Folk2Folk has partnered with German debt marketplace Crosslend to raise the institutional funding needed for the coronavirus business interruption loan scheme (CBILS).
At the start of the month, the rural local business peer-to-peer lending platform was accredited to deliver the government’s emergency loan scheme, which requires institutional funds and does not accept retail investment.
CrossLend connects loan originators such as Folk2Folk and institutional investors. Folk2Folk said that the new partnership would help it to access institutional funding for both CBILS and non-CBILS lending.
“Our ambition is to have a rich amalgam of investor streams with a healthy mix of both retail and institutions,” said Roy Warren (pictured), managing director of Folk2Folk.
“We’ve been steadily building our institutional relationships and our new partnership with CrossLend will expedite this further.
“We’re in the match-making business, so it made sense to use the same marketplace approach to introduce us to new institutional investors.
“CrossLend is a specialist at this and has a clear understanding of and respect for the Folk2Folk brand and business.”
“We’re excited to partner with Folk2Folk and see our collaboration as a real contribution to expanding the funding options of local UK SMEs, both in post-Covid-19 economic recovery and longer-term,” said Oliver Schimek, founder and chief executive of CrossLend.
“As a key UK marketplace lender, Folk2Folk’s reputation and experience aligns well with CrossLend’s mission to broaden and standardise the possibilities of SME lending across Europe.”