Funding Circle Securities facilitates investments in small business loans
Investment Profile 2Q 2015
Funding Circle Securities facilitates investments in small business loans Many small businesses lack access to capital
Secured lending to quality borrowers
Small business loans on banks’ balance sheets have declined by about 20 percentage points since the financial crisis, while loans to larger businesses have risen by about 4 points over the same period.1
Funding Circle USA’s marketplace provides access to secured small business credit investment opportunities. All loans are prescreened and assigned a risk rating (“FC Rating”) and coupon rate by Funding Circle USA’s underwriting team.
Commercial and industrial loans by size (% GDP) 2 < $1m
> $1m
2.5%
8.0%
7.0%
2.0%
6.5%
%> $1m
%< $1m
7.5%
6.0% 1.5%
5.5% 08
09
10
11
12
13
Term (months)
Gross Annual Coupon Rate
12
5.99% - 14.74%
24
8.99% - 17.49%
36
9.99% - 18.49%
48
10.99% - 19.49%
60
12.99% - 20.99%
14
Year
Portfolio composition3
Key business metrics
Ranges listed below represent the 80th-20th percentile values of each loan metric across the entire marketplace portfolio:
Ranges listed below represent the 80th-20th percentile values of each business metric per corresponding FC rating:
Size of loan : $175,000 - $50,000 Age of business : 14 - 4 years | Geographic location : 47 states Term (months)
Risk Rating
A+
A
B
C
2013 Gross Revenue
$3.85-0.87m
$2.91-0.43m
$2.47-0.42m
$2.16-0.35m
$0.70-0.11m
$0.31-0.05m
$0.22-0.04m
$0.18-0.04m
12 (0.3%)
A+ (1.3%)
2013 EBITDA
24 (12.2%)
A (20.3%)
36 (48.6%)
B (45.6%)
Debt Coverage Ratio
6.5x-1.9x
3.3x-1.5x
2.2x-1.2x
1.8x-1.1x
48 (21.4%)
C (32.9%)
FICO score4
791-707
760-691
736-666
712-643
60 (17.4%)
1) Mills, Karen G., and Brayden McCarthy. “The State of Small Business Lending: Credit Access During the Recovery and How Technology May Change the Game.” Harvard Business School Working Paper, No. 15-004, July 2014. 2) [Lending data source]FDIC: Loans to Small Businesses and Farms, FDIC-Insured Institutions, 1995 - 2014. https://www2.fdic.gov/qbp/timeseries/SmallBusiness&FarmLoans.xls; [GDP data source] Department of Commerce. Bureau of Economic Analysis. GDP Press Release. Table 3. 3) Marketplace portfolio includes all loans originated by Funding Circle USA, Inc. and/or its U.S. based affiliates (individually and collectively, “Funding Circle USA”) from 3/11/2014 to 3/9/2015 except for loans made to new franchise borrowers (those borrowers with less than 2 years of operational history) unless such borrower has provided a corporate franchisor guarantee. Funding Circle USA no longer offers loans to a business with less than two years of operational history unless the business is a franchisee and provides a corporate franchisor guarantee. 4) FICO score represents the FICO score of one guarantor per each loan originated by Funding Circle USA as of the date the guarantor applied for a Funding Circle USA loan on behalf of the business; loans may have more than one guarantor.
W : fundingcircle.com/us/invest
E : [email protected]
T : (855) 849-1940
Investment Profile 2Q 2015
Ways to invest The Funding Circle Marketplace
1) Browse & select investments Investors who wish to actively select individual portfolio investments can participate via Funding Circle USA’s online marketplace. Here, investors browse and purchase Notes.1
Recommended minimum investment
$50,000
Available assets
Notes1 of all FC ratings and maturities
Minimum Note size
$1,000
Servicing fee charged to investor on loans
2) Enroll in automated investing
0.083% per month2
Supported account types
Institutional, individual accounts and IRAs
Investors on Funding Circle USA’s marketplace can set their desired investment criteria and automatically build their portfolios. To learn more, contact the Funding Circle Securities team.
Investments via traditional or Roth IRAs are welcome Funding Circle USA welcomes investments via traditional or Roth IRAs. To learn more about how to invest with a tax-advantaged account, please contact the Funding Circle Securities team.
Contact us to get started Please call us between 8:00am and 6:00pm PT at (855) 849-1940 or email [email protected] to get started.
“
Funding Circle gave me the spark I needed to hire top-notch staff and more than double our revenue last year. Dorika Beckett, Harvard MBA Founder/CEO, LiveWell Home Care Funding Circle USA 2014 borrower3
”
Sign up online To begin our onboarding and accreditation process, visit Funding Circle Securities’ website today: www.fundingcircle.com/us/invest
1) “Notes,” issued by Funding Circle Notes Program, LLC (“Funding Circle Notes Program”), are promissory notes that represent a pro rata interest in corresponding business loans and are dependent for payment on payments that Funding Circle Notes Program receives on the corresponding business loans originated by an affiliate of Funding Circle Notes Program. 2) The servicing fee is calculated as a percentage of the outstanding principal amount of the loan prior to applying the current payment. For additional information, please refer to the confidential offering materials of Funding Circle Notes Program. 3) Testimonials contained herein may not be representative of the experience of other borrowers. Funding Circle Securities, LLC (“Funding Circle Securities”), member FINRA/SIPC, is owned and operated by Funding Circle USA, Inc. All securities related activities are conducted through Funding Circle Securities. Funding Circle Securities only offers investment products and securities of its affiliates, and such products and securities are not publicly traded and may be subject to holding period requirements. Securities offered through Funding Circle Securities are only suitable for Accredited Investors, as defined by Rule 501 of the Securities Act of 1933, who are familiar with and willing to accept the high risk associated with private investments. Investing in private placements requires high-risk tolerance, low liquidity concerns and long-term commitments. Investors must be able to afford to lose their entire investment. Carefully consider the investment objectives, risk, charges and expenses of any investment product prior to investing. No communication contained herein should be construed as a recommendation for any security offering. This website provides general and preliminary information about securities offered through Funding Circle Securities and is intended for initial reference purposes only. It is not a summary or compilation of all applicable information and is not complete. This website does not constitute an offer to sell or buy any securities by Funding Circle Securities. There shall be no offer or sale of any securities without the delivery of confidential offering materials and related documents (the “Offering Materials”). This information contained herein is qualified by and subject to more detailed information in the Offering Materials.
W : fundingcircle.com/us/invest
E : [email protected]
T : (855) 849-1940
Funding Circle Securities facilitates investments in small business loans Many small businesses lack access to capital
Secured lending to quality borrowers
Small business loans on banks’ balance sheets have declined by about 20 percentage points since the financial crisis, while loans to larger businesses have risen by about 4 points over the same period.1
Funding Circle USA’s marketplace provides access to secured small business credit investment opportunities. All loans are prescreened and assigned a risk rating (“FC Rating”) and coupon rate by Funding Circle USA’s underwriting team.
Commercial and industrial loans by size (% GDP) 2 < $1m
> $1m
2.5%
8.0%
7.0%
2.0%
6.5%
%> $1m
%< $1m
7.5%
6.0% 1.5%
5.5% 08
09
10
11
12
13
Term (months)
Gross Annual Coupon Rate
12
5.99% - 14.74%
24
8.99% - 17.49%
36
9.99% - 18.49%
48
10.99% - 19.49%
60
12.99% - 20.99%
14
Year
Portfolio composition3
Key business metrics
Ranges listed below represent the 80th-20th percentile values of each loan metric across the entire marketplace portfolio:
Ranges listed below represent the 80th-20th percentile values of each business metric per corresponding FC rating:
Size of loan : $175,000 - $50,000 Age of business : 14 - 4 years | Geographic location : 47 states Term (months)
Risk Rating
A+
A
B
C
2013 Gross Revenue
$3.85-0.87m
$2.91-0.43m
$2.47-0.42m
$2.16-0.35m
$0.70-0.11m
$0.31-0.05m
$0.22-0.04m
$0.18-0.04m
12 (0.3%)
A+ (1.3%)
2013 EBITDA
24 (12.2%)
A (20.3%)
36 (48.6%)
B (45.6%)
Debt Coverage Ratio
6.5x-1.9x
3.3x-1.5x
2.2x-1.2x
1.8x-1.1x
48 (21.4%)
C (32.9%)
FICO score4
791-707
760-691
736-666
712-643
60 (17.4%)
1) Mills, Karen G., and Brayden McCarthy. “The State of Small Business Lending: Credit Access During the Recovery and How Technology May Change the Game.” Harvard Business School Working Paper, No. 15-004, July 2014. 2) [Lending data source]FDIC: Loans to Small Businesses and Farms, FDIC-Insured Institutions, 1995 - 2014. https://www2.fdic.gov/qbp/timeseries/SmallBusiness&FarmLoans.xls; [GDP data source] Department of Commerce. Bureau of Economic Analysis. GDP Press Release. Table 3. 3) Marketplace portfolio includes all loans originated by Funding Circle USA, Inc. and/or its U.S. based affiliates (individually and collectively, “Funding Circle USA”) from 3/11/2014 to 3/9/2015 except for loans made to new franchise borrowers (those borrowers with less than 2 years of operational history) unless such borrower has provided a corporate franchisor guarantee. Funding Circle USA no longer offers loans to a business with less than two years of operational history unless the business is a franchisee and provides a corporate franchisor guarantee. 4) FICO score represents the FICO score of one guarantor per each loan originated by Funding Circle USA as of the date the guarantor applied for a Funding Circle USA loan on behalf of the business; loans may have more than one guarantor.
W : fundingcircle.com/us/invest
E : [email protected]
T : (855) 849-1940
Investment Profile 2Q 2015
Ways to invest The Funding Circle Marketplace
1) Browse & select investments Investors who wish to actively select individual portfolio investments can participate via Funding Circle USA’s online marketplace. Here, investors browse and purchase Notes.1
Recommended minimum investment
$50,000
Available assets
Notes1 of all FC ratings and maturities
Minimum Note size
$1,000
Servicing fee charged to investor on loans
2) Enroll in automated investing
0.083% per month2
Supported account types
Institutional, individual accounts and IRAs
Investors on Funding Circle USA’s marketplace can set their desired investment criteria and automatically build their portfolios. To learn more, contact the Funding Circle Securities team.
Investments via traditional or Roth IRAs are welcome Funding Circle USA welcomes investments via traditional or Roth IRAs. To learn more about how to invest with a tax-advantaged account, please contact the Funding Circle Securities team.
Contact us to get started Please call us between 8:00am and 6:00pm PT at (855) 849-1940 or email [email protected] to get started.
“
Funding Circle gave me the spark I needed to hire top-notch staff and more than double our revenue last year. Dorika Beckett, Harvard MBA Founder/CEO, LiveWell Home Care Funding Circle USA 2014 borrower3
”
Sign up online To begin our onboarding and accreditation process, visit Funding Circle Securities’ website today: www.fundingcircle.com/us/invest
1) “Notes,” issued by Funding Circle Notes Program, LLC (“Funding Circle Notes Program”), are promissory notes that represent a pro rata interest in corresponding business loans and are dependent for payment on payments that Funding Circle Notes Program receives on the corresponding business loans originated by an affiliate of Funding Circle Notes Program. 2) The servicing fee is calculated as a percentage of the outstanding principal amount of the loan prior to applying the current payment. For additional information, please refer to the confidential offering materials of Funding Circle Notes Program. 3) Testimonials contained herein may not be representative of the experience of other borrowers. Funding Circle Securities, LLC (“Funding Circle Securities”), member FINRA/SIPC, is owned and operated by Funding Circle USA, Inc. All securities related activities are conducted through Funding Circle Securities. Funding Circle Securities only offers investment products and securities of its affiliates, and such products and securities are not publicly traded and may be subject to holding period requirements. Securities offered through Funding Circle Securities are only suitable for Accredited Investors, as defined by Rule 501 of the Securities Act of 1933, who are familiar with and willing to accept the high risk associated with private investments. Investing in private placements requires high-risk tolerance, low liquidity concerns and long-term commitments. Investors must be able to afford to lose their entire investment. Carefully consider the investment objectives, risk, charges and expenses of any investment product prior to investing. No communication contained herein should be construed as a recommendation for any security offering. This website provides general and preliminary information about securities offered through Funding Circle Securities and is intended for initial reference purposes only. It is not a summary or compilation of all applicable information and is not complete. This website does not constitute an offer to sell or buy any securities by Funding Circle Securities. There shall be no offer or sale of any securities without the delivery of confidential offering materials and related documents (the “Offering Materials”). This information contained herein is qualified by and subject to more detailed information in the Offering Materials.
W : fundingcircle.com/us/invest
E : [email protected]
T : (855) 849-1940
