Folk2Folk eyes bridging market

Folk2Folk has revealed that it is planning to launch a bridging product within the next year.

Roy Warren, interim managing director at Folk2Folk, stated in an interview with Bridging & Commercial that the product would be fairly priced and wouldn’t compromise its credit stance.

He claimed there was a market for it to start offering this type of funding.

Roy said that it would wait until it had secured institutional funding before it launched the bridging product.

The P2P lender is currently seeking around £25m–30m of institutional funding to supplement its funding options.

However, Roy said that he didn’t want this to exceed more than 30% of its overall funding.

Folk2Folk has been searching for institutional funding throughout 2019, and Roy claimed that it was now in discussions with challenger banks and venture capital funds, but there were “lots of hoops to jump through” to get there, with Folk2Folk not wanting to change the nature of its lending.

It has now surpassed its £300m lending milestone, and Roy added that it had a conservative target of providing another £60m–80m more over the next year.

In order to achieve this, the broker market is the distribution avenue it will now pursue whole heartedly, but it is not looking to canvass hundreds of brokers and instead wants to build relationships with a select number.

“I want a really deep, meaningful relationship with a good number of brokers, really, that understand us, and the quickest way of getting a loan out of us is if the broker understands where we're coming from and we understand what they're looking for.

“So, it all becomes about relationships, and that's what I want to spend my time doing … building those deep, meaningful relationships that are beneficial to both of us.”

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