SME Lenders Company Analysis

Goals

Obtain information on the business model, products offered, customer acquisition and onboarding method, lending or customer statistics, and the factors contributing to the success of Ondeck and Funding Circle.

Early Findings

SME Lenders Company Analysis

Funding Circle

Business Model

  • Funding Circle earns from the servicing fee that it is charging its investors.
  • The servicing fee covers the loan services that Funding Circle provides.
  • Some of the loan services that Funding Circle provides include performing the processes necessary to transfer the loan amount from the investor to the buyer at the beginning of the loan term.
  • Funding Circle also helps in the collection and distribution of payments from the borrowers to the investors.
  • The company also charges the loan services fee to operate its Funding Circle Client bank accounts. It also enables the necessary movement of loans or loan portions.
  • The company also earns from a special situation fee that is computed as a portion of the remaining loan principal.
  • Overall, the company earns from the 1-7% transaction fee and the 1% annual servicing fee that it charges for its services.

Products Offered

Success Factors

Lending or Customer Statistics

Customer Acquisition and Onboarding Method

Summary of Findings:

  • Our initial research presented some insights on the business model, products offered, customer acquisition and onboarding method, lending or customer statistics, and the factors contributing to the success of Funding Circle.

Proposed next steps:

You need to be the project owner to select a next step.