Autobid bids any available money in your Funding Circle account on business loan requests and buys parts of existing loans from other investors. It will bid at fixed interest rates for new loan requests.
The actual average gross rate that you receive will depend on the mix of different risk bands you lend to.
You can set your Autobid to lend 0.25%, 0.5% or 1% of your total lending to any one business. Remember that the minimum bid is £20, so where you have a balance of less than £2,000, Autobid will lend at the minimum bid amount in place of the 0.5% / 1% setting. As an example, if you have £1,000 in your account, it will bid at £20 to 50 different businesses.
You can click on advanced settings to make adjustments. Here you can choose which risk bands to lend to, from A+ to E where A+ is lowest risk, and you can set your secondary offer rates by risk band. When setting your secondary market offer rate you should consider your lending speed. If you set your return too high for buying loan parts it may take longer for your money to be lent out and start earning interest.
You can also reduce the maximum percentage of your total lending which can be lent to one business. This will increase the number of businesses your money is spread across to help you diversify but may affect your lending speed.
Autobid will not purchase loan parts from other investors which have a mark-up applied by the selling investor.
For more information on Autobid please see the How to Lend page.