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Funding Circle USA Launches Their Fractional Marketplace

by Peter Renton on January 28, 2015

Funding Circle Launches Fractional Marketplace for P2P Investors

It has been a big week for industry news. Yesterday, Funding Circle USA launched their fractional marketplace aimed at individual accredited investors. In what is the first offering of its kind in this country investors can now invest directly in fractions of small business loans.

Until now, Funding Circle investors could invest in whole loans or through Funding Circle’s own fund: FC Partners Fund 1 (full disclosure: Lend Academy Investments P2P Fund is an investor in FC Partners Fund 1). And to invest in whole loans that average around $100,000 you need to have a very large portfolio to be fully diversified.

A Minimum Investment of $1,000 per Loan

I should point out immediately that we are not talking about $25 loan fractions here. Funding Circle is only open to accredited investors and they have set the minimum investment to $1,000 per loan. They have also set the minimum account total to $50,000.

I chatted with Sam Hodges, the co-founder and U.S. managing director of Funding Circle, earlier this week about this news. He told me that Funding Circle currently has 500 investors who have expressed interest in their fractional product and he expects to grow that number to many thousands by the end of the year.

About Funding Circle’s Fractional Marketplace

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Prosper Acquires American Healthcare Lending

More big news from Prosper today and this story is very significant. Prosper has completed their first acquisition – American Healthcare Lending (AHL) – for $21 million in cash.

As the name implies AHL is for patients looking to finance their medical procedures. Founded in 2009 in Salt Lake City, Utah, they work in a number of verticals within health care: cosmetic surgery, fertility, spine and neuro surgery, behavioral health, just to name a few. They are not actually a lender as such; rather they have developed a cloud-based patient financing platform that is integrated with a variety of lenders including Prosper.

This is from the AHL website:

American HealthCare Lending sits at the intersection of the healthcare, technology, and financial services markets and we are using technology to bring innovative financial services solutions to a massive healthcare problem. Our patient financing platform allows healthcare providers nationwide to Make Healthcare Affordable™ for patients every day by offering high-dollar installment loans to individuals with good credit.

This acquisition all started when AHL became a referral partner of Prosper last year. AHL is an innovative young company that appealed to the executive team at Prosper. They are looking to disrupt financing in the healthcare industry in a similar way Prosper is looking to disrupt the broader consumer lending industry.

AHL works directly with a number of lenders, including Prosper, but their main innovation occurs inside the doctors’ offices. The patient can enter their information on the spot and get a decision on their loan instantly. The maximum loan size is $100,000 and loan terms go up to 7 years. Obviously the loans they refer to Prosper would fit within Prosper’s loan terms – a maximum size of $35,000 and a maximum loan term of 5 years.

A Strong Position in the Medical Financing Market

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Prosper Stops Updating Their Loan Data on a Daily Basis

January 26, 2015

In a move that was not unexpected Prosper announced today that it will no longer update its loan data on a daily basis. Data will now be available 45 days after the close of each quarter. Now, when you go to their data download page there are no files to choose – you just receive this message: As I said, […]

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Marketplace Lending News Roundup – January 24, 2015

January 24, 2015

During the week I share the latest marketplace lending news on Twitter as it happens. Then every Saturday I take the most interesting news items and blog posts from the past week and share them here. RBS to refer rejected small firms to peer-to-peer lenders from Reuters UK – The biggest news of the week was undoubtedly […]

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LendingRobot Closes on a $3 Million Series A Funding Round

January 21, 2015

The marketplace lending ecosystem continues to develop. Yesterday, LendingRobot announced a significant funding round that will allow it to “improve its service and to accelerate growth” according to their press release. Russian venture capital firm, Runa Capital, led the $3 million round. They have previous experience in this industry through their investment in leading UK P2P lender […]

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Marketplace Lending News Roundup – January 17, 2015

January 17, 2015

During the week I share the latest marketplace lending news on Twitter as it happens. Then every Saturday I take the most interesting news items and blog posts from the past week and share them here. Heads I Win / Tails You Lose: Rising US Interest Rates in 2015 & Their Potential Impact on The Marketplace Lending […]

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Google and Lending Club Announce Their First Partnership

January 15, 2015

Today, Lending Club announced a new partnership, one that many of us have been anticipating for some time. It has been almost two years since Google invested in Lending Club and we have all been waiting for some kind of partnership to be announced since then. While the partnership announced today is not what many […]

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The Software Company Powering Marketplace Lending Platforms

January 13, 2015

Last year dozens of marketplace lending platforms launched all over the world. Given the publicity this industry has received recently many more platforms will likely launch this year. And every one of these platforms will need software to run their lending operation. Enter Cloud Lending. Founded in 2012 by Snehal Fulzele and Darpan Saini in […]

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Marketplace Lending News Roundup – January 10, 2015

January 10, 2015

During the week I share the latest marketplace lending news on Twitter as it happens. Then every Saturday I take the most interesting news items and blog posts from the past week and share them here. International P2P Lending Services – Loan Volumes December 2014 from Wiseclerk – The monthly numbers from all the major European platforms. […]

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Podcast 30: Rohit Arora of Biz2Credit on Small Business Lending

January 7, 2015

Rohit Arora, the CEO and Co-Founder of Biz2Credit has been quietly building one of the leading small business lending platforms in this country. If you haven’t heard their name much I can assure you that is going to change very soon. They have issued over $1.2 billion in small business loans to date and will […]

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