Funding Circle receives £40m backing

Funding Circle receives £40m backing




Peer-to-peer lender Funding Circle has received £40m in funding from the government-owned British Business Bank Investments Ltd.

The platform – which specialises in lending to small- and medium-sized enterprises (SMEs) – has facilitated a 6.2% annual return for the British Business Bank over the last four years, resulting in £5m in cumulative interest for the taxpayer.

According to a study by the Centre for Economics and Business Research, 10,000 UK businesses have benefited from £60m of government lending via Funding Circle, which has also created an estimated 30,000 jobs.

Catherine Lewis La Torre, CEO of British Business Bank, said: “Peer-to-peer lending is becoming an increasingly important source of finance for smaller businesses, with AltFi data showing an 85% increase in lending via the sector from 2014 to 2015.

“A key part of our remit is to support the development and growth of such finance markets, while earning an attractive, commercial return for the taxpayer.

“We look forward to seeing our latest commitment to Funding Circle enabling the growth and success of many more businesses across the UK.”

James Meekings, co-founder and UK managing director of Funding Circle, said: “Over the last six years, Funding Circle has proved to be a more efficient way for small businesses to access the finance they need to grow and expand, while providing investors with attractive, stable returns.

“This further lending commitment is recognition of the success of the partnership to date and we look forward to working with the British Business Bank to help thousands more small businesses.”

The British Business Bank invests in challenger banks, non-bank providers of finance, debt and venture capital funds to increase the choice of finance for SMEs.

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