borrower will pay no more than this. However each loan goes through an auction process wherein investors bid to invest. This process actively lowers the final interest rate payable.

Investors can choose which opportunities to invest in and can invest as little as £25 per loan. The Marketplace allows investors to buy and sell whole or part loans between themselves. Through this system, new investors can quickly build up a diversified portfolio of investments. Alternatively, investors can access their cash by selling their loans to other investors and withdrawing the money.

The platform was designed, built and is maintained in-house, and undergoes continual improvement. In July 2015 the company released “AutoBuy”, a feature which automates the balancing of portfolios on an ongoing basis by buying loan parts from other investors. Together with AutoBid – automated bidding in new auctions – and Automatic Cash Withdrawal, these tools make portfolio and money management significantly easier, especially for those new to investing.

FundingKnight was founded in 2011. Loans are available only to UK businesses or developers. Investors must pass identity checks but can be based anywhere worldwide.

FundingKnight is a member of the fraud prevention agency CIFAS, and the industry association UKCFA.