Folk2Folk reaches £250m lending landmark
FOLK2FOLK has reached its £250m lending landmark, with the average loan size exceeding £275,000 on the peer-to-peer platform.
The rural business lender funds businesses across a variety of sectors, including agriculture, alternative energy, leisure and tourism, hospitality and property development.
It also spearheads The Local Lending Movement through its model of match-making local lenders with local businesses.
Folk2Folk said that the lending milestone has been reached thanks to a growing community of individual lenders who have placed £20,000 or more on its platform.
“Reaching the £250m milestone highlights the important role Folk2Folk plays in providing a lifeline to many SME businesses,” said Giles Cross, chief executive of Folk2Folk.
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“Helping so many companies across local communities have access to much needed capital to secure their growth, development and diversification is at the heart of what we do.
“The Local Lending Movement can transform local communities by creating new jobs and revenue opportunities for rural and local UK businesses.
“Coupled with this, our inflation-beating interest rate is helping to bolster our lenders’ savings pots by providing an additional source of income.”
Lenders receive an average of 6.5 per cent per annum in interest which is paid monthly, and they can invest through Folk2Folk’s Innovative Finance ISA to benefit further from the tax wrapper.
Read more: Folk2Folk hits £200m lending milestone
The P2P platform has claimed that its local lending model creates additional value by aiding the creation of local jobs, retaining of local talent and creating a positive impact on the local economy.