Please note: We are not currently accepting new sign-ups and have paused new lending for existing retail investors, as we will only be offering loans through the Government’s Coronavirus Business Interruption Loan Scheme (CBILS), and retail investors are not able to participate in these loans. This is a temporary measure and we expect resume lending in future.
When you first start lending with Funding Circle you will be asked to select an investor profile. Those who classify themselves as an Everyday Investor will be required to limit their lending to 10% of their investable assets in their first year of using the platform. Following that there is no limit. Those investors who classify themselves as Sophisticated or High Net Worth or who lend through a limited company, will not need to agree to any maximum investment.
To give you the best chance of earning a stable return your lending will be spread across many businesses. No more than 0.5% of your portfolio (subject to a minimum of £10) will be lent to a single business.
The most you will lend to any single business is £2,000, although if you have a larger account your lending to each business will be split into smaller parts no larger than £100 each.
For example, an investor with an account size of £100,000 will lend £500 (0.5%) to each business. That £500 will be split into five loan parts of £100 each. This makes them easier to sell to other investors if you want to access your money early.
Some loan parts made before 18th September 2017 were larger than £100. Therefore there may be instances where you buy loan parts larger than £100 from other investors, providing that loan part is no larger than 0.5% of your portfolio.