What is happening in peer-to-peer lending - Market Commentary – 29th April 2015

Totals lent to date (29th April 2015) 

Assetz Capital - £71,767,144
Funding Circle - £616,727,520
FundingKnight - £14,831, 000
FundingSecure - £5.127,404
Lending Works - £7,757,857
Money & Co –  £4,625,000
Rebuildingsociety - £5,984,600
ThinCats - £104,784, 000
Zopa - £831,000,000
RateSetter £602,219,699
Invest and Fund - £ not currently available
LendingCrowd - £ not currently available
ArchOver -£3,560,000 
…………..

Assetz Capital  

Assetz Capital's investors have so far funded £71,767,144 of loans (most up to date figure available). 

This month, it celebrates having been operating for two years during which period it has gone through significant expansion. 

A variety of loans continue to be available to invest in for numerous purposes including several for bridging finance. An increasing number of businesses appear to be seeking this later form of funding through peer-to-peer sources rather than the more traditional route of the high street banks. 

Funding Circle 

To date, it has processed loans totalling £616,727,520 – an increase of 2.51% in 2 weeks. 

It has completed on a $150 million equity investment package that will enable increased funds to be made available to borrowers both in the UK and the USA. 

Yet again another great two weeks in terms of money lent. Numerous lending opportunities for investors such as a video game developer seeking £125,000 to assist in the building of an educational game and £55,000 being sought by a will writing company for business expansion. 

FundingKnight 

To date, it has processed loans totaling £14,831,000 – an increase of 1.37% in 2 weeks. 

A quieter couple of weeks when compared with the previous fortnight with £201,000 lent.

Currently, there are three loans available to bid on albeit two of them have already been fully funded with the third almost 90% funded. The interest rates on these loans may well be in the region of 10% to 11% pa so that would appear to be a reasonable potential return for an investor.

Interestingly, one of the borrowers is Just Cash Flow plc that provides working capital for expanding UK businesses. The funds are required to securitise existing borrowing it has made.

FundingSecure

FundingSecure has administered advances totalling £5,127,404 (most up to date figure available).

Presently three loans are available to invest in with the security offered on two of them being things like a ring, watch and a clock. The third loan for £210,000 is secured by a plot of land. Excellent security margins of 63% to 67% and rates of between 12% to 13% pa.  Loans continue to be fully funded rapidly.

Lending Works

Lending Works has arranged loans totalling £7,757,857 – an increase of 7.90% in 2 weeks.

Yet again, a fantastic two weeks with 104 loans being drawn down for in excess of £568,000

Money & Co

The amount lent so far is £4,625,000.

Take up of the Globavista loan of £500,000 referred to previously is still only 32% funded (22% funded two weeks ago). However, the loan of £250,000 being sought by Olsen Doors and Windows that we also mentioned in our last report is already 100% funded. An industrial supplier is seeking £315,000 for the purchase of shares with this being 21% funded with a potential interest rate of around 9.1%.

rebuildingsociety
 
rebuildingsociety's loan book stands at £5,984,600 – an increase of 1.53% in 2 weeks.

It appears to have been a quiet couple of weeks in terms of the amount lent when compared with the previous fortnight as advances only totalled £90,000. However, there is plenty of opportunity at the moment as there are six loans current available with one of those being from Cleeve Hill Healthcare Limited that is seeking £750,000 for working and development capital and to liquidate a loan with ThinCats.

ThinCats

The amount lent so far is £104,784,000 – an increase of 3.49% in the last 2 weeks.

There are five loans available in the auction with one being sought by Business Doctors Franchising Limited for £350,000. Franchisees provide support to entrepreneurs and business owners and are looking to expand into overseas markets. This has a target rate of 13% pa and bids have already amounted to £55,000 in less than two days.

Zopa and RateSetter
 
Zopa

To date, Zopa has been involved in loans totalling £831 million – an increase of 2.47% in 2 weeks.

Once again, a pleasing couple of weeks.

RateSetter

To date, it has been involved in loans totalling £602,219,699 – an increase of 3.19% in 2 weeks.

This is another excellent two weeks performance.

Invest & Fund
 
New loans appear to be fully funded quite quickly. However, there is currently one lending opportunity to bid on with this being for a company seeking £25,000 that specializes in buying, renovating and selling coastal bungalows in Kent for retired people to live in.

LendingCrowd
 
There are currently a couple of loans available to invest in with one of them being for a bridal gowns retailer seeking £60,000 to purchase more stock and improve its website. This is already 30% funded with 24 bidders and a potential average rate of 12.6% pa.

There are a number of existing loans in the Loan Exchange to consider making an investment in.

ArchOver

To date, it has lent £3,560,000 (most up to date figure available).
 
A finance provider is seeking a loan of £200,000 to be used to provide funding to law firms. Apparently, it is processing other loan requests that should be available shortly.

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