What Is Happening In Peer-To-Peer Lending - Market Commentary –15th December 2014

Last post: Dec 15, 2014

The Secret Investor reviews the peer to peer lending market 15th of December 2014

Totals lent to date (15th December 2014) Assetz Capital - £50 million plus Funding Circle - £464,877,040 FundingKnight - £9,083,000 FundingSecure - £2,656.828 Lending Works - £4,376,044 Money & Co –  £3 million plus Rebuildingsociety - £4,415,830 ThinCats - £86,758,000 Zopa - £694,000,000 ………….. Assetz Capital  

Assetz Capital's investors have so far funded £50 million plus (Exact figure not available).

Congratulations to the company as they have recently received two awards – Alternative Finance Provider of the Year at the North West Dealmaker Awards event in Manchester and the Best Financial Start Up at the Innovation Awards ceremony in London.

They have an active loan book with 20 loans to invest in and a further 8 more loans shortly to become available. There is a huge range of businesses seeking finance whether it is for a new wind turbine operation to a retailer of leather goods with some low LTV's and great potential interest rates for investors.

Funding Circle

To date, it has processed loans totalling £464,877,040 – an increase of 5.78% in 3 weeks.

They continue to break records with £35 million lent in November.

Great news for small businesses- they have announced the first investment by a global fixed income manager directly through Funding Circle's marketplace here in the UK. This involves £132 million being invested by a private fund that is managed by KLS Diversified Asset Management for the benefit of the small business sector.


To date, loans totalling £9,083,000 have been processed – an increase of 11.61% in 3 weeks.

Kogan Academy of Dramatic Arts, a drama school that trains directors and actors,

is seeking £60,000 for marketing and to cover the increased costs of QAA accreditation and university validation.

In our last commentary we mentioned that a firm of financial advisers and a firm of accountants were seeking funding. Well, now we have some Manchester solicitors requiring finance to the tune of £150,000. It can only benefit the peer-to-peer lending market to see professional firms using this avenue to raise money.


FundingSecure has administered advances totalling £2,656.828 – an increase of 8.05% in 3 weeks.

The average net interest rate earned by savers has been 12.9% on completed loans and before tax. We are sure that you will agree this is an excellent return with the added benefit of low LTV percentages.

Recent loans posted include one for £850 against a diamond ring valued at £1,200, a loan of £8,400 against an original piece of artwork called "The Dreamer" by Kofi Allen valued at £150,000,a facility loan of £600,000 against a second charge on a library of 15th to 19th century Italian books valued at £3 million and a facility loan of £450,000 against a 42-foot racing power boat valued at £800,000 that is capable of reaching speeds of over 100mph.

Lending Works

Lending Works has arranged loans totalling £4,376,044 – an increase of 15.87% in 3 weeks.

In the last 3 weeks there has been another significant increase in the amount they have lent and, reassuringly, of the loans set up in 2014, none have gone into arrears or have defaulted.

Money & Co

The amount lent so far is £3 million plus.

A credit control company is seeking a loan of £70,000 for expansion purposes. They collect unpaid debts using enforcement agents.


rebuildingsociety's loan book stands at £4,415,830 – an increase of 5.12% in 3 weeks.

Currently, there are 6 loans available to bid on including one for £35,000 for the owners of an Italian restaurant to buy the freehold to the business premises. What is interesting about this proposition is that the restaurant has made losses in each of the last 3 years but, in view of the disclosures provided and the level of security being provided, it has been made available for consideration by the lending community.


The amount lent so far is £86,758,000 – an increase of 3.95% in the last 3 weeks.

There is a loan of £325,000 being sought by a company that sells camping equipment including "Quick Erect" Khyam tents that wish to increase stock levels to service demand that is no doubt being forecast from the spring onwards.


To date, it has been involved in loans totaling £694 million – an increase of 2.36% in 3 weeks.

Interestingly, Zopa has announced an agreement to provide loans to customers purchasing Flow boilers over 5 years with loan repayments being offset by lower home energy bills. So, if your boiler breaks down during the winter season, you know whom to contact!

We trust that you have found the above to be of interest.