FUNDING CIRCLE is a peer-to-peer lending marketplace that allows investors to lend money directly to small and medium-sized businesses. Funding Circle was the first website to use the process of peer-to-peer lending for business funding in the UK.
When opening a Funding Circle account, you have two options: 1. Balanced lending approach – Lend to the full range of businesses borrowing on the platform. 2. Conservative lending approach – Lend to only those businesses deemed lower risk by the platform.
Funding Circle is one of the most established P2P players and is listed on the LSE. All investments made on the Funding Circle platform are in unsecured loans to UK businesses. The platform features no provision fund and instead seeks to mitigate risk via diversification.
Funding Circle has today (Monday) introduced two key changes to its secondary market, including a measure designed to reduce the average resale time of loans.