What Is Happening In Peer-To-Peer Lending - Market Commentary –27th October 2014

Last post: Oct 27, 2014

The Secret Investor reviews the peer to peer lending market 27th of October 2014

Totals lent to date (27th October 2014) Assetz Capital - £50 million plus Funding Circle - £401,900,080 FundingKnight - £7,983,000 FundingSecure - £2,022,379 Lending Works - £2,766,571 Money & Co –  £2,640,000 Rebuildingsociety - £3,844,100 ThinCats - £80,868,000 Zopa - £653,000,000 …………..

Assetz Capital  

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

Interestingly, of the 19 loans currently available to invest in, 5 of them are for wind turbine developments with 2 of the loans being for over £1 million each. This will no doubt please the Government as the UK has renewable energy and carbon emissions targets to meet by 2020.

Funding Circle

To date, it has processed loans totaling £401,900,080 – an increase of 3.38% in 2 weeks. A Cheshire fertility hospital was seeking a loan of £200,000. They have launched a 4-week national TV advertising campaign.They have entered into an agreement with PwC (PricewaterhouseCoopers) who are the second largest professional services network in the world and one of the top four auditors to support growing businesses in the UK by providing access to finance. PwC will refer small business clients requiring other sources of finance to Funding Circle. In exchange borrowers will be able to use PwC's subscription based accounting service called My Financepartner. This just shows how far peer-to-peer lending has come when a company such as PwC is supporting it.

Not stopping their, Funding Circle and Rushcliffe Borough Council have launched the Local Business Lending Partnership in which the council will use Funding Circle to lend as much as £500,000 to help local businesses grow.


To date, loans totaling £7,983,000 have been processed – an increase of 0.63% in a fortnight.

It seems to have been a quiet couple of weeks with only £50,000 lent and one new loan coming to auction – an Eastbourne hotel and pub wishing to borrow £35,000 to repay a loan from family and friends to create 3 letting rooms.


FundingSecure has administered advances totaling £2,022,379 – an increase of 1.48% in 2 weeks.

On 24th October a loan of £300,000 was auctioned and this was fully funded within 24 hours. The security was 39 mini-sculptures valued at £3 million that sit within the eye of a needle so a microscope is required to admire them. One of these was a sculpture of the painting of The Last Supper by Leonardo da Vinci. The artist is Willard Wigan MBE from Birmingham.

Lending Works

Lending Works has arranged loans totaling £2,766,571 – an increase of 24.12%.Another good couple of weeks with over half a million pounds advanced.

Money & Co The amount lent so far remains at £2,640,000. Nothing new to report. rebuildingsociety

rebuildingsociety's loan book stands at £3,844,100. A loan of £82,000 has been made available to the owner of a 1936 building in Hucknall, Nottingham that houses a bingo hall and cinema with the later having closed back in 2005. The owner is to use the money to carry out some repairs/updating to the property prior to valuation and then sell it to a local community project called The Byron Project who intend to spend a considerable amount of money to restore it to its former 1936's glory.


To date, £80,868,000 has been lent through ThinCats – an increase of 3.44% in the last 2 weeks. We are aware of 3 new auctions in the past couple of weeks with one of those being for £350,000 to fund the building of a 225kw wind turbine with a target interest rate of 9.75% and an LTV of only 50%. This development is expected to produce an indexed linked government backed income of £89,916 per annum over 20 years for the owners.


To date, it has been involved in loans totaling £653 million – an increase of 1.87% in 2 weeks. They have recently produced their Monthly Bad Debt Report showing in the 12 months to September 2014 that 0.23% of loans were in default/arrears (assumes 50% of current arrears are recovered). This is a reduction on the same period last year when it stood at 0.44%.  The figure for the year prior to that was 0.66%. A positive trend.

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