Funding Circle hits $10bn lending milestone
FUNDING Circle has hit a major milestone after lending $10bn (£8.3bn) to small businesses globally through its platform.
Since its launch in 2010, Funding Circle has lent money in the UK, US, Germany and the Netherlands, contributing $2 to GDP for every $1 lent, according to Oxford Economics.
“We are incredibly proud that Funding Circle has become small business’ first choice for loans,” said Bernardo Martinez, Funding Circle US managing director.
“We look forward to continuing to build on the strong foundations we have put in place to help many more businesses in the years ahead.”
Funding Circle has facilitated loans from more than 90,000 investors to 72,000 small businesses.
The company’s lending approach enables small businesses to access fast, affordable and transparent funding for a variety of business needs, the company said.
Investors on Funding Circle’s platform likewise have the opportunity to earn attractive, risk-adjusted returns from a previously inaccessible asset class, it said.
The company manages a loan portfolio of £2.5bn in the UK, $1bn in the US, €156m (£143m) in Germany and a further €115m in the Netherlands. In the US, the platform holds more US small business loans outstanding than almost 98 per cent of banks.
The FTSE 250-quoted firm said that it has stepped in to serve smaller businesses in each of its markets because banks continue to focus on loans to larger companies.
“The lack of support from traditional bank lenders has resulted in more small businesses turning to non-bank options such as online lending when seeking finance, driving huge economic growth as a result,” Funding Circle added.