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Funding Circle grinding to a halt?

Like many on here no doubt, I decided to reverse out of Funding Circle about eighteen months ago with returns falling and unchallenged bad debt rising. Left now with a very small amount of dregs, just a few are available to sell but notice the projected period to sell is now over 45 days! I have decided to leave the very small amount invested with reinvestment switched on, thereby producing at least something, waiting for the inevitable slow death! Such a shame for FC to end up like this, they were the shining light some years ago. Thankfully there are other great platforms out there... Lendingworks, Zopa, Ratesetter et al...

Comments

  • I'm in the same position - the final straw for me was when my financial adviser, who was acquiring a new business, advised that FC had been practically throwing money at him having done little or no "due diligence". My overall interest on investments made with them over 3 years is 1.7% after fees and substantial bad debt. I get more than that in my current account so definitely not worth the risk.

  • Hello - is the consensus that they are one to avoid then?

  • @blahblah said:
    Hello - is the consensus that they are one to avoid then?

    FC are probably safe enough [for now] but I personally could not recommend them, especially when there are other great platforms out there like Lendingworks and Ratesetter. The most annoying thing is FC's persistence with their overly optimistic summary page which simply totals up the lifetime money earnt rather than the current situation which can be dire.

  • Thanks.

  • I'm currently trying to sell a few thousand pounds worth, and the projected time FC are advising is 101 days! This compares with less than a day when I last sold about a year ago. To me, this seems like a company who are struggling, with obviously many more current investors wanting to sell than new investors coming in. Absolutely agree with the previous comments that there are now much better platforms to use (Lending Works and Ratesetter have both been very goods steady performers to me).

  • Yes GSB, things certainly seem to be getting worse at FC with projected sale times now well over 100 Days! Yet FC are still advertising loans on Sky TV so I am guessing they are still getting lots of institutional investors or maybe some private investors who don't know what's going on! All we can do is sit it out. My remaining few thousand with FC has now reduced to just a few hundred, and I am slowly managing to reverse out without huge losses. In the meantime, Ratesetter and Lendingworks are performing well with Zopa now recovering.... these three are my only recommendations now.

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