What Is Happening In Peer-to-Peer Lending - Market Commentary –25th November 2014

Assetz Capital - £50 million plus

Funding Circle - £439,464,800

FundingKnight - £8,138,000

FundingSecure - £2,042,929

Lending Works - £3,776,595

Money & Co –  £3 million plus

Rebuildingsociety - £4,200,830

ThinCats - £83,458,000

Zopa - £678,000,000

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Assetz Capital  

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

Interestingly, they have just launched the Green Energy Income Account providing green-based investment opportunities i.e. wind farms with a capped rate of 7% gross pa and a maximum LTV of 71% plus protection from the Provision Fund

Funding Circle

To date, it has processed loans totalling £439,464,800 – an increase of 5.34% in 2 weeks.

They announced that they have broken their record for the monetary value of loans placed on the marketplace in one week with 179 loans listed totalling £11, 086,300. There is a wide range in the amounts of these loans with the largest being for £450,000 and the smallest for £5,000.

FundingKnight

To date, loans totalling £8,138,000 have been processed – an increase of 1.18% in a fortnight.

We see that one of the businesses seeking a loan of £60,000 is actually a firm of financial advisers by the name of Morgan De Vere & Partners LLP who require the funds for working capital purposes to fund the training and salaries of new staff.

Furthermore, there is also a firm of accountants by the name of Brookwood Accountancy Ltd seeking a loan of £40,000 to help in the development of their brand, buy new computer equipment and refurbish their business premises.

It is certainly an endorsement of peer-to-peer lending when a firm of financial advisers and an accountancy practice use the sector to meet their funding requirements.

FundingSecure

FundingSecure has administered advances totalling £2,458,880 – an increase of 20.36% in 2 weeks.

One of the facility loans mentioned in our previous Market Commentary has been partially drawn down with £100,000 of the £150,000 released. The other is still being processed.

They have recently completed on a loan of £10,000 with the security being a 1934 Ford Model B Hotrod with a trade value of £25,000 and retail value of £50,000.

They have recently completed on a loan of £1,250 on a limited edition Swarovski Crystal Peacock valued at £2,500.

Loans appearing on their website are quickly taken up by investors. Perhaps this is due to a combination of the low LTV and the type of interesting assets used as security.

Lending Works

Lending Works has arranged loans totalling £3,776,595 – an increase of 20.55%.

What a great couple of weeks Lending Works has had with a huge increase in the monetary volume of loans drawn down.

Money & Co

The amount lent so far is £3 million plus.

A loan request from a publishing company for £333,730 has been fully funded and there is another for a construction firm for £90,000 that is partly funded.

rebuildingsociety

rebuildingsociety's loan book stands at £4,200,830 – an increase of 7.88%.

It has been announced that the technology sister company of rebuilding society, White Label Crowdfunding, has entered into a contract to build the latest version of ThinCats peer-to-peer lending platform here in the UK as well as that competitor's joint ventures in Poland and Australia. Apparently, it is felt that the industry will benefit by such collaboration. There will be no sharing of data between rebuildingsociety and ThinCats.

ThinCats

The amount lent so far is £83,458,000 – an increase of 2.78% in the last 2 weeks.

There is a loan being sought in the auction for £600,000 by a firm of solicitors with a large proportion of this loan being to meet the personal tax liability of the senior partner.

Zopa

To date, it has been involved in loans totalling £678 million – an increase of 3.83% in 2 weeks.

Zopa, the world's first peer-to-peer lender, has announced that it has made its full loan book available to public scrutiny to generate greater transparency within the peer-to-peer industry. The sort of information that is available includes things like amounts of loans, interest rates, postcode details, default rates, present size of loan book, credit markets and Safeguard Fund details. They encourage their competitors to follow suit. Well done to them.

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