Folk2Folk hits £200m lending milestone

Folk2Folk has hit the £200m lending milestone, with investors channelling more than £65,000 on average through the peer-to-peer platform.

The rural business lender said on Monday that the milestone demonstrates the important role that it plays in the countryside, by supporting businesses grow whilst boosting the UK economy.

Read more: Folk2Folk makes its IFISA available for transfers

There is a minimum investment on the platform of £20,000, but the average amount is now in excess of £65,000, Folk2Folk said.

“Reaching £200m lent highlights the important role Folk2Folk plays in rural areas, providing a lifeline to many businesses seeking debt finance for growth, diversification or development,” said Giles Cross, Folk2Folk’s chief executive.

“That said, £200m lent cumulatively isn’t the metric that really excites me. What motivates me is not the volume of money lent but the number of businesses we’ve helped access the capital they need to secure their growth, development and diversify.

Read more: Folk2Folk joins the Peer-to-Peer Finance Association

“That’s the number I care about the most, and I’m excited that Folk2Folk will continue to help hundreds more businesses across rural communities as we grow.”

Folk2Folk provides business loans secured against UK properties to small firms in rural areas, often in the agricultural sector. Investors can expect to receive annual returns of 6.5 per cent, paid on a monthly basis.

Read more: Folk2Folk hires Ian Bell as head of farm and rural engagement