SME Growth Hack - Funding Circle '21st Century Loans Marketplace'

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Funding Circle - 21st Century Loans Marketplace (Sophie Chappelow - Senior Marketing and Partnerships Manager)

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SME Growth Hack - Funding Circle '21st Century Loans Marketplace'

  1. 1. Funding Circle 1
  2. 2. Funding Circle is an online marketplace where people lend directly to small businesses People and organisations looking for better returns on savings Over 20,000 active investors on the platform Businesses looking for speed, efficiency and transparency For Businesses • Loans of £5k to £1 million Facilitated lending to over 3,000 businesses • Periods of 6 months to 5 years For Investors • Credit assessment • Online investor experience 2
  3. 3. A simple model where investors can lend from as little as £20 on any loan Investors A business Investor funds Repayments & interest 3
  4. 4. £175m lent to date through Funding Circle by our community of engaged investors £175m lent since August 2010 Sept’13: £155.6M lent 160 Cumulative lending, £ million 140 Sep ’12: £51.2M lent 120 100 80 60 40 20 History Sep ’10: £0.5M lent Sep ’11: £11.4M lent • • • • 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 - 4
  5. 5. Borrowing through Funding Circle 10th September 2013 5
  6. 6. 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 6
  7. 7. Our products are highly flexible and at competitive interest rates Rates from 6% and no early repayment penalties Unsecured loans Secured loans Asset finance £5k - £150k £150k - £1m £20k - £1m  Suitable for a wide range of purposes  2nd charge ok  Suitable for a wide range of hard assets  PG required  All asset security agreement  Charge on specific properties  Hire purchase  100% LTV + VAT if required 7
  8. 8. Application process and criteria 10th September 2013 8
  9. 9. 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 9
  10. 10. 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 10
  11. 11. Businesses are reviewed using our risk model and credit scorecard metrics  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 YES / NO DECISION WITHIN 2 DAYS 11
  12. 12. Successful applicants list on the marketplace On passing the credit assessment, the business is listed on our marketplace where investors place bids 12
  13. 13. Funding Circle marketplace 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 25% is applicable only where the business accepts the loan 13
  14. 14. Meet some of our businesses 14
  15. 15. Media business Investment in marketing and staff £100,000 973 8.93% borrowed rate lenders 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 Years trading: 3 Turnover: £1.8m Net Profit: £185K 15
  16. 16. Manufacturing and distribution business Expansion into a new premises and new equipment £50,000 559 8.08% borrowed lenders rate 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. Years trading: 12 Turnover: £296k Net Profit: £14K 16
  17. 17. IT business Expansion and growth capital £50,000 640 8.27% borrowed rate • • lenders 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 Years trading: 4 Turnover: £400k Net Profit: £90K 17
  18. 18. Thank you 10th September 2013 Sophie Chappelow Senior Manager sophie.chappelow@fundingcircle.com 0207 4011125 18
  19. 19. Manufacture and Retail Business 19 https://www.youtube.com/watch?v=lTbPVAVlN44

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