SME Growth Hack - Funding Circle '21st Century Loans Marketplace'
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Funding Circle 1
description
Funding Circle - 21st Century Loans Marketplace (Sophie Chappelow - Senior Marketing and Partnerships Manager)
Transcript of SME Growth Hack - Funding Circle '21st Century Loans Marketplace'
Funding Circle
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People and organisations looking for better returns on savings
For Businesses
• Loans of £5k to
£1 million
• Periods of 6
months to 5 years
For Investors
• Credit assessment
• Online investor
experience
Funding Circle is an online marketplace where
people lend directly to small businesses
Businesses looking for speed, efficiency and transparency
Facilitated lending to over 3,000 businesses
Over 20,000 active investors on the platform
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A simple model where investors can lend from as
little as £20 on any loan
Investor funds
Repayments & interest
Investors A business
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20
40
60
80
100
120
140
160
• Co-founded by Samir Desai,
James Meekings and Andrew
Mullinger
• Launched in August 2010
• Start-up capital from a number
of leading venture capital firms
(VCs) and angel investors
• Just secured our third capital
raise of £23m - totalling £36m
raised
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£175m lent to date through Funding Circle by our
community of engaged investors
History £175m lent since August 2010
Cu
mu
lati
ve
le
nd
ing
, £
mil
lio
n
Sep ’10:
£0.5M
lent
Sep ’11:
£11.4M
lent
Sept’13:
£155.6M
lent
Sep ’12:
£51.2M lent
Borrowing through Funding Circle
10th September 2013
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Funding Circle loans can be used for almost any
purpose
Working capital
Buying equipment or assets
Deposits for property purchase
Taking on new staff
General cash-flow
Buying stock
General expansion
Replacing an overdraft
Paying down debt
Refurbishment
Growth – buying a new retail
unit
Research and development
Marketing
IT upgrade
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Rates from 6% and no early repayment penalties
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Our products are highly flexible and at
competitive interest rates
Unsecured loans
£5k - £150k
Suitable for a wide
range of purposes
PG required
Secured loans
£150k - £1m
2nd charge ok
All asset security
agreement
Charge on specific
properties
Asset finance
£20k - £1m
Suitable for a wide
range of hard
assets
Hire purchase
100% LTV + VAT if
required
Application process
and criteria
10th September 2013
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Application Process
Simple 4 step online application
Get a decision from the credit team in 2 working days
Listed on auction for 7 – 14 days (typically 7)
Funds transferred as soon as contract signed
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Our loans are available to strong, creditworthy
businesses that pass our assessment
Minimum criteria includes
Limited companies , limited liability partnerships & non limited
Established: trading for 2+ years
Good credit history
Minimum turnover: £100k
Beneficial director UK residents
Beneficial ownership in UK
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Businesses are reviewed using our risk model and
credit scorecard metrics
YES / NO DECISION WITHIN 2 DAYS
Affordability of loan
Good history of repaying debts
Business is healthy and likely to remain so
Cash flow management
Directors have a good credit history
Validation around security
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On passing the credit
assessment, the business is
listed on our marketplace where
investors place bids
Successful applicants list on the marketplace
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Information about each loan is
posted on the marketplace for
investors to view
Once the loan is fully funded or after
the 7 days the business can access
the funds
An arrangement fee of between 2-
5% is applicable only where the
business accepts the loan
Funding Circle marketplace
Meet some of our businesses
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Media business
Profile – A television/video production business specialising in disability related services (British Sign
Language (BSL) interpreting, training, translations)
Loan Purpose – to take on new staff to develop and oversee marketing to drive business growth
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Investment in marketing and staff
£100,000 borrowed
973 lenders
8.93% rate
Years trading: 3 Turnover: £1.8m Net Profit: £185K
Manufacturing and distribution business
Profile – Manufacturer and distributor of Indian food products
Loan Purpose – Moved into larger premises and purchase of new equipment that enabled them to
double production to increase sales.
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Expansion into a new premises and new equipment
£50,000 borrowed
559 lenders
8.08% rate
Years trading: 12 Turnover: £296k Net Profit: £14K
IT business
• Profile – Specialist in the holistic implementation of Oracle E-Business Suite and Business Intelligence systems
• Loan Purpose – Purchase of IT systems to facilitate growth and employment of key personnel with the
appropriate specialised skills
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Expansion and growth capital
£50,000 borrowed
640 lenders
8.27% rate
Years trading: 4 Turnover: £400k Net Profit: £90K
Manufacture and Retail Business
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https://www.youtube.com/watch?v=lTbPVAVlN44
