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Funding Circle pass £150million in loans
Funding Circle have now arranged £150million in P2P loans for UK businesses. This is a phenomenal achievement for a company that only passed the £100million mark in the second quarter of 2013.
Funding Circle have also raised their minimum lending rates. At P2P money we still believe lenders are unaware what their actual returns will be after fees, taxation and estimates bad debt. Here is a summary of net returns after these deductions:
|Risk||New Minimum Interest Rates|
|Gross||Net (20% tax)||Net (40% tax)|
Actual returns will be more or less than these figures depending on how much bad debt a lender encounters. Funding Circle is still performing well compared with its bad debt estimates, however this data may be skewed due to the rate of increase in Funding Circle's loan book as a lot of these loans won't have been around long enough to go "bad".