FOLK2FOLK, the peer-to-peer business lender, has announced it will be opening a new branch in Gloucestershire on 1 November, as part of its national expansion plans.
The Cornwall-headquartered business, which has a £25,000 minimum investment threshold, said on Monday that it had chosen Tewkesbury in Gloucestershire for the new branch as it had established that there was a local demand there.
The new high-street branch, which is Folk2Folk’s third opening, will look to attract both local businesses looking for financing and potential investors. The company is looking to hire four members of staff to service the new office.
Folk2Folk was set up by the owners of law firm Parnalls of Launceston in 2013. Its loans are secured – usually against property – and investment returns range from 5.5 per cent to 6.5 per cent.
“Our mission is to help local businesses get access to the finance they need to grow by matching them to local investors in a quick, simple and easy process,” said chief executive Jane Dumeresque.
“By establishing a local presence, we can encourage the local community to invest through Folk2Folk to help local business owners prosper and thrive. We believe it’s always more interesting and reassuring when an investor can see what exciting project their money is supporting.”
Folk2Folk is not the only P2P platform to see bricks-and-mortar branches as a way of moving into the mainstream. Assetz Capital’s chief executive Stuart Law told Peer-to-Peer Finance News last month that it is planning to open branches across the country, although these will be aimed more at borrowers than investors.