a good time to be a lender.  P2P Money would strongly encourage lenders to add a few pounds to RateSetter as rates have been rising to levels not seen since the summer.  RateSetter is the only major peer-lender with a provision fund which protects lenders from modest levels of bad debt.  You can see the effect of this by tweaking the bad debt multiplication factor on the comparison of lending rates and the net rate doesn't change until bad debt rises significantly.  Bad debt on RateSetter is 0.19% as of today and is well below their prediction of <1.4%.