Funding Circle - become a lender

Chicken #16 · 12 May 2011 at 14:15

Hi,

I've read about this company on the BBC site today: Funding Circle

http://www.bbc.co.uk/news/business-13313742
http://www.fundingcircle.com/?utm_nooverride=1

It looks like you put your money in and they loan it to small companies in need but your money is the cash at risk, not theirs. They pay a reasonable rate of interest (about 8% minus 1.25% fees) and alledge that the risk is medium. Is anyone using this or put their money in?

Reading it I was quite tempted.

moss · 12 May 2011 at 14:16

Sounds a little like Zopa, but riskier?

Russinating · 12 May 2011 at 14:17

There's got to be less riskier ways of making an 8% off up to 75k.

Deleted member 77746 · 12 May 2011 at 14:24

So if I borrow money and then don't pay it back what will happen? More people will loose out rather than just 1 person as the cost is spread over more, except more people may loose out here.

SuperBOB · 12 May 2011 at 15:22

Seems to be a few of these cropping up the last couple of years. I have a loan from Zopa & would recommend them (infact I can get a referra.... anyway)

6.75% is quite good at the moment, particularly if there isn't a minimum investment.

iviv · 12 May 2011 at 15:29

I loaned out some money a few years ago with Zopa, its slowly trickling back in though. Only sent £100 out though, could have made more in interest with more, but there you go. Better return than banks or ISAs can provide.

ps3ud0 · 12 May 2011 at 15:47

Whats Zopa and is it safe? And whats the catch? Like the sound of better than ISAs

ps3ud0

platypus · 12 May 2011 at 15:49

ps3ud0 said:
Whats Zopa and is it safe? And whats the catch? Like the sound of better than ISAs

ps3ud0

It's a sort of community based lending/borrowing site. They credit check people pretty strictly so if you're wanting to invest money it can be a reasonable place to earn some interest. I have lent £1,000 out there myself but wouldn't put more into it.

It's also great because it ignores the banks.

Liquiduk · 12 May 2011 at 15:52

Chicken #16 said:
Hi,

I've read about this company on the BBC site today: Funding Circle

http://www.bbc.co.uk/news/business-13313742
http://www.fundingcircle.com/?utm_nooverride=1

It looks like you put your money in and they loan it to small companies in need but your money is the cash at risk, not theirs. They pay a reasonable rate of interest (about 8% minus 1.25% fees) and alledge that the risk is medium. Is anyone using this or put their money in?

Reading it I was quite tempted.

This thread makes me feel uncomfortable

.

Biohazard · 12 May 2011 at 15:56

platypus said:
It's also great because it ignores the banks.

In what respect?

platypus · 12 May 2011 at 15:58

Its not a loan from a bank. Or is that not obvious?#

Edit: And as an investor on Zopa I get a pretty good amount of interest, rather than the insultingly low interest rates high street banks offer.

Russinating · 12 May 2011 at 16:00

platypus said:
Its not a loan from a bank. Or is that not obvious?

He means in what respect is it great, I assume.

platypus · 12 May 2011 at 16:02

Russinating said:
He means in what respect is it great, I assume.

Anything that challenges the monopoly banks have is great, as far as I'm concerned. Obviously this isn't going to topple any bank, but it's a start. And I like the idea of social lending.

Biohazard · 12 May 2011 at 16:03

platypus said:
Its not a loan from a bank. Or is that not obvious?#

Cosimo · 12 May 2011 at 16:06

platypus said:
Its not a loan from a bank. Or is that not obvious?#

Edit: And as an investor on Zopa I get a pretty good amount of interest, rather than the insultingly low interest rates high street banks offer.

Why won't you risk more than £1000?

Biohazard · 12 May 2011 at 16:15

simulatorman said:
Why won't you risk more than £1000?

Is it not obvious?

platypus · 12 May 2011 at 16:17

simulatorman said:
Why won't you risk more than £1000?

A few reasons. It's a fairly slow return, and most of our savings are going into a deposit account at the moment.

platypus · 12 May 2011 at 16:17

Biohazard said:
Is it not obvious?

You really are one of the most tiresome posters on these forums. Do give it a rest old chap.

muon · 12 May 2011 at 16:18

Don't most startups go bankrupt?

How would you diversify the risk...

platypus · 12 May 2011 at 16:18

ghost101 said:
Don't most startups go bankrupt?

How would you diversify the risk...

Funding Circle claim they don't lend to start-ups.