Funding Circle inks £45m funding line from Nordic lender Avida
FUNDING Circle has secured a €50m (£44.7m) funding line from Nordic lender Avida Finans AB to support small businesses in Germany and the Netherlands.
Avida will lend the €50m through the peer-to-peer lender’s German and Dutch platforms over a nine-month period, with a view to extending the partnership and lending a larger amount in 2020.
The agreement is believed to be the first time a Nordic financial institution has invested in small business loans through a P2P lending platform.
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“Today’s announcement highlights the significant opportunity for banks to lend directly to European small businesses,” Sachin Patel (pictured), chief capital officer at Funding Circle, said.
“Small- and medium-sized enterprise (SME) loans are a uniquely attractive asset class across all our geographies and Avida joins a diverse range of investors on our platforms.
“We are excited to be the first lending platform to work with a notable Nordic financial institution to help even more small businesses in Germany and the Netherlands get the finance they need to grow.”
Tord Topsholm, chief executive of Avida Finans AB, said the lender was previously unable to tap into these markets.
“We have a growth plan for Avida, which we follow step by step,” Topsholm said.
“With the help of a well-diversified portfolio, we will reach a total lending to consumers and corporate customers of €1bn in total lending by 2020.
“The cooperation we start today will take us further steps towards to reach our goals.”
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