Alternative funder pushes broker commission to 4%

Alternative funder pushes broker commission to 4%


An alternative online lender has announced that it has increased the commission payable to brokers on the completion of any impending asset finance deals.

Crowdfunder Funding Circle, which allows businesses to borrow money directly from independent investors, will pay 4 per cent commission to intermediaries for any asset finance deal submitted by the end of January 2013.

The payment includes a Christmas bonus of 1.5 per cent, and is payable to all brokers who successfully place a hire purchase loan application before the end of the month.

The move appears to signal expansion into the gap left in the asset finance market following the withdrawal of ING.

The Dutch bank closed its UK leasing subsidiary in November, leaving a funding shortfall of over £1 billion for British business alone.

Companies have recently been turning to leasing contracts in the absence of readily-available credit, yet ING’s withdrawal removed up to 40 per cent of the capital made available through asset and leasing finance.

Funding Circle accepts applications from limited company businesses with a trading history of at least two years and will consider making funds available against most types of hard assets, including wheeled and oil-dripping resources.

Since launching in 2010, the crowdfunder has expanded its network of lenders to include more than £60 million of funding.

Most recently, Funding Circle was awarded with the title of Innovative Lender of the Year at this year’s NACFB Awards.

Commenting on the news, Laura McMullen, Business Development Director at Funding Circle, said: “We have launched this bonus commission for our registered brokers following the imminent withdrawal of ING from the asset finance market and welcome enquiries from all brokers, including those that may not yet be registered with us.”


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