Funding Circle’s High-Grade, High Rate Loans

You can lend money to businesses through Funding Circle graded by the peer-to-peer lending company as “A+” – its highest grade.

Although Funding Circle conservatively estimates that 0.6% of these loans will go unpaid each year, not even 20 A+ loans have gone bad in the four years that this P2P company has been operating.

Average annual interest for lending to A+ loans without cashback is currently around 8.5% before fees and 7.5% after Funding Circle deducts its share.

There are a couple of A+ loans that are due to close in a couple of days that currently look like promising candidates for you to bid higher than average and get an even better return.

You get paid cashback straight away, untaxed, and so you can lend the whole lot immediately to earn even more interest. You also can't lose it due to a loan going bad.

A+ loan for larger premises

This lift repair service company needs some extra money to move, since it has outgrown other premises.

The average interest rate successful lenders have bid for this, at the moment, is 8.8.%, which is 7.8% after Funding Circle's fees.

It's a five-year unsecured loan for £217,400.

Bidding is due to end on 30 December 2014 at 2.05pm.

Although this loan is already fully funded by lenders, you could attempt to beat the highest interest rates that other lenders have offered.

A bid for 10.2% by one lender has already been squeezed out by lower rates, but over £70,000 is being offered at 9.9% or more, which means you could currently comfortably slot yourself in between the 8.5% average and 9.9%.

Bear in mind that bidding might intensify in the last few hours of the auction.

This is listed as loan number 9751.

A+, day nursery looking to grow

This day nursery wants to add to its 15 day nurseries through an acquisition.

The average interest rate is currently 9.7%, which is 8.7% after fees.

It's a five-year unsecured loan for £260,420.

Bidding is due to end on 31 December 2014 at 10.52pm.

Although this loan is already fully funded by lenders, well over £100,000 of the current bids are over 9.7%, which gives you lots of room to bid higher than the average rate of 8.5%.

This is listed as loan number 9782.

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