Folk2Folk is lining up more institutional partnerships for 2020, with a second unnamed local authority already registered on the platform.
Cheltenham Borough Council became the first local authority to lend through the rural peer-to-peer business lender last year and Folk2Folk said this is just the start for institutional partnerships.
“More are in progress and a further local authority has registered as a lender but has requested we delay announcement until lockdown is over,” a spokesperson told Peer2Peer Finance News.
The arrangements allow councils to fund local businesses through the platform.
It comes as Folk2Folk announced last week that it achieved profitability for the first time in its seven-year history during 2019.
An update from director Louis Mathers in the annual accounts said Folk2Folk is in a “good position to weather the current turbulence” from the coronavirus but cautioned it may be tricky to reach its profit targets.
“Pre Covid-19 we aimed to generate £1.1m profit in the next financial year and reward dividends to our shareholders by the end of 2022,” Mathers said.
“This will be extremely challenging in the current economic climate as we continue to reduce costs to maintain positive cashflow.”
The annual accounts revealed an unnamed member of its management funded a loan through the platform last year.
A spokesperson said the executive, who cannot be named, did not know the borrower before funding the loan.
“The auditors included mention of this for transparency as it relates to a key member of the management who is also a Folk2Folk lender having invested into a loan during that financial year,” a spokesperson said.
Read more: Folk2Folk chief bullish on 2019 prospects