Anyone used Funding Circle.com?
Discussion
I went in to FC and Zopa about the same time. I'm no longer in FC. I decided that the ease with which corporate borrowers can do a phoenix bankruptcy and start up again next day is not something I wanted to support. This is not FC's fault of course, it is a function of UK bankruptcy laws. Zopa's individual borrowers seem to be more reluctant to go the IVA route, and/or their applicant credit checking is better.
I had no problems whatsoever with FC as a company or the service or the process and website. If you want to do the full proper peer-to-peer risk model and only have twenty or so pounds in with each borrower, it can take a long time to get a good sized loan book running at sensible rates.
I had no problems whatsoever with FC as a company or the service or the process and website. If you want to do the full proper peer-to-peer risk model and only have twenty or so pounds in with each borrower, it can take a long time to get a good sized loan book running at sensible rates.
Dick Dastardly said:
I've been on FC as an investor for a while. Seems to work well and its a fun way to earn a pretty decent return. Are you asking as an investor, or looking to borrow?
I have been looking at becoming an investor on these kinds of websites for a while, could you tell a little more detail as regards a 'pretty decent return'?For example, from a 10k investment, timeframes and profit etc would be a great inside information before I take the plunge (also may help me persuade the OH!
)I am getting a 7-8% return on my money. You get to decide how much of a return you want, so could choose 10-12%, though it would take a while to happen as the borrowing businesses choose to accept your terms and you wouldn't be top of the pile.
Your money is in there for a few years, as the business loans are typically 3+ years in length. There is a marketplace where you can sell the debt and cash in earlier for a little less of a return, if you need to. Either way, it's a lot more than the bank and you get to read through business plans and choose where you place it (or you can set it on auto-pilot), which is interesting to someone like me.
You can sign up for free, so if you are seriously considering it, see how it all works before putting some cash in. I stuck a couple of grand in but am considering sending over a lot more from my bank savings account.
Your money is in there for a few years, as the business loans are typically 3+ years in length. There is a marketplace where you can sell the debt and cash in earlier for a little less of a return, if you need to. Either way, it's a lot more than the bank and you get to read through business plans and choose where you place it (or you can set it on auto-pilot), which is interesting to someone like me.
You can sign up for free, so if you are seriously considering it, see how it all works before putting some cash in. I stuck a couple of grand in but am considering sending over a lot more from my bank savings account.
I was expecting between 7-11% tbh, obviously I appreciate the risk increases with the gains.
I would be involved on a similar level to you, and like yourself would find it interesting, somewhat like a hobby
I will be returning to the UK in May and looking for something to do with my money, as there is almost no interest to be made in your average savings account, and vs fixed term bonds it gives a few more points return.
I will spend the next few months looking into it, and then probably put 5k in there and so what comes of it to start with. But now I have had some real world experience given to me, it sends a lot more confidence my way. I am always a little sceptical about the 'testimonials' on those kind of websites.
Again thanks for your insight
I would be involved on a similar level to you, and like yourself would find it interesting, somewhat like a hobby
I will be returning to the UK in May and looking for something to do with my money, as there is almost no interest to be made in your average savings account, and vs fixed term bonds it gives a few more points return.
I will spend the next few months looking into it, and then probably put 5k in there and so what comes of it to start with. But now I have had some real world experience given to me, it sends a lot more confidence my way. I am always a little sceptical about the 'testimonials' on those kind of websites.
Again thanks for your insight
Steer clear IMO. Im not down yet, but its getting close.
A+ rated and 8%+ bids only.
Too many shysters like the solicitor who went into liquidation only to buy back the assets under a new company a month later leaving of course the debts behind.
People are much happier to walk away from Ltd co debts than personal debts. The risk is not costed appropriately. IMO you want well over 10% nominal, but the market is looking at 4%. Madness. I picked up some at 8% a year or so back, but as above. Im packing up and pulling out over time.
A+ rated and 8%+ bids only.
Too many shysters like the solicitor who went into liquidation only to buy back the assets under a new company a month later leaving of course the debts behind.
People are much happier to walk away from Ltd co debts than personal debts. The risk is not costed appropriately. IMO you want well over 10% nominal, but the market is looking at 4%. Madness. I picked up some at 8% a year or so back, but as above. Im packing up and pulling out over time.
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