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Funding CircleUNVERIFIED PLATFORM
UNVERIFIED PLATFORM
Funding Circle
Invest in American businesses on the Funding Circle marketplace. Find out how secured commercial term loans fit into your investment portfolio
UNVERIFIED PLATFORM
Highlights
4.5% - 12%
Asset Class Return•1Y
#17 Rank
In Lending•30d
Invest from
$25K
Overview
Invest in American businesses on the Funding Circle marketplace. Add secured commercial term loans into your investment portfolio. By investing in successful and growing businesses through Funding Circle, investors can diversify their fixed-income portfolios and access attractive returns. Businesses get fast, easy access to financing to grow, create jobs, support local communities and drive the economy forward. It’s a better solution for everyone.
Things to Know
You make money on
Interest
Fees
1%
Min Investment
$25,000
Payout frequency
Monthly
Term of investment
12-36 months
Target Return
5% - 7%
Liquidity
Moderate
Open to
Accredited Only
Mobile Application
iOS, Android
Top Perks
Small business financing made easy
Access to a growing asset class
Historical annual returns of 5 - 7%
Other ways to invest in Lending
How you make money
You are lending money to borrowers and therefore earn monthly interest on your invested (or loaned) principal.
How Funding Circle makes money
By charging investors 1% servicing fee annually. On loans, a single one-time fee to cover our costs of evaluating and originating your loan. The fee is based on the strength of your credit profile and is deducted from your total loan proceeds, which means you do not pay this fee if you do not receive a loan. Rates for borrowers are 3.49% to 6.99%
Is it safe?
"Default Risk — Investments are neither FDIC insured nor equivalent to bank CDs or Treasury notes. Inflation Risk — Similar to bonds (since there’s a fixed rate), you have the risk of inflation eating at your returns. However, with the high rate of return, this risk is reduced. Liquidity Risk — Loans can be sold on the secondary market, but it can take some time to unwind every single note. Lending Club is a long-term investment. Economy Risk — Another recession will more than likely increase overall defaults of individuals within Lending Club. This would cause your return to decrease."
Established
2010
Country Available
Worldwide
Assets Managed
$2.8B
How You're Taxed
Income Tax
Profits earned from P2P Lending are taxed at ordinary income tax rates. This means that profits are added to your total income for the year.
You can receive income from P2P lending tax free if you invest using certain accounts.
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