New loan opportunity: Red Advertising Limited

red advertising logoWe’re pleased to announce that a new loan is now live on the FundingKnight crowdlending auction site, offering the chance to lend to Red Advertising Ltd.You’ll find full details of the loans and all the usual financial information available on our website, but to whet your appetite, here’s a quick summary:

Loan opportunity:

Red Advertising Ltd provides cloud based recruitment advertising and candidate management software for recruitment agencies and employers throughout the UK.

It needs the funds to expand its call centre in Cannock.

You can find more details by logging on to www.fundingknight.com and choosing Find a Loan.

Add funds to your account:

You may only place a bid out of available funds in your FundingKnight account. If you need to transfer funds to your account, click here to do this now and go to Add Funds in your My Money account. Remember you can invest as little as £25.

Bid now:

Once funds are added please go to Find a Loan for further details on the business opportunity and to make a bid.

And now you can ask questions:

As part of our continued improvements to the FundingKnight website functionality and user experience we are launching Q&A facility to enable lenders to submit questions to borrowers.  Questions will be sent directly to the borrower.  This facility will help lenders gain the additional information required when making a decision on whether to bid on a loan.

Peer to peer loans trading – How our loan exchange can help investors

loans sign

Recently, our guest blogger, Katie, published her step by step guide to the FundingKnight loan exchange.

She was keen to point out that the loan exchange can be a great way to begin your FundingKnight journey.  After all, buying part of an existing loan (rather than bidding to get involved in a current auction) has several advantages:

You can start earning interest immediately

Since these loans are already live, your money starts working as soon as you “buy it now”.  No need to wait for an auction to end, no need to worry about getting out-bid and not having the chance to re-submit your offer.

It makes spreading your investment easier… and quicker

Most people agree that spreading out your cash (diversifying your portfolio) is a good idea.  It helps minimize risk because you reduce your exposure to any one loan failing.

But waiting for new loans to come on stream can be time consuming, particularly if you’re using a new platform with less loan traffic.

The loan exchange can help.

Instead of bidding on new loans, you can instantly buy parts of existing ones.  That gives you instant access to all the loans that were listed before you started investing and provides the perfect way to quickly spread your investment out thinly.

You can choose shorter investment periods

Existing loans have obviously been running for some time before you buy into them, in fact, some will only have months left to run – meaning that you enter loans knowing exactly what interest rate you’ll earn (assuming no defaults) and exactly when your investment will be repaid.

And of course, if you need to access your cash earlier than planned… you simply head back to the loan exchange.

Selling part of a loan is easy, too…

When it comes to selling part of your investment – perhaps because you want to switch to another loan or simply because you need to access your cash – we’ve tried to make things as simple as possible.

Rather than having to sell your whole loan in an “all or nothing” way, you can choose exactly how much of any investment you want to sell and whether you want to apply a discount or premium to the original price.

This flexibility can be useful if you want to invest a large sum into a loan but know that you’ll soon want to sell part of your investment and buy into newer loans to speed up diversification.

It’s a feature that Steve Lee – who featured in this  investor Q&A about peer to peer lending – singled out for particular praise.

We asked Steve, “are there any FundingKnight features you particularly like?” and this was his reply:

I’m impressed with the way that the loan exchange works, letting you buy and sell loan parts.  Say I have £500 to bid, I often want to do 5 x £100 bids at the same interest rate.  On most sites I have to do it manually five times and keep scrolling to the bid rate that on a tablet or phone is not easy. 

 

FundingKnight allows you to split up an investment and only sell part of it on the loan exchange, giving you the option to state exactly how much you want to sell at any one time.  In my opinion that makes it a superb solution, the best one available on any of the platforms I’ve used.

 

To visit the loan exchange, log on to www.fundingknight.com, choose Find a Loan from the menu on the left hand side and scroll down to see the loan exchange.  If you’ve not already signed up, register for free via the FundingKnight website and enjoy fee free crowdlending for investors.

Photo

FundingKnight review: What makes us different for investors

being different

This week, a potential investor was kind enough to email us and ask what makes FundingKnight different?  She is keen to spread her investments over a wide range of products and wanted to know what unique differences set FundingKnight apart from other crowdlenders she uses.

We’ve sent a personal response with some answers but if one potential investor is asking the question, it obviously means that there are more of you out there who would like to know more about exactly what’s different about investing with FundingKnight.

So, here goes, a quick review of FundingKnight for lenders.  Feel free to check out the points below for yourself and gives us your thoughts – our door is always open to customer suggestions, tips and constructive feedback.

We lend to businesses not individuals

We arrange loans for businesses rather than people.

Why does it matter?  Deciding whether to invest in businesses or individuals is obviously a personal choice, but we think that the public information that’s available about businesses – such as accounts, cashflow analysis etc. – coupled with the internal and external credit checks we run, make it easier to assess whether a loan from a business is likely to be repaid successfully.

We offer fee free lending for investors

Investing through FundingKnight is fee free for investors.  There are no annual fees, account fees or hidden charges or costs, although of course, there might be tax to pay on any returns.  Many P2P lenders charge fees to investors..

Why does it matter?  It’s cheaper. Investors through us pay no fees, so the interest rate you bid is the interest rate you receive (pre tax and defaults).

We make it easy to sell part of your investment on our loan exchange

FundingKnight let you choose exactly how much of your portfolio you want to sell on the loan exchange.

For example,

You place a bid in a live auction, bidding to invest £1,000 in Apple Accounting Ltd. at 10% over 3 year loan period.

Your bid is successful, the auction completes and you now hold a £1,000 investment in Apple Accounting.  Each month you’ll receive a payment including capital and interest at 10% (prior to any tax and defaults).

A year later, you need to access some cash to finance some unexpected repairs.

You need £600 but you don’t want to cash in the whole of your investment, as you’d like to continue to receive 10% interest on the remainder.

With FundingKnight, you simply tell the system how much of your investment you want to sell, what price you want to offer it at and submit to put it live on the loan exchange.

One of existing investors, Steve Lee, recently called this feature “a superb solution, the best one available on any of the platforms I’ve used.”

You can invest everything that’s in your account

You don’t have to lend in ‘multiples’ on FundingKnight.  We do have a minimum investment of £25 but after that, you can add on whatever is left in your account to ensure that all of your cash is working as hard as it can for you.

For e.g. if you have £32.50 left in your account, you can invest it all rather than investing £25 and having to add more funds to release the remainder.

Finding borrowers and designing loans

Although we’re focusing on investors today, there are also several unique points about how we look after the businesses that borrow via FundingKnight.

  • We offer the chance to take upfront payment holidays, which can be very useful for businesses that need time for the loan investment to start flowing through into cashflow and profit.
  • We use forward – looking as well as historical information to assess applications and focus on how the loan will be repaid out of cash flow.
  • Investors will have access to a cash flow forecast for each loan, information that many P2P Lenders don’t provide.

Hopefully, that gives you some more detail about why crowdlending with FundingKnight offers a better way to lend money.

Please feel free to leave a comment with further questions or drop us an email at [email protected]

Customer participation at the heart of P2P Lending

Why suggestions from you are the key to constant improvement.

participation

(This is an excerpt from a full post published on the P2PMoney blog)

Back in November, I wrote a post about how P2P finance fits into the model of collaborative consumption – otherwise known as the sharing economy for the blog over at P2PMoney.

I made the point that collaborative finance didn’t necessarily need to equal ethical finance, social lending or any other type of ‘do-gooding’. Whilst some of the by-products of crowdlending might very well be good for the wider world (local lending for instance), most investors are in it for the returns, for the chance to make their cash work harder than it would do left in a straightforward deposit account. And that’s absolutely fine.

That doesn’t, however, break the link between P2P finance and the sharing economy. One thing that unites most of the new peer industries that have popped up over the last few years is participation. Peer based businesses need people to participate, whether that’s using someone else’s couch as a bed for the night, sharing a car or borrowing a Boris bike or participating in P2P finance.

By participating, I mean more than simply transacting. After all, transactions happen 24/7 in banks around the world. Participation is about contributing something more to the project, connecting with fellow users or participants and actively trying to make the overall experience more efficient and rewarding for everyone involved.

To read the rest of this article, visit the p2pmoney blog and to start crowdlending with FundingKnight, register as an investor or borrower via the FundingKnight website.

FundingKnight review and some more media mentions…

newspapers

As another loan successfully closes, this time giving Secure Archive Solutions the funds it needs to expand, it’s good to see that the word is spreading about how crowdlending can help boost business finance here in the UK.

TheBusinessDesk.com reported our recent P2P business loan to Secure Archive Solutions

We also got a mention on one of the Guardian blogs, courtesy of Modwenna Rees-Mogg who mentioned FundingKnight in her post about why crowdfunding is increasingly popular for SME financing

 

FundingKnight launch reviews:

Via the blog at p2pmoney: Launch of FundingKnight

P2PMoney founder, Ian Gurney, wrote:

“Looking at the website, it is well designed with clear graphics and colour schemes.”

 

On the wiseclerk.com P2P Banking website: FundingKnight launches auctions

 

Thanks to everyone who’s helping to shout about what we’re doing at FundingKnight.

Straight from an investor’s mouth… the crowdlending experiences of one FundingKnight lender

customer satisfaction

Steve Lee is the MD of Jumbocruiser Ltd., the largest British owned luxury sleeper coach operator in Europe.  As he gets closer to retirement, he’s looking for ways to invest his spare cash effectively.

Since summer 2012, Steve has been actively participating in peer to peer lending using a variety of P2P / P2B platforms to invest funds on behalf of himself, his company Jumbocruiser Ltd., the Jumbocruiser Retirement Benefits Scheme (where allowed) and Spenion Unlimited.

Steve has recently become an active FundingKnight lender and has kindly agreed to share, in his own words, some of his thoughts about crowdlending:

FK:  When did you first start experimenting with peer to peer finance?

Steve:  Summer 2012

FK:  Other than FundingKnight, which websites do you use regularly?

Steve:  Funding Circle, Marketinvoice, Thincats.  I also have interests in Zopa and Ratesetter that I am running down.

FK:  You’ve recently started lending through FundingKnight, a relative newcomer in the P2P space.  What do you need to see from a new entrant before you are willing to invest?

Steve:  I always look up the company history and look at the track record of the people behind the company and do a bit of research in the same way I might if investing in shares or loans on other platforms.  When it comes to loans on the platforms, I am slowly learning to use common sense as well.  On one platform I bid £5,000 on a company that was set up just to do a major conference with global speakers (i.e. Bill Clinton) designed for budding entrepreneurs.  This was before I looked at the project carefully.  On reflection I realised I should never have placed the bid as the opportunity was fraught with danger – who was going to cough up £250 to hear people with no entrepreneurial skills like Bill Clinton speak?  I am more careful now and as a minimum I get a credit rating and require a track record of the people involved and even then spread myself out thinner initially.

FK:  Why does P2P finance appeal to you?  Is it solely about the return on investment or does helping small businesses / getting more involved in actively managing your money matter too?

Steve:  I have to apologise but despite being a former hippy activist, I do not do it for the kharma but merely due to the fact that I need to invest my spare cash effectively before I retire.  I believe there is a short term window of opportunity until the government and banks get their acts together where I can overall hit around the 10% return mark before tax and I am taking advantage of it.

FK:  Are there benefits to be had from dealing with smaller companies like P2P lenders rather than big, mainstream banks?

Steve:  It depends on (a) rates and (b) security required when lending to profitable businesses.  For new businesses P2P will probably remain the ONLY way to get capital invested.  There are many lenders out there who will do auto-lending, so those loans will be covered once they get past the platform’s own initial evaluation for loan acceptance. Nearly all my failed loans (on other platforms) were auto-lent so I no longer do that but some people just do not have the time to mess around so I still see a value in auto-bidding for the lenders and the platforms and the borrowers.

FK:  Are there any FundingKnight features you particularly like?

Steve:  I’m impressed with the way that the loan exchange works, letting you buy and sell loan parts.  Say I have £500 to bid, I often want to do 5 x £100 bids at the same interest rate.  On most sites I have to do it manually five times and keep scrolling to the bid rate which on a tablet or phone is not easy.

FundingKnight allows you to split up an investment and only sell part of it on the loan exchange, giving you the option to state exactly how much you want to sell at any one time.  In my opinion that makes it a superb solution, the best one available on any of the platforms I’ve used.

FK:  What would you say to potential investors wondering whether to try P2P Finance?

Steve:  Spread your loans thinly.  Look at who you are lending to.  Feel comfortable about the lending platform that you will initially be sending your money to.  Do not be greedy and bid a lot on loans which have high interest rates but carry a bigger risk.  Subscribe to a database like Company Check and if things look to be going downhill, do not delay selling on a secondary market (loan exchange) even if you are getting a high rate of return.

It is quite difficult to lend out a lot of money quickly so use a site with a secondary market (loan exchange) and accept lower rates for now so you all get all your money lent out and then slowly sell the loan parts when rates are higher elsewhere.  It is a juggling act but it can be done.

FK:  Thank you Steve, we really appreciate you taking the time to share your thoughts with the FundingKnight blog.  Good luck with your crowdlending investments in the future.

Note: The answers above represent Steve’s own personal views and opinion and in no way constitute advice.

More about Steve:

Steve Lee is MD of Jumbocruiser Ltd, one of Europe’s leading sleeper coach companies with coaches from 8 to 16 passengers.  If you are interested in finding out more, please use the online quote form to get in touch.

Can crowdlending regain trust in business finance?

trust

2012 ended with a flurry of news about crowdlending and peer to peer lending and it seems that January has continued the trend with plenty more articles cropping up to discuss how alternative finance can help restore faith in a beleagured financial system and  provide the business funding that our economy needs to grow.

Since the whole concept of peer to peer is about sharing, we thought it would be good to share one of our favourites, a post from David Pitcher published over at SunZu (previously ecademy).  David’s post asks whether peer to peer lending can restore trust in finance for business and has sparked some interesting comments.

Recently I saw a T-shirt on which was printed:

‘Give a man a gun and he can rob a bank.
Give a man a bank and he can rob the world.’

Some businesses are still feeling betrayed by banks because they have not been lent the finance they need to develop or continue trading.
It seems to me that a key issue about banks is about their trustworthiness . After all, a run on a bank is only the loss of trust that the bank can keep our deposits safe even if they are actually safe.

Trust

Trust is the basis of all business and personal dealings. No amount of legislation can actually replace that personal and corporate trustworthiness, established, tested and proved over many years. Sadly and foolishly some unscrupulous businessmen including some bankers have done the unthinkable – for personal gain they have ‘at a stroke’ betrayed and squandered that ancient trust.
The response from a friend who is a retired senior banker was one of anger and disbelief and he simply asks ‘Whatever happened to ‘my word is my bond’?’

To read the rest of David’s article visit the SunZu website

Crowdlending helps North West business grow

scanning machine

Whilst the UK digests the news that Britain may be heading for a triple-dip recession, Secure Archive Solutions are proving that it doesn’t need to be all doom and gloom for the UK’s small businesses. The business is going from strength to strength proving viable businesses throughout the UK need investment for growth.

Mick Collins, Founder of Secure Archive Solutions said,

“It’s great that small businesses like us can find new ways to get the funding we need. We’ve got big plans for the future and know we can grow profitably with the right small business finance in place.  FundingKnight provide a fast, flexible service. Our loan was live on their website within a week and is already nearly 40% funded.”

Secure Archive Solutions credits expansion into new areas such as scanning as being a key source of growth, and are backed by a strategic vision to find innovative ways to help the company grow profitably and sustainably.

Secured Archive Solutions launched a new round of funding on www.fundingknight.com at the end of last week and the loan is already 40% funded, demonstrating a healthy interest from investors.

The loan still has nine days left to run so if you’d like to get involved simply add funds to your FundingKnight account and go to Find a Loan to place a bid.  If you’ve not yet signed up with FundingKnight head over to register as a lender.  It’s entirely free to join, there are no fees for taking part in a loan and you can start lending with an investment of £25 or more.

New crowdlending opportunity: Secure Archive Solutions Ltd.

SAS Ltd logoA new investment opportunity is now live on our website for all registered lenders to bid on.  If you’re already registered with FundingKnight you can log straight into the website to read all about the loan opportunity, review the financial information and, if you wish, place a bid.  If you’re new to crowdlending or not yet signed up with FundingKnight simply go to www.fundingknight.com to sign up as a lender.  You can start investing with £25 and we charge no fees for taking part in a loan.Whilst it’s early for us to predict rate which potential lenders will achieve, our first auction-based loan provided lenders on average with a rate of 9.98% p.a.

New borrower: Secure Archive Solutions Limited

Amount: £50,000

Period: 2 years

Auction duration: 14 days

Based in Altrincham, Cheshire, Secure Archive Systems provides document storage and archive facilities, offering bespoke solutions in the document management service sector, with a turnover of over £400,000 in the last financial year.It needs the funds to extend its storage capability, installing racking in its newly acquired warehouse, building an extension to its vault, and upgrading its IT.

Once registered, you can find more details by logging on to www.fundingknight.com and choosing Find a Loan.

 

Crowdfunding accountants: Invest in abacus Franchising

abacus franchising logo

New loans are now live on the FundingKnight website, offering the chance to start investing in abacus Franchising.

Abacus is a national network of qualified accountants, supporting small businesses in all aspects of accountancy and taxation.

There are two separate auctions providing a chance to invest in British business:

1 – year loan of £20,000

3 – year loan of £30,000

Each loan will be crowdfunded, using the FundingKnight investment community to attract investors.

You can start investing with as little as £25 and peer to peer lending is fee free with FundingKnight.

To lend to British business you need to register as a FundingKnight investor.  Once that’s done, you simply log onto www.fundingknight.com and choose Find a Loan to start investing.

You decide what to invest in, you decide the rate that you want to bid and you have the chance to access your cash whenever you need it by selling or all or part of your investment to a new lender via the FundingKnight loan exchange.

Read about the abacus loans below, or for full financial analysis and information log onto the FundingKnight website.

Business seeking funding: abacus Franchising Company Limited

Loan 1:

Amount: £20,000

Period:  1 year, repayable in 12 installments

Loan 2:

Amount: £30,000

Period:  3 years, with a 3 month repayment holiday

Auction duration:

Fast track auction of up to 14 days, to close when both loans have been filled at the reserve interest rate.

Reason for loan:

Expansion, following new contract awarded by Scania GB.

Business background:

Incorporated in 2004, abacus has developed a national network of qualified accountants who support SME businesses with all aspects of accountancy, taxation and administration functions.  The network has over 3,000 clients. Its collective fee income would make it one of the top 100 accountancy firms in the UK. Abacus is the only national accountancy franchise for qualified accountants approved by the British Franchise Association.

The loan is to provide finance to support the expansion of the business following an award of a new alliance with Scania GB to provide services to its customers.

Find out more, or search for new loan opportunities by registering as an investor with FundingKnight.