Former peer-to-peer lending giant Funding Circle has updated its business loan offering by increasing loan amounts, offering shorter repayment terms, and raising commission for introducers.
The business lender has been focused on offering government-backed lending schemes since the start of the pandemic, but with the recovery loan scheme (RLS) ending, it has updated its business lending terms “so that small businesses can still access the fast, hassle-free finance they need”.
Under the government loan schemes, businesses were limited to loans with a value of no more than 25 per cent of their turnover. However, Funding Circle will now allow business owners to apply for loans of up to 60 per cent of their annual turnover.
Borrowers will also be able to apply for shorter loan terms, of six or 12 months, rather than the previous minimum of two years.
“This is great news for our customers as they now have the option of short term credit, which reduces the overall cost of borrowing,” Funding Circle said.
The lending platform has also retooled its commission scheme, and is now offering full commission to its brokers, as a thank you for all of their hard work referring more business borrowers to the platform.
Funding Circle was one of the few P2P lending platforms to win authorisation to offer the bounce back loan scheme and the coronavirus business interruption loan scheme, as well as its successor the RLS.
The business lender stopped offering the RLS in mid-May.
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