THINCATS has joined a select group of peer-to-peer lenders that have received funding commitments from the British Business Bank (BBB).
The peer-to-peer business lender unveiled the new £20m funding line on Monday, which will be provided by British Business Investments (BBI), a commercial subsidiary of the state-backed development bank.
The commitment is part of BBI’s investment programme, which aims to widen sources of finance for small- and medium-sized businesses.
ThinCats said that the funding will be used to make term loans that will support the growth of firms across the UK.
“We are very excited to welcome British Business Investments to our group of funders,” said Damon Walford, chief development officer at ThinCats.
“This is a significant step in our mission to level the playing field for British entrepreneurs whose growth ambitions are being held back by traditional lending models.”
The BBB has previously channelled funds via P2P platforms RateSetter, Funding Circle and MarketInvoice.
In November 2018, the development bank confirmed a new £150m facility to back Funding Circle loans, provided in the form of a loan to its dedicated investment trust, the Funding Circle SME Income Fund.
Since March 2013, the BBB has lent £165m through Funding Circle.
“A big part of our role is to increase the overall supply and diversity of finance – both product and provider – on offer to UK smaller businesses thereby creating more choice and competition in the market,” said Catherine Lewis La Torre, chief executive of BBI.
“ThinCats’ innovative approach brings a welcome additional model to the market and we look forward to working with them so more funding reaches businesses across the UK.”