FUNDING Circle has cut its growth forecasts for 2019 due to economic uncertainty and lower demand for its business loans.
The publicly-listed peer-to-peer business lender said in a half-year update that it is anticipating revenue growth of around 20 per cent for this year, compared with previous guidance of 40 per cent.
This was blamed on an “increasing uncertain economic outlook” and a reduction in loan demand.
The platform also said it had tightened lending to higher risk bands.
It reported its loans under management across its platforms in the UK, US, Germany and the Netherlands had increased by 37 per cent annually in the first half of the year to £3.5bn and it made new loan originations of £1.2bn across the group, up 14 per cent.
It will report its full interim results on 8 August.
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“The uncertain economic environment has reduced demand from small businesses and led us to proactively tighten lending criteria,” Samir Desai (pictured), chief executive of Funding Circle, said.
“As a result, revenue growth will be impacted.
“We recognise that this is a change from our previous guidance, but we are taking the prudent course of action for the long-term growth and development of our business.
“We remain confident in our aim to become the world’s largest small business loans provider, helping millions of businesses to create jobs and support economic growth.”
Funding Circle’s shares were trading more than 16 per cent lower as of 10.48am.
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