So in a previous blog post, I wrote about the fact that I need to see a better return on investment on my money that I have saved – rather than just leaving it in a shitty current account or whatever. Funding Circle came up as a good return on investment, so I looked into it.
If you’re not clued up on what Funding Circle is – it’s a system of peer to peer lending for small businesses that actually gives a really good return on investment – apparently.
So I decided to try it out and let you know how I got on. 😊
Like I said in my money saving options blog post, I was put onto this by my parents (because who do we always go to for financial advice right?) and it turned out to be a much higher rate of interest than I could find anywhere else.
So because it’s small business loans, your capital is actually technically at risk if you choose to use Funding Circle, but I guess that’s the risk you take to get an interest rate that’s like 4x higher than anything else on the market.
However, I did some researching on various forums because I’m a huge nerd, and I couldn’t find anyone that had said they’d lost a lot of money using Funding Circle – so that’s good enough for me!
So the first thing I did was sign up to use Funding Circle. I had to go through all the basic checks like anti-fraud and shit like that. It wasn’t too bad, no more so than applying for a new bank account.
My application needed further verifications in order to prove I wasn’t laundering money – which was fun. This actually was a really great prompt for me personally though, as I needed to change all my banking details over to my new address, after only living there for like 6 months…
So once I’d got my address changed over and sent a copy of my statements to Funding Circle, they were able to confirm that I actually was a real person and not a fake name used to launder money which was nice. My account got activated within 24 hours of sending my statements and I was able to transfer money.
So this is the final step that I’m up to at the minute. I’ve transferred £1,000 of my savings into my Funding Circle account to get started.
So what makes Funding Circle different – I think?? – is they have a feature called AutoBid. So if you were manually running Funding Circle I think it would get quite tiresome, as you need to manually bid to give your money away. However, with AutoBid, it does exactly what it says on the tin and automatically bids on these loans instead.
So I’ve put in £1000 and hit that magic AutoBid button and I’ll keep you updated on how it goes.