Funding Circle Corporate Elearning
Description
Vocal Characteristics
Language
EnglishVoice Age
Young Adult (18-35)Accents
British (General)Transcript
Note: Transcripts are generated using speech recognition software and may contain errors.
Funding Circle is an online marketplace that enables investors to offer money direct to small companies. Businesses can borrow up to £1 million in the UK, up to $500,000 in the US and up to €250,000 in Germany, Spain and the Netherlands for up to 60 months. Initially, the loan rate was set through an auction process. But since September 2015, funding circle determines the loan rate offered based on risk category and loan term whole or fractional loans are purchased by individual and institutional investors from their respective countries. However, only accredited individuals and institutional investors are allowed to participate on the US marketplace. In addition, loans are purchased by the Funding Circle sme Fund, an investment trust created in November 2015 that trades on the London Stock Exchange. Funding Circle allows accredited investors in the US to invest using a tax advantaged individual retirement account. And they are planning to allow UK investors to use an innovative finance individual savings account. Investors make money from the interest charged on purchase loans while Funding Circle makes money by charging borrowers an origination fee on each funded loan and by charging investors an annual servicing fee on the unpaid principal balance of outstanding loans.