Funding Circle has launched it’s peer to company lending service in Britain. As reported by P2P-Banking.com in February the startup received 1.1 million US$. Any UK resident can lend either by individually selecting businesses or by using the autobid feature and spreading the investment over several matching businesses. While loans last for 1 to 3 years FundingCircle – unlike other p2p lending sites – allows lenders to access their money easily: Selling of parts of loans funded to other lenders is possible (secondary market).
In 2010 lenders are not charged any fees to use Funding Circle (in 2011 there will be a 1% annual servicing fee and a 1% sales fee).
All businesses applying for loans are screened by Funding Circle’s underwriters using data supplied by Experian to ensure they are creditworthy. A business may apply for a Funding Circle loan amount between 5,000 and 50,000 GBP.
Currently there are 10 loan auctions running (example).
Funding Circle lenders can form ‘circles’. Circles are a recommendation group system that allow likeminded lenders to work together in selecting businesses with characteristics valued by them.
Asked about the launch, James Meekings, co-funder of Funding Circle told P2P-Banking.com: “We have been delighted with the level of interest and lending offers already placed, which have been helped by our 2% cashback offer.”