Funding Circle add a new lower risk band of C-

Funding Circle have today announced that they are adding an extra risk band to their current list allowing them support even more british businesses and giving their investors the opportunity to lend to higher risk (and ergo higher yielding) businesses. The new band is being called C- and comes after the existing A+, A, B and C categories. A year ago if you wanted to get a Funding Circle loan you had to score at least 50 on the Experian Delphi credit scale. Since then a new category of C was launched which opened the funding up to companies with scores as low as 30. This new category of C- opens up more options but Funding Circle aren't disclosing what rating is required other than saying that their usual stringent credit criteria will be applied (No defaults of CCJs over £250 in the last two years) and, of course, the company will have to meet the affordability and cash flow criteria as well. There is no doubt that there is demand for this loan - both from Borrowers and Investors -  but with an estimated lifetime bad debt percentage of 10.8%, investing here is not for the fainthearted so, as with all peer to peer lending, caveat emptor. If you have a business looking for finance either peer to peer with Funding Circle or one of the other providers, Choice Loans can help. We do not charge any up front fees and you can benefit from our advice and experience in this sector. Please either call on 0845 1260350 or complete our Commercial Loan Enquiry form and we'll call you.