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

1. Funding Circle
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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
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3. A simple model where investors can lend from as
little as £20 on any loan
Investors
A business
Investor funds
Repayments & interest
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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
-
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5. Borrowing through Funding Circle
10th September 2013
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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
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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
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8. Application process
and criteria
10th September 2013
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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
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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
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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
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12. Successful applicants list on the marketplace
On passing the credit
assessment, the business is
listed on our marketplace where
investors place bids
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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
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14. Meet some of our businesses
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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
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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
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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
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18. Thank you
10th September 2013
Sophie Chappelow
Senior Manager
sophie.chappelow@fundingcircle.com
0207 4011125
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19. Manufacture and Retail Business
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https://www.youtube.com/watch?v=lTbPVAVlN44