Funding Circle have launched their C- market, which has an estimated 5% annual bad debt and a minimum lending rate of 11.5%.

For a basic rate tax payer, this would equate to a return of 3.4% per annum, assuming that bad debt was at estimates, with a 1% fee. However for a higher rate tax payer, this would reduce to 1.3% per annum, which is significantly worse than for the lower risk markets.

More details to follow...