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.

The Loan Exchange – A Step by Step Guide

stock exchange

So you have chosen to invest your money into FundingKnight’s peer to business lending scheme. Congratulations!

But now what to do with it?

There are a few choices for the uninitiated to make when investing in FundingKnight loans, such as which company you want to get behind and lend to, how much you want to lend and lastly the method in which you lend.

The first two choices of who and how much are fairly self explanatory but the method of how you lend is an interesting one.

Investors have two choices. You can bid on current new loans where you’ll be bidding in a reverse auction against other investors with the lowest bids – in terms of the interest rate you offer to lend at – being accepted to form the final loan.

The alternative lies in The Loan Exchange. This investment is no longer a live auction but rather, if we look at it in terms of those well known online auctioneers, ebay, a “buy it now” option.

And the process is ridiculously simple. Register as a lender on FundingKnight and deposit an amount of cash that suits you and your investment needs. You are now a bona fide lender and head straight to the my money page. You’re getting close…

   My Money

Now it’s time to choose the business and loan you want to invest in. Head to ‘Find a Loan’ and expand The Loan Exchange option.

You’ll find lots of different loan parts available to choose from.  These are investments that existing FundingKnight lenders already hold but are choosing to sell on, perhaps to release their cash, or perhaps just to spread the investment across more loans ad diversify their portfolio.  Some will be small parts, say £25, others will be much larger, say £1,000 or more.

Choose the loan part you would like to buy.

the loan exchange

Click on ‘Tell Me More’ and everything you need to know about your prospective loan terms, returns, business information, turnovers, financial history and more is there to read in clear, jargon free plain English.

Loan details

And this is where FundingKnight comes into its own: it’s a simple and clear process, user-friendly and quick. Any questions you might have will be answered here but if you need to know more then FK are more than happy to get back to you with further information.

Then one you’ve chosen and done your research (and providing you have enough funds in your account!) it’s a one-click process, just “buy now” and submit. Success! You are now a peer to peer lender!

So why would you want to “buy it now” rather than bid on a loan?

Even to a newbie like me, there are some clear advantages that might make you opt to “buy it now” rather than bidding. Clearly the danger of being outbid is removed and the process is quicker – and we like quick. Also, even if there are aren’t live loans online available to bid on, there will always be loan parts available to purchase on the loan exchange. Sometimes time is of the essence and a one click process is all you have time for.

Another plus point is that it helps you spread your investment and diversify your loans and that keeps it interesting – as well as spreading out your investment to reduce the risk that one bad loan will wipe out the returns on your whole portfolio. It also allows you more flexibility as you are able to invest in past loans that have already come and gone, no matter when you registered as a lender.

The loan exchange also lets you choose shorter term lending periods as some of the loan has already been paid off, leaving less time for the rest of the loan to run. This allows your money to go in and out faster than it might if you bid on a current loan.

Sometimes, it might even be cheaper. Because the investor selling may want quick access to their cash, they might offer it at a discount and everyone loves a bargain right?

And for those who may be slightly impatient (and I count myself in this!) you won’t have to wait around for your cash to start earning interest. No need to wait, get involved straightaway and start to see some returns as soon as possible.

You can find out more about becoming a FundingKnight lender here or click on the Katie’s crowdlending journey to find out more about my adventures in peer to peer finance.

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Our next online peer to business lending auction: LeisureBench Ltd.

online auction

We are pleased to announce that the next online auction has just gone live on the FundingKnight peer to peer lending website

This time we’re offering our registered lenders the chance to invest in LeisureBench Ltd.  LeisureBench were our first loan customers and have already successfully paid off their first loan.  We are delighted that we can now offer them the benefit of a full live auction process.

You can read more about the investment opportunity below and, if you haven’t already registered as a lender, please do take the time to sign up as a peer to business lender with FundingKnight.  You never know when an opportunity might pop up that’s just too hard to resist…

Business looking for funding: LeisureBench Ltd.

Amount: £50,000

Period: 9 months, with 4 month repayment holiday

Auction duration: 13 days

Reason for loan: Stock purchase – Garden Furniture

Business background:

Established in 2004 as a specialist furniture supplier and garden furniture retailer, LeisureBench has built a niche in importing outdoor furniture and buildings for the commercial sector, particularly the pub and public sectors.

LeisureBench is a fast growing dynamic company able to adapt quickly and efficiently to new trends and markets.  As direct importers with partners in China, Indonesia, Vietnam and Bulgaria, LeisureBench develops its own unique product ranges at very low cost price enabling them to compete at every level.

We lent £110,000 to LeisureBench in January this year, which has been fully repaid. This is the second of three loans we are arranging for LeisureBench to fund stock purchases for the 2013 season.

Add funds to your account:

You will need to allocate the appropriate funds to your account to complete your investment. Log on to FundingKnight and go to Add Funds in your My Money account. Remember you can invest as little as £25.

Bid now

Once funds have been applied to your account (It typically takes 24 hours for the bank to transfer the money) simply go to Find a Loan to find further information on the business and the loan opportunity and to make a bid.