Funding Circle response to “INVESTORS TAKE NOTE Please don’t be…….”

Hi Mike,

Thank you for taking the time to post a review.

We are sorry to hear that you have not enjoyed your investment with Funding Circle.

It is important to note that peer-to-peer lending should be viewed as a mid to long term investment with the option to sell loan parts on the secondary market a feature of our platform.

Although the credit environment for small businesses remains strong, the outlook for consumer credit in the UK has worsened in recent years. This has impacted a small population of loans in our higher risk bands who can be more susceptible to shifting trends in the consumer credit environment. These headwinds are reflected in the projected returns for loans taken out since 2016, which are now between 4-7% per year.

The 1.25% transfer payment you are referring to is a fixed amount applied automatically to all loan part sales. It is calculated on the outstanding principal of the loan part at the time of sale. For example, a £20 loan part is sold for £19.75 (and, as with the current tool, the selling investor would also receive any interest owed on that loan part since the last monthly repayment up to the point of sale).

100% of the transfer payment goes to the investor who is buying the loan part. This brings us in line with other lending platforms, although in our case, Funding Circle does not receive any fees from any loan part sale.

If you would like to discuss your personal account in more detail, please get in touch with our investor support team on 0800 048 2467 or send an email to

The Funding Circle team.

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