Funding Circle response to “Painful lesson learnt – if it sounds too good…..”

Hi there

We are sorry to hear about your experience as an investor at Funding Circle.

Predominately the loan cycle is around 5 years, so loans which have defaulted recently i.e. 2018/19 are still in the early stages of default.I 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. For your convenience, I have attached the link to an update from our Chief Risk Officer should you wish further details. We think it would be beneficial if you get in touch with our investor team who will be able to look into your account in more depth and provide clarification on the position of your accounts.https://www.fundingcircle.com/blog/2019/08/chief-risk-officers-update-august-2019/ We think it would be beneficial if you get in touch with our investor team who will be able to look into your account in more depth and provide clarification on the position of your accounts.

If you would like to talk to our investor support team about any of the points you have raised please give us a call on 0800 048 2467 or send an email to contactus@fundingcircle.com.

The Funding Circle team.