Funding Circle response to “Avoid if you are an investor”

Hi Martyn,

Thank you for posting a review.

appreciate that it is concerning to see losses occur on your account, however, credit defaults are intrinsic to any form of lending, especially when lending to small and medium businesses and just to clarify, as we are a risk based platform we can never guarantee returns, but solely project.

Bad debts will be higher to start with and as recoveries come in, this will reflect the bad debt rates for these specific years.

Recoveries are on a case by case basis and are completely dependent on the circumstance of the individual defaulted loan. The recovery process is often a lengthy process. The forecasted recovery rate from bad debt over a 5 year period is 30p/£. In a lot of the cases it can take months to get payment plans set up or if there are legal on-goings, then this can also increase the time taken to receive recoveries.

It also should be noted that peer-to-peer lending should be viewed as a mid to long term investment with the secondary market being a feature of our platform. However, accessing funds in this way is not guaranteed as it is contingent on there being investors available to buy loan parts from you.

If you would like to discuss any of the points raised, or your account in general, please give us a call on 0800 048 2467 or send an email to contactus@fundingcircle.com.

The Funding Circle team.