Folk2Folk reaches £200m lending milestone

Folk2Folk has announced that it has now lent £200m to hundreds of local businesses across the UK.

The P2P lending platform has supported businesses in agriculture, the visitor economy and property sectors to grow, diversify or refinance.

The platform’s local economic model Folkonomics has also helped to build socially and financially successful communities as part of Folk2Folk’s local lending movement.

“Reaching £200m lent highlights the important role Folk2Folk plays in rural areas, providing a lifeline to many businesses seeking debt finance for growth, diversification or development,” said Giles Cross, CEO at Folk2Folk (pictured above).

“That said, £200m lent cumulatively isn’t the metric that really excites me.

“What motivates me, is not the volume of money lent, but the number of businesses we’ve helped access the capital they need to secure their growth, development and diversify.

“That’s the number I care about the most, and I’m excited that Folk2Folk will continue to help hundreds more businesses across rural communities as we grow.”

Folk2Folk attributed reaching the milestone down to its local lender community which has placed £20,000 or above on the platform.

The average lent per lender is now more than £65,000, with lenders receiving 6.5% pa interest, which is paid monthly.

“We’re also very proud to have an offering our lenders love, as they enjoy participating in the local lending movement, transforming their local communities to help create new jobs and revenue opportunities for rural and local UK businesses,” added Giles.

“And coupled with this, the knowledge that our inflation-beating interest rate is helping to bolster our lenders’ income is a source of great pride for all of us at Folk2Folk.

“Our business is built on the value of fair exchange, where the bigger we get, the more our customers benefit on both sides of the equation.”  

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